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Vsm812s Chapter 2
Vsm812s Chapter 2
Producers
& Intermediaries
Manufacturers
Manufacturer direct
to customers
Independent Manufacturer
middlemen owned
Resell to
Industrial,
commercial,
Retailers other
or
Wholesalers
institutional
concerns
Agents, Brokers, & Commission Merchants 2
Commissions
on
sales or
purchases
2
Manufacturers’ Sales Branches & Offices
Distribute
Owned & operated by
manufacturer’s
manufacturers
products at
wholesale
1987—1997
69.7% Manufacturer’s sales branches
& offices
Manufacturers’
Agents
Market coverage
Sales contacts
2
Agent Wholesalers’ Distribution Tasks
Selling agents
Market coverage
Sales contacts
Order processing
Marketing
information
Product availability
Customer services
2
Agent Wholesalers’ Distribution Tasks
Brokers
Market coverage
Sales contacts
Order processing
Marketing
information
Product availability
Customer services
2
Agent Wholesalers’ Distribution Tasks
Commission
Merchant
Market coverage
Sales contacts
Order processing
Breaking bulk
Credit
Holding inventory
Objective 6: 2
Retail Structure
Retail Trade
Increasing sales
In 1997
— Charles Y. Lazarus
2
Distribution Tasks Performed by Retailers
• Transportation agencies
• Storage agencies
• Order processing agencies
• Advertising agencies
• Financial agencies
• Insurance companies
• Marketing research firms