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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
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.
slide2

Retailing

  • Activities involved in selling goods and services to ultimate consumers

© PhotoDisc

slide3

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

slide4

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

types of wholesaling intermediaries
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

types of wholesaling intermediaries7
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

types of wholesaling intermediaries8
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

types of wholesaling intermediaries9
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

types of wholesaling intermediaries10
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

fundamental retail challenges shelf space
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.
types of retailers
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
slide13
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
slide14
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
slide15
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
slide16
Ace Hardware
    • Cooperatives like Ace help independent retailers compete with chains
slide17
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
slide18
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)