Concept of Marketing Intermediaries

In: Business and Management

Submitted By A324237
Words 1151
Pages 5
Concept of Marketing Intermediaries
The third P of the 4 Ps of marketing is place. Marketing intermediaries, also known as resellers, buy products to resell at a profit. Intermediaries include certain types of resellers such as wholesalers and retailers, who purchase products from manufacturers, then distribute them to consumers and other buyers. A channel of distribution includes the locations where sellers market their products to the final consumer. This could be a combination of institutions through which sellers deliver their product (i.e., wholesalers, retailers, agents). There are many marketing functions that are handled by these intermediaries, including buying, selling, sorting, financing, storage, and transportation. The conventional channels of distribution involve many methods of getting products to the final consumer. These methods may include distribution from the manufacturer directly to the consumer, distribution from the manufacturer to a retailer to the consumer, and several others. From a strategic point of view, the term "supply chain management" connotes a holistic, systems approach to viewing product distribution as an integral component of partnering with vendors, suppliers, and various intermediary marketers.
When determining a channel of distribution plan for a company, the choice of channel may be influenced by the distribution coverage required, the degree of control the company desires, the total distribution costs, economies of scale, and channel flexibility. Distribution "can be viewed along a continuum ranging from intensive to selective to exclusive distribution" (Peter and Donnelly, 2007, p. 150):
 Intensive distribution − "the manufacturer attempts to gain exposure through as many wholesalers and retailers as possible" (Peter and Donnelly, 2007, p. 150). An example of intensive distribution would be marketing…...

Similar Documents

Concepts of Marketing

...Needs, wants and demands are the main concepts of marketing and the role of marketers is to satisfy people’s needs, wants, and demands. These key factors essentially influence human consumption. Because actually a product can be characterized on the basis of whether it meets people’s needs, wants and demands. That is why for marketers understanding of these factors is very important and all the time they should observe any changes in people’s needs, wants and demands. I think marketing should shape consumer’s needs and wants. I took this position because I believe that in fact nowadays marketing is creating consumers needs and wants by implementing various tools like researches, efficient application of the 4Ps of marketing and others. And in these essay I will distinguish people‘s needs, wants and demands and also I will try to justify my position. First of all, human’s needs are the most vital things that people need in order to survive. For example people need food, air, water, clothing, and shelter in order to sustain life and also have strong needs for creation, health, education, and entertainment. Needs are common to all and marketers can easily distinguish them. The need of hunger is similar for each person but the wants to satisfy this need will be different from person to person. I eat in order to satisfy my need for food but I prefer beshbarmak instead of pizza. Because the needs can be the same but the wants differ due to a diverse range of cultures, society,......

Words: 312 - Pages: 2

Marketing Concept

...MINOR ASSIGNMENT Task: 1500 word report Contribution: Individual Marks: 20% of unit total Deadline: Week 5 – Friday 28 December 2012 Task Description: Report Write a 1500 word report describing the 4 marketing mix elements and discuss how these are applied to retail petrol outlets. Purpose The assignment is designed to: * encourage you to think about how the marketing mix tools are used in the marketing process, * help you critically evaluate how marketing decisions can affect you as a consumer, * help you develop skill in conducting research online and using citations effectively. Assignment format The report must include: * Swinburne cover sheet – available under Other Materials on Blackboard * Title Page which must show title, unit code & name, student name & ID number, tutor name, word count & date It must be written in a professional manner and have been spell-checked and proof-read. Suggested report structure is: * Introduction - approximately 100 words on the focus of the report * Marketing Mix – approximately 300 words on each of the marketing mix elements * Conclusion – about 150 words summarising the key points of the report * References – 4-5 references including text book, appropriate business websites. Extra marks will be awarded for use of articles from academic journals which can be accessed via the Swinburne Library website. Do make use of appropriate headings – this helps organise your thinking as......

Words: 283 - Pages: 2

Concepts of Marketing

...Key Concepts covered in the CAM course up to Week 4 (and Assessment 2). In answering Assessment 2’s questions you would not be expected to use or draw upon material in Topic 5 and beyond. When answering the questions in relation to the Case Study please try to use and refer to appropriate concepts, principles and frameworks in the Topics 1 - 4 and Readings and which you feel are appropriate. You are not especially required to find further material, from journals or textbooks, to reference in your answers to the questions that have been set. You are not expected to find any other material on the company other than what is in the case. Do not rely upon solely re-presenting points, statements and reasons for things given in the case. You need to say why they are important and/or in what way they are an example of, the concepts, principles and frameworks that we have gone over in the course. Here are some of the chief ones: • Market orientation • Helping to match client and organisation interests and benefits, now and in future • Helping manage demand by understanding ‘how markets work’ • Marketing Mix – the 4Ps that management can have a large degree of control over • The three types of markets – buyer decision making and choice process differ in each • Understanding (potential) customers and clients - ‘through their eyes’ • Buying decision processes – individual, organisational • Needs and Wants • Segmentation: principle and processes • S T P –......

Words: 2341 - Pages: 10

Concept of Marketing

...1. The Concept and Process of Marketing Marketing can be defined as a blend of behavioural and management sciences which are powered by intuition, creativity, inspiration and innovation. Marketing requires a scientific approach for designing newer products. It requires skills for identifying newer channels. Marketing also immense conceptual clarity which gives an individual the ability to translate thought into action. 1.1. Elements of the Marketing Process The objective of all marketing processes is to make profits for an organization. Marketers design marketing strategies based on information gained through marketing research. Through marketing research, marketers make decisions about their target markets, their offerings to the market and the kind of relation they wish to establish with the customer. Many experts have different views about the elements of the marketing process. The key elements of the marketing process are illustrated in Figure 1. Elements of the Marketing Process Figure 1 Source: Made by Student (2012) Needs and Wants: A human ‘need’ is felt when an individual is deprived of one or more basic satisfactions. People need food, shelter, clothing etc. Needs are the basics of human existence. They cannot be created by any marketer. Wants are desires for something that satisfies needs. For example: I need food but I want a burger. The need for food is a basic human desire. The want for a burger is dependent on......

Words: 919 - Pages: 4

Intermediaries in International Trade and Marketing

...INTERMEDIARIES IN INTERNATIONAL TRADE AND MARKETING In today’s increasingly globalized world, international marketing is becoming more and more important day by day. When entering this important phase, one of the main dilemmas of manufacturing company becomes, whether doing the export by themselves, or outsourcing the service will be more advantageous. While some companies prefer direct trade and marketing in which the transactions are only done in between the manufacturer and the final retailer; some others proceed indirectly, involving a middle-man before the final buyer. Direct marketing requires a total dedication of time and resources, and finances to identify opportunities in a foreign market. The manufacturer, all by itself, is responsible for market research, planning and distribution of the product, which is expected to produce satisfactory sales results. For large companies with time and resources to devote to exporting, direct marketing might be a feasible option. Also in the long run it may be more profitable for a company to build relationships themselves rather than do so through a third party, in order to improve personal relationships in export. As for small sized companies, marketing through intermediaries can be more feasible and a safer first step in exporting. By using intermediaries, small firms may have a representation in foreign markets without a serious commitment of time and money as the intermediary takes on all responsibilities itself. And......

Words: 303 - Pages: 2

Marketing Concept

...Marketing an introduction Mark O’Donnell Assessment Task 1 The Marketing Concept * Finding out what the needs and wants of a specific target market are, and then meeting them. “The right product, in the right place, at the right price, and at the right time”. * Focusing on customer needs before developing the product * Aligning all functions of the company to focus on those needs * Realizing a profit by successfully satisfying customer needs over the long-term How it relates to Microsoft * The customer wants easy to use products that are affordable in today’s markets. * Microsoft target customers in both the Business and Consumer environment. They use customer feedback and bug reports on existing products to help determine what the customer actually wants, and then design future products accordingly to meet those needs. * A Recent survey conducted by techspot.com shows that Microsoft has a 76/100 customer satisfaction rating and profit for the last quarter was $5.3 Billion. * Price advantage has been effective and consistent with Microsoft's original goal which was to ensure that computers running Microsoft software are affordable and possible for everybody. Micro Environment * Micro environmental factors or controllable variables, are those which the firm can directly control. Examples of this are: product, price, place and promotion. How it relates to Microsoft * Product: Microsoft offers more value to their......

Words: 1416 - Pages: 6

Marketing Concepts

...this ensures that no legal matters are taken against the business, how black-label brands hold a 10% share of the market holding a threat to other business with the ability to charge lower prices and committing more shelf space to their own fruit juices and how important it is for business to follow customer trends as they hold the purchasing power. The report also compares and contrasts Boost Juice Bars and Spring Valley Juice marketing strategies, recommending that Boost Juice Bars continue on with their strong marketing mix and Spring Valley focus on their customer trends and target market. The report also recommends the industry swap to BPA free plastic bottles to better enhance their brand and health and safety of their consumers. Table of Contents 1. Introduction …………………………………………………………………………………3 2. Fruit Juice Industry Overview …………………………………………………………3 3. Environmental Analysis 3.1 Fruit Juice Industry Warned …………………………………………………4 3.2 Private-label Brands to Take Over …………………………………………5 3.3 Consumer Trends …………………………………………………………6 4. Marketing Analysis 4.1 Defining the Target Markets …………………………………………………6 4.2 Product Offering …………………………………………………………………7 4.3 Target Consumers with Promotion …………………………………………7 4.4 Availability on Products …………………………………………………………8 4.5 Price …………………………………………………………………………9 5. Recommendations 5.1 Spring Valley to Focus on Consumer Trends …………………………………9 5.2 Spring Valley to Broaden their Target Market ………………………………..10 5.3......

Words: 4923 - Pages: 20

Marketing Concepts

...Marketing Concepts Marketing is the process of communicating the value of a product or service to customers, for the purpose of selling that product or service. By using the marketing process, companies are able to meet the needs of their customers. Each company works differently, therefore, there are many different approaches to marketing. The production concept is the earliest marketing concepts, dominating business thought from the beginning of capitalism through the mid 1950s (Garza, n.d.). This concept was practiced by early industrials, and became a standard practice. Based on the fact that consumers prefer products that are easily available and affordable, it emphasizes large scale production at a low cost. In order to implement this concept, companies concentrate on low costs, mass distribution, and high levels of production. Ford was one of the early champions of this concept with the Model T and his efficient production line (Henley, n.d.). Today, large retailers are prime examples of organizations that are driven by the production concept. They focus on giving consumers affordable products that might be relatively basic in design but are readily available. Companies that operate using the production concept often enjoy continual, consistent sales volumes: consumers remember the brand name and know that they can find those products in many locations. However, organizations that follow the production concept focus on mass distribution and efficient......

Words: 1090 - Pages: 5

Marketing Concept

...buyer or user, or both. DEVELOPMENT OF THE MARKETING CONCEPT AND THE DISCIPLINE OF CONSUMER BEHAVIOUR The field of consumer behaviour is rooted in the marketing concept, a business orientation that evolved in the 1950s through several alternative approaches towards doing business referred to, respectively, as the production concept, the product concept and the selling concept. The production concept assumes that consumers are mostly interested in product availability at low prices; its implicit marketing objectives are cheap, efficient production and intensive distribution. This orientation makes sense when consumers are more interested in obtaining the product than they are in specific features and will buy what is available rather than wait for what they really want. Today, using this orientation makes sense in developing countries or in other situations in which the main objective is to expand the market. The product concept assumes that consumers will buy the product that offers them the highest quality, the best performance and the most features. A product orientation leads the company to strive constantly to improve the quality of its product and to add new features that are technically feasible without finding out first whether or not consumers really want these features. A product orientation often leads to ‘marketing myopia’, that is, a focus on the product rather than on the consumer needs it presumes to satisfy. Marketing myopia may cause a company to ignore crucial......

Words: 8990 - Pages: 36

Marketing Concept

...Marketing Strategy…… KEY CONCEPTS to review for ETS exam…. Marketing Strategy: Key Concepts 1 Concepts, key terms linked to dictionary Link to Discussion Board What is Marketing? Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services that satisfy individual and organizational goals. --- AMA Product is the platform for attracting customers. All organizations are in the business of attracting customers. Can the above two statements be challenged? Is marketing selling OR does it reduce the need for selling? Discussion Topic: Challenge the above statements, using your own experiences as reference. What are markets? Exchange, division of labor, positive sum relationships, barter, money reduces friction. Evolution of markets 1. Traditional bazaars 2. Separation of supply and consumption 3. Mass Markets / Media 4. Target Markets / Niche Media 5. Electronic Markets: Meta Markets Evolution of the Marketing Concept 1. Production Concept Demand for goods and services > Supply ... therefore consumers gladly purchased what was being produced. Producers have a captive market. Investment on increasing the efficiencies of production had the greatest impact on company profitability. Thus smart businesses focused on increasing productivity, rather than understanding the consumer. Henry Ford's quote: "The customer can......

Words: 10666 - Pages: 43

An Analysis of the Marketing Concept of Nestle

...and for nutritional reasons (The World of Nestle, 2006). 1. Identifying two examples of marketing concept in Nestle Before any company would begin any marketing process, it must develop a marketing concept to identify how it going to address the wants and needs of its customers. Kotler & Armstrong (1996) defined marketing concept as a marketing philosophy that sees the consumer or client as the central focus of all the activities of an organization. In this regard (Nestle Good Food, Good Life 2010) mentions that Nestlé’s priority is to bring high quality, safe, and nutritious foods and beverages to people wherever they are and whatever their needs The company has developed many approaches in line with this outlining mission. Two examples of this marketing concept are elaborated below. (a) Putting the customer first. According to The World of Nestle (2006), Nestle has bound itself to build all its marketing strategies on consumers' trust in the company. It is reported that Nestle sells over a billion products everyday as a result of the company focussing on the customers by getting closer to them as possible. The idea behind is to have an understanding of people of all ages (babies, toddlers, growing children, teenagers, adults and old people) in order to become aware and appreciative of all their needs and motivations. The main concept underlying all its marketing ideas is built upon the basis of bringing the 'consumer at the heart' of everything the......

Words: 3332 - Pages: 14

Marketing Concepts

...more than one of the same console. Thus, the console’s market is limited and difficult to expand over time. In contrast, there could be hundreds of different game titles available for a particular console brand and model, and most consumers buy multiple game titles. As a result, most consumers will eventually spend much more money in buying games than buying consoles. As a general rule of thumb, most console manufacturers try their best to make their consoles as popular as possible in order to boost sales of game software. A low price strategy is commonly used in promoting videogame consoles. However, behind the low price strategy are significant and inevitable initial losses in technology development, manufacturing-related costs, and marketing expenditure. Not many companies are able to carry those enormous expenses before they begin to make money with their videogame title sales. As history depicts, only two sorts of companies, the traditional gaming companies (SEGA and Nintendo) and corporations with strong capitals (Sony and Microsoft), had succeeded in operating console businesses. A commanding financial resource is a critical condition for a firm to enter the videogame industry. The second entry barrier is the lack of a new or reasonably untapped market niche. According to a study conducted by Entertainment Software Association in 2004, more than 90 percent of video console gamers are less than the age of 46. Currently, since both Sony and Microsoft sell their......

Words: 2550 - Pages: 11

Marketing Concepts

...Classic Airlines and Marketing Classic Airlines is known as the world’s fifth largest airlines, commands a fleet of more than 375 jets that serve 240 cities with more than 2,300 daily flights. In the 25 years since its inception, Classic has grown substantially with 32,000 employees. As profitable as it is, Classic like any other airlines is no stranger to the challenges as travel industry continuing to face challenging times. Consumers budgets are tight and cutting back on unnecessary expenses and in most cases finding an alternative in which they are can buy cheaper seats and better customer service. Classic Airlines is facing the challenges on how to win back the members of the classic rewards that the company offer and how to keep the frequent fliers customers that they have retained to choose Classic over the competitor. This paper will explain some of the marketing concepts to beef up Classic’s frequent flier program with methods that will demonstrate a measurable return on investment (ROI), the marketing challenges it faces, and its current corporate value. Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefits the organization and its stakeholders. Marketing deals with identifying and meeting human and social needs (Kotler & Keller, 2006). Financial success often depends on marketing ability. Finance, operations, accounting,...

Words: 737 - Pages: 3

Marketing Concepts

...The role of marketing has changed over time; beginning with the simple trade era, a time when everything was either made or harvested by hand (White, 2010), to the Social Media Marketing Era. The following eras will be described using different business types to explain what companies did during the era; Production Era, Sales Era, Marketing Concept Era, Market Orientation Era, Customer Experience Management Era, and Social Media Marketing Era. The production era began in the mid 1800s and lasted for 60 years. The revolution of mass production began during this era and business’ main focus was on selling their products rather than satisfying customer needs (Crane, 2014). The Ford Motor Company played a big part in the production era, this is when Henry Ford introduced the first moving assembly line. The moving assembly line at the Ford Motor Company was able to to meet the ever growing demands of a motorized vehicle by producing one Model T vehicle every 24 seconds (History, 2009). The main focus of The Ford Motor Company was the amount of vehicles the assembly line could produce and sell; this was done by creating using production plants where the parts being used to produce the vehicles could be interchangeable on the assembly line, and the ability of the assembly line to move instead of being static. After the production era came the sales era, beginning in the 1920s and lasted until the 1960s. Industries, like the flour industry, were producing more than customers......

Words: 2846 - Pages: 12

Concept of Marketing

...fancies of these customers in order to survive in these increasingly competitive markets. Organizations that do not act on this dictum have suffered the loss of market share or worse, total annihilation. Such dire consequences have awakened many organizations to rethink the way they see marketing. Thus, there is urgency for an organization (be it products or service providers) as a whole to develop appropriate holistic customer-focused strategies to ensure that the customer remains at the core of their organizational thinking. With the rapid advancement of information technology (especially the rise of the Web) and the increasing difficulties of meeting customer’s needs and wants (for example, their expectations of 24 / 7 customer service especially for online transactions), there is a shift from a traditional marketing approach to customer targeted marketing. Many organizations and marketing consultants are emphasizing the need to allocate more funds to apply new-found knowledge of consumer behavior in new products development, build better customer relationships through customer loyalty and retention programs. This purpose of this paper is to raise the awareness of the need to concentrate marketing efforts towards the customer rather than the inward-looking traditional product-focused arrangement. And more importantly, the paper will shed light on how an organization could go about in making this important transition in this current competitive market....

Words: 259 - Pages: 2