distribution and promotion (404-423) - Connie Cheung World of Business Notes Distribution and Promotion(Pg 404-423 The Emergence of Marketing

Connie Cheung 9/26/07 World of Business Notes Distribution and Promotion (Pg 404-423) The Emergence of Marketing Intermediaries Marketing intermediaries- Organizations that assist in moving goods and services from producers to industrial and consumer users Channel of distribution- a whole set of marketing intermediaries, such as wholesalers and retailers that join together to transport and store goods in their path from producers to consumers Agents/brokers- Marketing intermediaries who bring buyers and sellers together and assist in negotiating an exchange but don’t take title to the goods Why Marketing needs Intermediaries Intermediaries perform certain marketing tasks—such as transporting, storing, selling, advertising, and relationship building—faster and cheaper than most manufacturers would How Intermediaries create exchange efficiency Marketers say that intermediaries add value and that the value greatly exceeds the cost The Utilities Created by Intermediaries Utility- In economics, the want-satisfying ability, or value, that organizations add to goods or services when the products are made more useful or accessible to consumers than they were before Form utility- has been provided by producers rather than by intermediaries Time utility- adding value to products by making them available when they’re needed Place utility- adding values to products by having them where people want them Possession utility- doing whatever is necessary to transfer ownership from one party to another, including providing credit, delivery, installation, guarantees, and follow-up service