III About market structures

Introductory remarks The difference between the channels of distribution and marketing channels (broader term that includes both the flow of information). The basis of the concept - association of different market structures in furtherance of common interest. The process of exchange is performed within the marketing channel (vertical dimension) between members and at certain levels (horizontal dimension)

Participants in the exchange and analysis of the same The primary participants: Manufacturers, Wholesale, Retail, Consumers.

The secondary participants: Employers for marketing research, companies engaged in storage and transport, insurance companies, financial institutions, advertising agencies, consulting firms

Distribution of the primary activities of participants: Physical possession of the goods, Taking ownership of the goods, Negotiation, Activities related to the promotion, Risk taking, Payment

Sources of power: The ability to control the marketing strategies of the other members lie in profit margin Options manufacturers to maintain the popularity of some brands with consumers (brand loyalty) Options available to wholesalers and retailers

Manufacturers as participants in the exchange differ in: The character and degree of development of the final product, Economic activity in which they operate, Technology, Manufacturing process.

Basic marketing strategies manufacturer affecting the other participants: Extending the product assortment (80:20 rule) Changes the dynamics of production Emphasizing the importance of total quality

The most important functions of trade: inter-local, intertemporal, Interpersonal The most important tasks of Trade: Keeping adequate assortment policy Keeping competitive pricing policy, Choice of appropriate / attractive locations Retailers as participants in the exchange - increased their importance in proportion to the increase in the physical volume of traffic. Are characterized by: the immediacy of sales, the importance of location, small and average sales per product, high participation of impulsive purchases, high seasonal influence.

Wholesalers as participants in the exchange: Purchase goods for resale continue its organizational buyers, retailers and other customers who use the goods for further resale or productive consumption. Specifics of wholesale: possibility of representing several manufacturers or suppliers of high geographic concentration

Choosing a partner in trade The process of selecting partners: Finding a partner application of selection criteria Establishing the current channel members