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Merchandise is generally stored on racks above required for handling and stocking. In addition, sales are processed through

2) Explain the role of channel intermediaries in the product distribution process. Why is their role important?

This paper is intended to shine a light onto distribution channels, both direct and indirect, as well as, provide a better understanding of channel levels. It will also deal with the different channel organizations, including conventional, horizontal, vertical and multichannel marketing systems.

As mentioned in an earlier assignment, there are three main types of distribution channels. The first is the channel that goes from the producer, then to the wholesaler, then to the retailer or sells to the consumer. The second channel starts with the producer who sells straight to the retailer, who then sells to the consumer. The third channel goes directly from the producer to the consumer. Channels one and two are classed as indirect marketing channels, whereas channel three is a direct marketing channel as it goes straight from producer to consumer.

Question 11. 11. (TCO 4) One of the valuable services that a wholesaler might perform is _____, in which it receives large shipments from the producer and then sells smaller quantities to retailers. (Points : 5)

i. With regards to suppliers delivering goods, they simply sent the goods without any prior notification. This led to a variable rate of arrival of stock in the ware houses.

Consignment inventory usually involves the supplier, placing inventory at a customer’s location without getting rid of its ownership of the inventory. Since the owner retains the ownership of its products the customer does not pay until it is sold or used. However, before we examine how Fastenal can benefit from our proposed consignment program it is important to first examine some potential market of interest.

When you think wholesale warehouse, one word comes to mind—vast. Or maybe, enormous. Or perhaps, titanic. Or some other variation of “very-very-large.” Sam’s Club and BJ Wholesales, with their voluminous ceilings and piles of 64 ounce mayonnaise jars that you can only buy in packs of three, welcome you to ‘Wholesale Land’. The immutable law of this land is to maximize profit; that is, to increase sales or to decrease costs. Multi-billion dollar corporations categorize employee wages and insurance as costs and cut them in an effort to maximize

The companies use mall based and mall concept stores to distribute their products. Also, customers can order products online from company websites.

This has proved to be a very successful tactic for companies in marketing. Marketing channels are also used by companies to reach their consumers. They use three types of marketing channels which are communications, distribution and service channels. Communications is important to get the company's message out to the public and this could be in many forms such as the radio, television, the internet, posters and the like. They also need to distribute their products to the consumer and this means they will need a physical location like a store, or be a wholesaler and have others retail your products for you and also sell your products on the internet. Service channels are needed to effect transactions with the consumers and these could be banks for credit card purchases and transportation companies such as UPS to deliver the products to homes and businesses.

The strategy for Costco was that the company continued to buy merchandise at volume discounts from manufacturers, rather than distributors. The stock is usually shipped directly to selling warehouses to minimize freight costs. Stocked items are placed directly onto the selling floor or are still stacked on their pallets, reducing handling and stocking labor. The number of sales and service employees is also minimal, with a large percentage of the employees holding part-time status. Warehouses are almost entirely self-service, from finding and buying items, to loading them into a customer's vehicle. (Miller, 2011)

When offers of reduced pricing are accepted for equipment, meeting delivery expectations becomes an important part of enhancing the customer experience to maintain satisfied loyal customers. An inventory specialist in the current distribution center would be given the additional task of segregating and maintaining inventory levels to meet the needs of the customer loyalty department.

Marketing Intermediaries: (Marketing intermediaries supports the organisation to sell, promote, and distribute its good to the operators. Intermediaries incorporate delivery firms, resellers, and marketing agencies).

„h It results in quicker delivery time due to the faster distribution cycle of products being shipped directly from the wholesalers.

Marketing channels are the arrangement of intermediaries (wholesales, retailers, and the like) that the firm uses to achieve its marketing objectives. Is the problem discussed in Handy Andy’s marketing channels? Why or why not? Utilizing the factory distributor