Examples of distribution intermediaries in the following topics:
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- Intermediaries, also known as distribution intermediaries, marketing intermediaries, or middlemen, are an extremely crucial element of a company's product distribution channel.
- For example, merchants are intermediaries that buy and resell products.
- Thus, while they do not own the product directly, they take possession of the product in the distribution process.
- For example, distributors of Coca Cola will not distribute Pepsi products, and vice versa.
- A firm can have any number of intermediaries in its channels.
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- The manufacturer attempts to get as many intermediaries of a particular type as possible to carry the product.
- As a drawback, it can be extremely difficult to stimulate and control the large number of intermediaries.
- In selective distribution, the producer relies on a few intermediaries to carry their product.
- In exclusive distribution,the producer selects only very few intermediaries.
- Success of the product is dependent upon the ability of a single intermediary.
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- Every company must decide on the correct distribution method for its products.
- The company must decide whether to sell its products through an intermediary (such as a chain store) or attempt to sell its products directly to the customer.
- Using an intermediary may sometimes lower transaction costs, as much of the burden is shifted from the producer to the intermediary.
- Selective distribution means that the producer relies on a few intermediaries to carry their product.
- Exclusive distribution means that the producer selects only very few intermediaries, such as is often the case with luxury goods.
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- There are basically 4 types of marketing channels: direct selling; selling through intermediaries; dual distribution; and reverse channels.
- A marketing channel where intermediaries such as wholesalers and retailers are utilized to make a product available to the customer is called an indirect channel.
- Dual distribution describes a wide variety of marketing arrangements by which the manufacturer or wholesalers uses more than one channel simultaneously to reach the end user.
- Each one flows from producer to intermediary (if there is one) to consumer.
- This one goes in the reverse direction and may go -- from consumer to intermediary to beneficiary.
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- The Impact the attitudes of channel intermediaries have on the product
- An alternative term is distribution channel or 'route-to-market'.
- These distribution types include:
- Selective distribution - producers rely on a few intermediaries to carry their product.
- Exclusive distribution - producers select only very few intermediaries.
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- In intensive distribution (such as candy) the manufacturer attempts to get as many intermediaries of a particular type as possible to carry the product
- How many retailers and wholesalers in a particular market should be included in the distribution network?
- There are several types of intermediaries that operate in a particular channel system.
- The objective is to gather enough information to have a general understanding of the distribution tasks these intermediaries perform.
- Other possible performance criteria include maintenance of adequate inventory, selling capabilities, attitudes of channel intermediaries toward the product, competition from other intermediaries and from other product lines carried by the manufacturer's own channel members.
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- Product distribution (or placement) is the process of making a product or service accessible for use or consumption by a consumer or business user, using direct means, or using indirect means with intermediaries.
- Intensive distribution means the producer's products are stocked in the majority of outlets.
- Selective distribution means that the producer relies on a few intermediaries to carry their product.
- Exclusive distribution means that the producer selects only very few intermediaries.
- The decision regarding how to distribute a product has, as its foundation, basic economic concepts, such as utility.
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- Streamlining distribution involves the planning and efficient use of supply chain resources and may involve working with intermediaries.
- Streamlining distribution involves the efficient use of all technologies included in the work of logistics and distribution centers.
- It should be mentioned that the scope of the planning of logistics and distribution processes is not limited only to the planning of production, transportation, or distribution.
- It covers the entire logistics and distribution process with all the elements.
- Distribution planning means the development of a feasible and viable plan of distributing end products from the producers (via logistics and distribution centers, warehouses, or crossdocking) to end users.
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- The micro-environment includes the company itself, its suppliers, marketing intermediaries, customer markets, and competitors.
- Marketing intermediaries refer to the people that help the company promote, sell, and distribute its products to final buyers.
- Physical distribution firms are places that store and transport the company's product from its origin to its destination.
- Each is important to the marketer because each has a highly different spending pattern as well as a different distribution of wealth.
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- The target market and the marketing mix variables of product, place (distribution), promotion, and price (the four elements of a marketing mix strategy) determine the success of a product in the marketplace.
- Reseller markets- All intermediaries that buy finished or semi-finished products and resell them for profit are part of the reseller market.