Distributing and Promoting Products
Distribution
distribution mix: the key combination of distribution channels for getting products to end users (consumers and industrial buyers)
wholesalers: sell products to other business which resell them to final users
retailers: sell product directly to end users
direct channel: the producers sells directly to the consumer or organizational buyer without intermediates
retail distribution: producers distribute products through retailers who, in turn, distribute to the consumer or industrial constumer
whosale distribution: involves both a whosaler and then a retailer before the product reaches the end users
market coverage strategy
intensive distribution: distributing through as many channels and channel members as possible
exclusive distribution occurs when the manufacture grants the exclusive right to distribute or sell a product to a limited number of wholesalers or retailers, usually for a spesific geographic area
selective distribution is a midpoint between intensive and exclusive; it is a strategy in which the producer selects a limited number of wholesalers and retailers to sell its product
Wholesalers
role
provide a variety of services (delivery), credit arrangements, and product information-to buyers of product for resale or business use
provide storage and marketing advice in buying and reselling products.
most wholesalers are independent operations that sell goods produced by a variety of manufactures
example
merchant wholesalers
own the goods that they resell, store, and deliver
buys product from manufactures and sells them to other businesses
agents and brokers
work on comissiona dn serve as independent sales representatives for many companies products
do not own their mercahndise
serve as sales and mercahndising arms for producers or sellers who do not have their own sales forces
e-intermediaries are internet based channel members (wholesalers)
one type of e-intermediary, the syndicated seller, is a website that receives commisions for referring online customers to other companies websites
functions
they collect information about sellers and present it to consumers
they help deliver online products to buyers
shopping agents (e-agents) help online customers-both industrial customers and consumers by gathering and sorting information, identifying websites to visit, providing comparison prices, and identifying product features
Retailing
types
product-line retailers
bargain retailers
convenience stores
supermarket are divided into departments, and they stress low prices, self-service, and wide selection
specialty stores are small, offering a full product line in narrow product fields, with knowledgeable sales personnel
department stores have specialized departments for different products. offer a variety of services, such as credut plans and delivery
doscount houses offer a wide variety of products at low prices
factory outlets are manufacturer-owned stores that avoid intermediaries by selling mercahndise directly from factory to customer
wholesale clubs offer large discounts on a wide range of mercahndise to customers who pay annual membership fees
catalog showroom allow customer to view display samples, place orders, and receive purcahses from matched warehouse