MCS 1000 Chapter Notes - Chapter 14: Disintermediation, Rolex, Campbell Soup Company
3 Apr 2016
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Defining marketing channels of distribution: marketing channel: individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users. Makes the flow of goods possible from a producer, through intermediaries. Intermediaries purchase items from the seller, store them and resell them to buyers. Wholesalers sell products to organizations which in turn sell to consumers: types of intermediaries: Middle man: intermediary between manufacturer and end-user markets. Agent/broker: intermediary with legal authority to act on behalf of the manufacturer. Wholesaler: intermediary who sells to other intermediaries, usually to retailers (usually applies to consumer markets) Distributor: any intermediary who sells products, maintains inventory, extends credit etc. (usually applies in business markets) Dealer: can mean the same as distributor, retailer, wholesaler, etc. Value created by intermediaries: make selling goods and services more efficient b/c they minimize the number of sales contacts necessary to reach the target market, functions performed by intermediaries:
