chapter 15

consists of individuals and firms involved in the process of making a product available for use bye consumers

an intermediary between manufacturer and end user

any intermediary with legal authority to act on behalf of the manufacturer

any intermediary who sells to other intermediaries usually to retailers

an intermediary who sells to consumers

intermediaries who perform a variety of distribution functions

Involves buying selling and risk taking because they stock merchandise in anticipation of sales

evident in the gathering storing and dispersing of products

Assists producers in making goods and services more attractive to buyers

producers and consumers deal directly with each other

inserted between producer and consumer and perform numerous channel functions

Performs a variety of marketing channel functions including selling, stocking, delivering a full product assortment and financing

Employ the internet to make products available for consumption by consumer

Allow consumers to buy products by interacting with various advertising media without a face to face meeting with the sales person

Is the blending of different communication and delivery channels that are mutually reinforcing in attracting retaining and building relationships with consumers who shop and buy in intermediaries and online

An arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product

where one firms marketing channel is used to sell another firms product

Independently owned firms that take title to merchandise they handle

Carry a broad assortment of merchandise and perform all channel function

Offers a relatively narrow range of products but have an extensive assortment within the product lines carried

Furnish the racks or shelves that display merchandise in retail stores, perform all channel functions and sell on consignment

Take title to merchandise but sell only to buyers who pay them cash

Wholesalers that own the merchandise they sell but do not handle or deliver

Small wholesalers that have small warehouses from which they stock trucks

work for several producers and carry non competitive merchandise in an exclusive territory

Represents a single producers and are responsible for the entire marketing function

Independent firms whose principal is to bring buyers and sellers together to make sales

professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impacts

A combo of successive stages of production and distribution under a single ownership

A producer might own the intermediary at the next level down

a retailer may own a manufacturing operation

Independent production and distribution firms integrate their efforts on a contactual basis to obtain greater functional economies and marketing than they can achieve alone

Involves a wholesaler that develops a contactual relationship with small independent retailers to standardize and coordinate buying practices merchandising programs and inventor management efforts

a contractual agreement between a parent company and individual or firm that allows the franchise to operate a certain type of business under an established name

exist when small independent retailers form an organization that operates a wholesale facility cooperatively

automobile industry

allows wholesalers to purchase the license and then carbonate bottle and distribute soft drinks

hotels and restaurants

exist when franchisors license individuals or firms to dispense a service under a trade name and specific guidlines

achieve coordination at successive stages of productions and distribution by the size and influence of one channel rather than ownership

consists of agreements and procedures among channel members for ordering and physically distributing a producers product through the channel to the ultimate consumer

• Environment
• Consumer
• Product
• Company

Means that a firm tries to place its products and services in as many outlets as possible

Only one retailer in a specified geographic area carries the firms product

the firm selects a few retailers in a specified geographic area to carry its products

• Information
• Convienicnce
• Vairety
• Post and Pre sale services

arises when one channel member believes another channel member is engaged in behavior that prevents it from achieveing its goals

occurs between diffrent levels in the marketing channel

when a channel memeber bypasses another memeber and sells or buy directly

occurs betweeen intermediaries at the same level

a channel members that coordinates directs and suppors

anticompetitive not illeagal

not illegal but subject to legal action

exsists when a supplier requires channel member to sell only its products or retricts distributors from selling directly competitive products

occurs when a supplier requires distributor to purchase some products to buy others from supplier

type of typing arrangment requires distributor to carry a full line of products in order to sell a specific product

suppliers attempt to stipulate who distributors can resell to and in what region