Professional Documents
Culture Documents
1 Wholesaler: sponsored voluntary chains wholesaler has relationship with small and
independent retailers to standardize and coordinate purchasing habits, merchandising
programs and inventory management
1.2 Retailer-sponsored cooperatives: independent small retailer form an organisation that
works as a wholesaler
1.3 Franchising: contract agreement between parent company and individual that allows
the individual to work under the established name
Intensity of distribution
1- Intense
o Achieve mass market
o Convenience good
2- Selective
o Work with selected places,
o Shopping, and some specialty goods
3- Exclusive:
o Work with single intermediary
o Specialty goods and industrial equip
Channel conflicts:
- Gray marketing or diverting: unauthorized seller
- Incompatible goals: achieving goal of supplier/producer hinders goals of other
Main goals: attract shoppers, make them consumers, provide best consumer service at cheapest
operating cost