Mrs. Brink Marketing Principles Intermediaries Mrs. Brink Marketing Principles
Who is an intermediary? Intermediaries=channel members who take ownership (or represent ownership) of products as they move through channel Agents, brokers, retailers, wholesalers TRANSPORTATION AND STORAGE ARE NOT INTERMDIARIES!! Planes, trucks, rail roads, warehouses and distribution centers
Who are the intermediaries? Producer Retailer Wholesaler Consumer Agent Distribution Center Trucking company provide physical distribution
Brokers v. Agents Agents Brokers Represent a company—usually only one! They sell products to wholesalers, retailers and consumers Have on going relationships with clients Brokers Hired out—independent from the business but are brought into represent the seller Can negotiate terms and represents several non competing businesses Make the deal and then are done with clients
Distribution Centers v. Warehouses NOT INTERMEDIARIES, no ownership or representation involved Distribution centers—repackage, store and distribute products as orders come in Warehouses—sole purpose is to store inventory until it is time for it to be distributed BOTH ARE AN IMPORTANT PART OF LOGISTICS
Physical Distribution Physical distribution is the actual movement of products from point A to point B Also referred to as logistics—the planned out physical distribution of products Often times businesses out source other companies to fulfill physical distribution FedEx UPS USPS
This is happening in your town! Op5 Inc. on Chastain Road by KSU
Case Study Op5
How they operate Agent: represent GP products and sell to retailers/wholesalers Distribution Center
Products from Georgia Pacific
From GP to Op5
Orders
Tracking Inventory
Repacking and Shipping Out
FedEx
Shipping Out
From Op5 to FedEx
FedEx Ground/Air