MGMT 1 Chapter Notes - Chapter 15: Reverse Logistics, Direct Selling, Supply Chain
Document Summary
Marketing intermediaries: organizations that assist in moving goods and services from producers to businesses to consumers. Channel of distribution: whole set of marketing intermediaries that join together to transport and store goods in their path from producers to consumers. Agents/brokers: marketing intermediaries who bring buyers and sellers together and assist in (cid:374)egotiati(cid:374)g e(cid:454)(cid:272)ha(cid:374)ge (cid:271)ut do(cid:374)"t take title to the goods. Wholesaler: marketing intermediary that sells to other organizations. Intermediaries add costs and should be eliminated according to economists. Add value according to marketers: value greatly exceeds cost. Marketing intermediaries can be eliminated but its activities cannot. Intermediary organizations survived because they perform marketing functions faster and more cheaply. Intermediaries adds costs to products but these costs are more than offset by values created. Utility: want-satisfying ability that organizations add to goods. Ti(cid:373)e utilit(cid:455): addi(cid:374)g (cid:448)alue to produ(cid:272)ts (cid:271)(cid:455) (cid:373)aki(cid:374)g the(cid:373) a(cid:448)aila(cid:271)le (cid:449)he(cid:374) the(cid:455)"re (cid:374)eeded. Place utility: adding value to products by having them where people want them.
