Introduction to Business (BUS 201)

Marketing Intermediaries -- Organizations that assist in moving goods and services from businesses to businesses (B2B) and from businesses to consumers (B2C). They are called intermediaries because they’re in the middle of a series of firms that distribute goods. Channel of Distribution -- A group of marketing intermediaries that join together to transport and store goods in their path (or channel) from producers to consumers.

Agents and Brokers -- Intermediaries who bring buyers and sellers together and assist in negotiating an exchange but do not take title to the goods. Wholesaler -- An intermediary that sells products to other organizations such as retailers, manufacturers, and hospitals. Retailer -- An organization that sells products to ultimate customers.

Utility -- The want-satisfying ability, or value, that organizations add to goods and services by making them more useful or accessible to consumers. Six types of utilities: 1. Form 2. Time 3. Place 4. Possession 5. Information 6. Service

Form Utility -- Changes raw materials into useful products; producers generally provide form utility. -North End Coffee Roaster turns RAW COFFEE BEANS into DRINKABLE LIQUID COFFEE Time Utility -- Makes products available when customers want them. -Lazz Farma remains open 24 hours everyday and sells medicines to people 15-5

Place Utility -- Adds value to products by placing them where people want them. -BRAC Bank has many ATM booths across Bangladesh in different places Possession Utility -- Helps transfer ownership from one party to another, including providing credit. -You can buy foods from KFC using credit/debit card even if you do not have cash. KFC helps you to transfer ownership of product without paper money. 15-6

Information Utility -- Opens two-way flows of information between marketing participants. From you can compare the airlines prices before purchasing the ticket Service Utility -- Provides service during and after a sale and teaches customers how to best use products. -Unilever Pure It provides after sales service and warranty to consumers 15 -7

Intensive Distribution -- Puts products into as many retail outlets as possible. Specifically for convenience goods like candy, cigarettes, biscuits etc. Selective Distribution -- Uses only a preferred group of the available retailers in an area. Specifically for shopping goods like clothing, furniture, appliances etc. Exclusive Distribution -- The use of only one retail outlet in a given geographic area. Specifically for specialty or luxury goods like skydiving equipment, diamond/platinum jewelery etc

Electronic Retailing -- Selling goods and services to ultimate consumers over the Internet. Telemarketing -- The sale of goods and services via the telephone. Vending machines dispense convenience goods when consumers deposit sufficient money. 15-9

Direct Selling -- Selling goods and services to customers in their homes or workplaces. Multilevel marketing uses salespeople who work as independent contractors. Commissions created for upliners and from downliners. Direct Marketing -- Any activity that directly links manufacturers or intermediaries with ultimate customers. Ex: direct mail, telemarketing, catalogue sales, online marketing etc

That’s All! Thank you!