MGMT 1 Chapter Notes - Chapter 15: Associated Grocers, Social Commerce, Multi-Level Marketing
Document Summary
Marketing intermediaries (middlemen) : organizations that assist in moving goods/ services from producers b2b consumers (b2c) Wholesaler : marketing intermediary that sells to other organizations. Retailer : organization that sells to ultimate consumers. Channels of distribution: help ensure communication flows & flow of money & title to goods. Right quantity & assortment of goods will be available when & where needed. Perform certain marketing tasks: transporting, storing, selling, advertising, relationship building. Manufacturers contact wholesalers establishes contact with 5 retailers . Existence reduces number of exchanges from 25 to 10. Some say: add costs and should be eliminated. Some say: add value , & that value >>> costs. Cost of what we buy: marketing costs that pay for work intermediaries. That is: if get rid of intermediaries reduce cost of everything we buy. Cereal: drive to michigan to buy it (millions of people), but save shipping cost.
