Establish channels for different target markets and aim for efficiency, control, and adaptability. Kotler on Marketing

Marketing channels Keys:g — i — d — a — c — e — f — b — h — j

Marketing Channels g) Some manufacturers do direct marketing, selling their goods directly to the end-users.  i) They can reach these consumers with their own door-to-door sales reps; by direct mail (sending catalogues, leaflets, brochures, order forms, and so on by post); by telephone selling; or by advertising and receiving orders via the Internet.

d) Most producers, however, use a marketing channel involving one or more specialized intermediaries. a) If there’s only one intermediary, it could be a dealer or retailer for consumer goods, or a sales agent or broker for industrials goods. C) More complex channels add further intermediaries such as transport companies, wholesalers, and independent distributors.

 e) Of course, the choice of which physical  distribution channels to use should not come at the end of the marketing process.  f ) On the contrary, according to the logic of marketing, companies should begin with considerations such as the location of target customers, and work back to raw materials sources and manufacturing.  b) In other words, decisions about the location of manufacturing and assembly plants and warehouses, inventory levels, and transport methods should ideally begin with the needs of customers.

h)These are essentially a short delivery time and a guarantee that products arrive in good condition. j) Yet the demands of retailers and customers clearly also have to be balanced against excessive inventory costs, as large inventories tie up capital and increase the risk of spoilage [5spCilidV] or obsolescence [7CbsE5lesns].

Marketing Channels About the concept Major marketing channels Marketing channel levels Role of marketing channels Channel-design decisions

About the concept One of marketing mix is Place. Place is also known as marketing channels/intermediaries or distribution. A marketing channel is the route taken by a product as it moves from manufacturer/ service provider to end user/ ultimate consumer. The aim of the third ‘ p ’ of the marketing mix is for customers to have convenient and effective access to goods and services.

Major marketing channels … 1 Middlemen/ intermediaries are a set of people and firms that operate as links between manufacturers and their ultimate customers. Middlemen are often classified according to whether they: physically handle products Or take title to the products

Intermediaries A business that helps producers get their products into the marketplace. They take title to the merchandise as it moves from producer to customer, or they actively assist in the transfer of ownership.

Major marketing channels … 2 A marketing channel involves: a producer ultimate consumers business users intermediaries  An intermediary involves: Wholesalers Agents  Commission agent ( 代理人 )- does not take title of the goods.  Stockist agent ( 代售商 )- hold ‘ consignment ’ ( 寄售 )stock Retailers Internet

Intermediaries The role of an intermediary includes: negotiations between buyers and sellers assisting in the transfer of ownership taking physical possession of goods storing products in a warehouse acting as the transport and merchandise agent aiding in the creation of utilities (time, place, possession, form).

Major channels of distribution

Consumer Marketing Channels Wholesaler Jobber Retailer Consumer  Retailer Consumer  Manufacturer 0-level channel Wholesaler Retailer Consumer  Mfg 2-level channel Mfg 3-level channel 1-level channel Manufacturer

Major channels of distribution

Add appropriate words from the text to these sentences. 1. direct 2. catalogue 3. consumer 4. industrial 5. target 6. location 7. delivery 8. inventory

Exercise 3  Down: 1. distributor 2. agent 3. sales rep  Across: 1. dealer 4. end-user 5. retailer 6. broker  9. wholesaler