MKT 100 Lecture 22: Functions of Intermediaries and Intensity of Distribution

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Mary Foster

Document Summary

Important part of the distribution channel because they perform functions the manufacturer cannot do themselves -> they provide value for the consumer as we travel through the distribution chain. Assorting: creating product assortments from several sources -> the manufacturer ships orders that are too big to fill a single retailer thus the intermediaries store the orders from several manufacturers then shares it amongst several retailers. Clothing retailers selling an assortment of clothing (pants, socks, shirts) Sorting: intermediaries purchasing in large quantities then breaking it into smaller amounts desired by customers -> intermediaries sort each product category into smaller units to distribute them to individual retailers (in the quantities they can handle) Transporting: physically moving the product to customers. Storing: assembling and protecting products at a convenient location in order to offer better customer service. Small retailers may not have the funds to cover inventory at the start of the season to which intermediaries can cover it.