Chapter 2 MKT 542

  Chapter 2    

The Channel ParticipantsMajorParticipants in the Marketing Channel
Why shift distribution tasks to intermediaries?Example:  Distribution of Crayons•  Huge order processing    facility• Huge inventory• Several warehouse    locations• Transportation of    product to consumersMajor Types of WholesalersMerchant WholesalersAgents, Brokers, & Commission MerchantsManufacturers’ Sales Branches & OfficesMajor Trends in Wholesale StructureTrends in Size & ConcentrationMerchant Wholesalers Specialize in Performance Distribution TasksMerchant Wholesalers’ Distribution Tasks Serve CustomersAgent Wholesalers’ Distribution TasksAgent Wholesalers’ Distribution TasksAgent Wholesalers’ Distribution TasksAgent Wholesalers’ Distribution TasksRetail Structure

By Ownership of EstablishmentBy Kind of Business (Merchandise Handled)By Size of EstablishmentBy Degree of Vertical IntegrationBy Type of Relationship with other Business OrganizationsBy Method of Consumer ContactBy Type of LocationBy Type of Service RenderedBy Legal Form of OrganizationBy Management Organizations or Operational TechniqueKind-of-BusinessClassificationsMotor vehicle & parts dealersFurniture & home furnishings storesElectronics & appliance storesBuilding material & garden equip. & supply dealersFood & beverage storesHealth & personal care storesGasoline stationsClothing & clothing accessories storesSporting goods, hobby, book, & music storesGeneral merchandise storesMiscellaneous store retailersNonstore retailersRetail Structure TrendsConcentration in RetailingDistribution Tasks Performed by Retailers
Distribution Tasks Performed by Retailers••Offer manpower & physical facilities close to consumers’ residencesProvide personal assistance to help sell productsInterpret and relay consumer demandDivide large quantities into consumer-sized lotsOffer storageRemove risk by ordering in advance of the seasonRetailers’ Growing Power in Marketing ChannelsFacilitating Agencies in Marketing Channels••Transportation agenciesStorage agenciesOrder processing agenciesAdvertising agenciesFinancial agenciesInsurance companiesMarketing research firms

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