ADM 2320 Lecture Notes - Lecture 16: Franchise Agreement, Home Hardware, Brand Management
Document Summary
Traditional channels of distrubution: manufacturer to the consumer. E. g. producer goods, b2b or b2c, dell you go online and customize your laptop: manufacturer to retailer to consumer, manufacturer to the wholesaler to the retailer to the consumer. This is the classic one: manufacturer to wholesaler to jobber to retailer to consumer. Jobber is used in those industries where there is large number of wholesalers and small number of retailers perishible goodsgrocery goods products that can"t be held for 2 long jobber is a 2nd level additional wholesalers. Place utilitywhere they want (hot dogs at stadium) Possession and ownership utility; the risk they want (buy vs. lease) Break bulkquantities they want (# of gummy bears) Functional specializationskills and abilities (refrigeration; sales force; technology; access to global markets) Fewer transactions when you remove the middle-men you"re essentially taking their role if you remove middle-men its more expnensive put 1 middle man in picture you have variety channels are effecient.