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Chapter 02 - Rosenbloom 8ed
Chapter 02 - Rosenbloom 8ed
Marketing Channels
A Management View
8e
Rosenbloom
2
CHAPTER
The Channel Participants
The Channel
Participants
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
① Major participants in marketing channels
② Why shift distribution tasks to intermediaries?
Learning Objectives
⑥ Retail structure
⑦ Retail structure trends
⑧ Distribution Tasks Performed by Retailers
⑨ Retailers’ Growing Power in Marketing Channels
⑩ Facilitating Agencies in Marketing Channels 2
©2013
©2013Cengage
CengageLearning. All Rights
Learning. All Reserved.May
Rights Reserved. Maynot
notbebescanned,
scanned, copied
copied or duplicated,
or duplicated, or posted
or posted to a publicly
to a publicly accessible
accessible website,website,
in wholeinorwhole
in part.or in part.
Objective
Major Participants in Marketing
1 Channels
Producers
& Intermediaries
Manufacturers
Manufacturer direct
to customers
Large quantities of
products
Resell to:
Industrial,
commercial,
or Other
Retailers
institutional Wholesalers
concerns
©2013 Cengage Learning.
©2013Cengage Learning.All
All Rights
Rights Reserved.
Reserved.May
Maynot
notbebe scanned,
scanned, copied
copied or duplicated,
or duplicated, or posted
or posted to a publicly
to a publicly accessible
accessible website,website,
in whole in
or whole
in part.or in part.
Agents, Brokers, & Commission
Merchants
Involved in
Involved in buying
buying &
&
selling
selling
while acting
while acting onon behalf
behalf of
of
clients
clients
Commissions
Commissions
on
on
sales
sales or
or purchases
purchases
Distribute
Owned & operated by
manufacturer’s
manufacturers
products at
wholesale
Manufacturers’
Agents
Market coverage
Sales contacts
Selling
Agents
Market coverage
Sales contacts
Order processing
Marketing Information
Product availability
Customer services
Brokers
Market coverage
Sales contacts
Order processing
Marketing Information
Product availability
Customer services
Commission
Merchant
Market coverage
Sales contacts
Order processing
Breaking bulk
Credit
Holding inventory
— Charles Y. Lazarus
•• Offer
Offer manpower
manpower && physical
physical facilities
facilities close
close to
to
consumers’ residences
consumers’ residences
•• Provide
Provide personal
personal assistance
assistance to
to help
help sell
sell products
products
•• Interpret and
Interpret and relay
relay consumer
consumer demand
demand
•• Divide large
Divide large quantities
quantities into
into consumer-sized
consumer-sized lots
lots
•• Offer storage
Offer storage
•• Remove risk
Remove risk by
by ordering
ordering in
in advance
advance of
of the
the season
season
• Transportation agencies
• Storage agencies
• Order processing agencies
• Advertising agencies
• Financial agencies
• Insurance companies
• Marketing research firms
Why do you think Best Buy is flexing its muscles in the channel? Do
you think this type of behavior is inevitable on the part of giant
dominant retailers?