Professional Documents
Culture Documents
Submitted to:
Professor Narciso Immanuel Manny C. Managuelod
Marketing Management
The intermediary can perform functions more than cheaply and more efficiently than
the producer can.
Transform the assortments of products made by producers into the assortments
wanted by the consumers.
Plays an important role in matching supply and demand.
3. Agent a business unit that negotiates purchases, sales, or both but does not take
title to the goods in which it deals.
5. Broker a middleman who serves as a go-between for the buyer and seller.
Transactional Function
Buying: Purchasing products for resale or as an agent for supply of a product.
Selling: Contacting potential customers, promoting products, and soliciting orders.
Risk Taking: Assuming business risks in the ownership of inventory that can become
obsolete or deteriorate.
Logistical Function
Assorting: Creating products assortments from several sources to serve customer.
Storing: Assembling and protecting products at a convenient location to offer better
customer service.
Sorting: Purchasing in large quantities and breaking into smaller amounts desired by
customers.
Transporting: Physically moving products to customers.
Facilitating
Financing: Extending credit to customer
Grading: Inspecting, testing, or judging products, and assigning them quality grades.
Marketing Information and research: Providing information to customers and suppliers,
including competitive conditions and trends.
Specific Considerations
1. Distribution Coverage required because of the characteristics of the product, the
environment needed to sell the product, and the needs and expectations of the
potential buyer, products will vary in the intensity of distribution coverage they
require.
Intensive Distribution
i. Here the manufacturer attempts to gain exposure through as many
wholesalers and retailers as possible.
Selective Distribution
i. Here the manufacturer limits the use of intermediaries to the ones
believed be the best available in geographic area.
Exclusive Distribution
i. Here the manufacturer severely limits distribution; intermediaries are
provided rights within a particular territory.
2. Degree of Control Desired The seller must make a decision concerning the degree
of control desired over the firms products. The degree of control achieved by the
seller is proportionate to the directness of the channel.
Transportation
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1. Corporate System
streamlines the process by bringing all of the elements of the distribution channel,
from manufacturing to the stores, under the ownership of a single business
ownership of the distribution channel can happen from any point in the chain
2. Contractual System
pieces of the distribution channel continue to operate as individual entities
the businesses enter into contractual relationships with other elements in the
distribution channel with their respective obligations and benefits spelled out
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ahead of time
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3. Administered System
employ neither formal contractual obligation nor corporate ownership of the
distribution channel
one member of the distribution channel wields enough power, generally though
sheer size, to effectively control the activities of the other members of the
distribution channel
4. Specialty wholesalers
carry a very narrow range of products and offer more information and
service than other service wholesalers
5. Cash-and-carry wholesalers
operate like service wholesalers except that the customer must pay cash
6. Drop-shippers
own (take title to) the products they sell but they do not actually handle,
stock, or deliver them
wholesalers are mainly involved in selling
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8. Mail-order wholesalers
sell out of catalogs that may be distributed widely to smaller industrial
customers or retailers who might not be called on by other middlemen
9. Producers cooperatives
operate almost as full-service wholesalers with the "profits" going to the
cooperatives customer-members
Retailers
Retail involves the sale of merchandise from a single point of purchase directly to a
customer who intends to use that product. Retailers are the final link in the supply
chain between manufacturers and consumers. Retailing is important because it allows
manufacturers to focus on producing goods without having to be distracted by the
enormous amount of effort that it takes to interact with the end-user customers who
want to purchase those goods.
2. Grocery Stores and Supermarkets - sell all types of food and beverage products, and
sometimes also home products, clothing, and consumer electronics as well.
6. Discount Retailer sell a wide variety of products are often private labeled or
generic brands at below-retail prices. Discount retailers like Family Dollar, Dollar
General, and Big Lots will often source closeout and discontinued merchandise at
lower-than-wholesale prices and pass the savings onto their customers.
7. Mobile Retailer - uses a smartphone platform to process retail transactions and then
ships the products that were purchased directly to the customer.
8. Internet E-tailer sell from an Internet shopping website and ship the purchases
directly to customers at their homes or workplaces and without all the expenses of a
traditional brick-and-mortar retailer, usually sell merchandise for a lower-than-retail
price
Physical distribution
set of activities concerned with efficient movement of finished goods from the end
of the production operation to the consumer
takes place within numerous wholesaling and retailing distribution channels, and
includes such important decision areas as customer service, inventory control,
materials handling, protective packaging, order procession, transportation,
warehouse site selection, and warehousing
part of a larger process called "distribution," which includes wholesale and retail
marketing, as well the physical movement of products
distance shipments, and they offer relatively fast, consistent service for
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supply and demand for producers and purchasers. They are most often
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