Chapter 15 - Chapter 15 Distribute Products quickly and...

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Chapter 15: Distribute Products quickly and efficiently I> The emergence of marketing intermediaries a. Marketing intermediaries : a.i. Organization that assist in moving goods and services from producers to industrial and consumer users b. Channel of distribution : b.i. A whole set of marketing intermediaries, such as wholesalers and retailers that join together to transport and store goods in their path (or channel) from producers to consumers c. Agents/brokers c.i. Marketing intermediaries who bring buyers and sellers together and assist in negotiating an exchange, but don’t take title to the goods—at no point do they own the goods d. Wholesaler : d.i. A marketing intermediary that sells to other organizations, such as retailers, manufacturers, and hospitals e. Retailer : e.i. An organization that sells to ultimate consumers II> Why marketing intermediaries? a. Not always necessary, but they often perform certain marketing tasks faster and cheaper than most maufacturers could III> How intermediaries create exchange efficiency a. 5 trying to set up, ends up being 25 contacts whereas a wholesaler results in only 10. adds value that exceeds cos IV> The supply chain a. Supplier’s plants b. Channel of distribution b.i. Manufacturers b.ii. Wholesalers b.iii. Retailers b.iv. Consumers V> Three basic points of intermediaries a. Can eliminate intermediaries, but then consumers or omeone else would have to perform their tasks, such as transporting and storing goods, finding suppliers, and establishing communication with suppliers b. Overall costs are offset by the value they create VI> The Utilities created by intermediaries a. Utility : a.i. The want-satisfying ability, or value, that organizations add to goods or ervics when the products are made more useful or accessible to consumers than they were before b. 6 types of utility b.i. Form utility
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b.i.1. taking raw materials and changing their form so that they become useful products b.i.2. example: farmer separating wheat from chaff and processor who turns wheat into flour b.ii. Time utility b.ii.1. adding value to products by making them available when they’re needed b.ii.2. example: grocery stores open 24 hours a day b.iii. Place utility b.iii.1. making products available where they are needed b.iii.2. example: 7-11 popular because they are usually in easy-to- each locations b.iv. Possession utility b.iv.1. doing whatever is necessary to transfer ownership from one party to another, including providing credit b.iv.2. examples: delivery, installation, guarantees, and follow-up service b.iv.3. allows people to rent or lease goods when they don’t want to own them b.v. Information utility b.v.1. opening two-way flows of information between marketing participants b.v.2. example: newspapers, salespeople, libraries, and websites are all info sources made available by intermediaries, provide information that help people make purchasing decisions
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Chapter 15 - Chapter 15 Distribute Products quickly and...

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