Textbook Notes (362,766)
Canada (158,052)
BUS 343 (120)
Todd Green (11)

Bus 343 - Classnote 9.docx

3 Pages
Unlock Document

Simon Fraser University
Business Administration
BUS 343
Todd Green

BUS 343 November 22, 2010 Lecture 5 Channels and Supply Strategy Chapter 10 Distribution  Channel of Distribution: The series of firms or individuals that facilitates the movement of a Channel (352) product from the producer to the final customer  Channel Intermediaries: Firms or individuals such as wholesalers, agents, brokers and retailers that help move a product from the producer to the consumer or business user  Manufacturers, wholesalers, retailers Distribution  3 Types of distribution systems: Systems (353)  Conventional Marketing System: A multiple-level distribution channel in which channel members work independently of one another  Goals: To build demand, reduce costs, improve customer satisfaction  Vertical Marketing System: A channel of distribution in which there is cooperation among members at the manufacturing, wholesaling and retailing levels  Work together and depend on each other  Administered VMS: Members remain independent but voluntarily agree to work together  Corporate VMS: Firms have ownership control of some or all of a distribution channel  Contractual VMS: Cooperation is enforced by contracts, legal agreements that spell out each member’s rights and responsibilities and how they will cooperate  Retailer Cooperative: Group of retailers that establish a wholesaling operation, must purchase a certain % of inventory from cooperative operation  Wholesaler Sponsored VMS: Wholesalers get retailers to work together under their leadership in a voluntary chain  Franchise Organizations: Franchiser allows franchisee to use the franchise name and provide services to franchisee, in return a % of the revenue from franchise owner  Horizontal Marketing System: An arrangement within a channel of distribution in which two or more firms at the same channel level work together for a common goal Functions of Distribution  Form Utility: All activities used to change the appearance or composition of a good or service with Channels (355) the intent of making it more attractive to potential and actual users  Time Utility: All activities that increase satisfaction by making products available at the time consumers want them  Place Utility: Increased usefulness created by making a product available at a location preferred by consumers  Information Utility: The value given to a product that provides the user with useful information  Possession Utility: Increased usefulness created by making it possible for a consumer to own, use and consume a product  Create efficiencies by reducing the number of transactions necessary to transport good  Bulk Breaking: Dividing larger quantities of goods into smaller lots to meet the needs of buyers  Creating Assortments: Providing a variety of products in one location to meet the needs of buyers  Facilitating Functions: Functions of channel intermediaries that make the purchase process easier for customers and manufacturers Composition and Structure of  Must see table 10.1 (358) Channels (357)  Wholesaling Intermediaries: Firms that handle the flow of products from the manufacturer to the retailer or business user  Independent intermediaries: Channel intermediaries that are not controlled by any manufacturer but rather do business with many different manufacturers and many different customers  Merchant Wholesalers: Intermediaries that buy goods from manufacturers (take title from them) and sell to retailers and other business-to-business customers  Full-Service Merchant Wholesalers: Provide a range of services to their clients – delivery, credit, product-use assistance, repairs, advertising, promotional support and market research  Limited-Service Merchant Wholesalers: Provide limited (fewer)
More Less

Related notes for BUS 343

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.