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Marketing Intermediary. A business firm that operates between producers and consumers or business users, also called a middleman. May be a wholesaler, retailer, or facilitating intermediary. Retailing. Activities involved in selling goods and services to ultimate consumers. © PhotoDisc.

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Marketing Intermediary

  • A business firm that operates between producers and consumers or business users, also called a middleman.

  • May be a wholesaler, retailer, or facilitating intermediary.


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Retailing

  • Activities involved in selling goods and services to ultimate consumers

© PhotoDisc


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Retailing

  • Activities involved in selling goods and services to ultimate consumers

  • An intermediary that handles the redistributes of goods to retailers, other distributors, and sometimes end consumers

Wholesaler

© PhotoDisc


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Retailing

  • Activities involved in selling goods and services to ultimate consumers

  • An intermediary that takes title to the goods it handles and redistributes them to retailers, other distributors, and sometimes end consumers

Wholesaler

  • A distribution channel consisting of direct communication to a consumer or business recipient

Direct

Marketing



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Types of Wholesaling Intermediaries

  • Sales branch: carries inventory and processes orders from available stock

  • Sales office: serves as a regional office for for manufacturer’s sales personnel, but does not carry an inventory

Manufacturer-Owned Facilities

Square D


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Types of Wholesaling Intermediaries

  • Trade fair: Periodic show in which manufacturers in a particular industry display their products and services for wholesale and retail buyers

  • Merchandise mart: A permanent facility in which manufacturers display products for visiting wholesale buyers

Manufacturer-Owned Facilities

Americas Mart


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Types of Wholesaling Intermediaries

  • Merchant wholesaler: An independently owned intermediary that takes title to the goods it sells

  • Merchant wholesalers include:

    • Rack Jobbers

    • Cash-and-Carry Wholesalers

    • Truck Wholesalers

    • Drop Shippers

    • Mail Order Wholesalers

Independent Wholesaling

Intermediaries


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Types of Wholesaling Intermediaries

  • Agents and Brokers: A second group of independent intermediaries who may or may not take possession of the goods, but never take title. They include:

    • Commission merchants

    • Auction houses

    • Brokers

    • Selling agents

    • Manufacturer’s agents

Independent Wholesaling

Intermediaries


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Types of Wholesaling Intermediaries

  • Manufacturers’ agent: A wholesaling intermediary who represents multiple manufacturers of related, but noncompeting products

  • Work on a commission basis and are assigned to geographic territories

Independent Wholesaling

Intermediaries


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Fundamental Retail Challenges: Shelf Space

  • Stockkeeping unit (SKU): specific product offering within a product line that is used to identify items within the line

  • Slotting allowances: fees paid by manufacturers to secure shelf space from retailers for their products

  • Assortment Management: selecting the right mix of products and product lines to meet target market.


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Types of Retailers

  • Retailers can be categorized by:

    • Form of ownership

    • Shopping effort by customer

    • Services provided to customers

    • Product lines

    • Location of retail transactions


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  • Classifying by Product Lines: This classification system groups stores by the product lines they carry.

    • Limited-line store: A retailer that offers a large assortment within a single product line, or within a few related product lines

      • Examples include IKEA home furnishings and Ethan Allen furniture

    • Category killers: retailers that combine huge selection and low prices within a single product category

      • Home Depot and Staples are examples


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  • Department store: large store that offers a variety of merchandise, such as men’s and women’s clothing, appliances, linens, and furniture

  • Mass merchandiser: store that stocks a wider line of goods than a department store, usually without the same depth of assortment within each line

  • Supercenters: Large stores, though still smaller than hypermarkets, that combine discount store merchandise and groceries

  • Off-price retailers: Stores that find exceptional deals on well-known, brand-name clothing and resells them at low prices


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  • Classification of Retailers by Form of Ownership

    • Chain stores: Groups of stores that operate under central ownership and management and sell essentially the same product lines

      • Chain stores have the advantages of purchasing and advertising economies of scale

    • Independent Retailers: account for about 43% of all retail sales

      • Advantage of friendly, personalized service

    • Cooperatives: Groups of independent retailers who band together to increase buying and advertising power


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  • Ace Hardware

    • Cooperatives like Ace help independent retailers compete with chains


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  • Classification by Shopping Effort: Classification system based on the reasons why consumers shop at particular retail outlets

  • Retail stores can be classified as:

    • Convenience

    • Shopping

    • Specialty


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  • Classifying by Services Provided: This classification system consists of three retailer types:

    • Self-service Store (e.g., Kmart)

    • Self-selection Store (e.g., Winn-Dixie or Kroger grocery stores)

    • Full-service Retailers (e.g., Dillard’s or Macy’s)


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