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Markets Defined

Markets Defined A market is an institution or mechanism that brings together buyers (demanders) and sellers (suppliers) of particular goods and services. A market may be local, national, or international in scope. Some markets are highly personal, face-to-face exchanges; others are impersonal and remote. Product market involves goods and services. Resource market involves factors of […]

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Macroeconomics and Microeconomics

A. Macroeconomics examines the economy as a whole. 1. It includes measures of total output, total employment, total income, aggregate expenditures, and the general price level. 2. It is a general overview examining the forest, not the trees. B. Microeconomics looks at specific economic units. 1. It is concerned with the individual industry, firm or […]

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Types of utility distribution offers

Distribution-activities that make products available to customers when and where they need them. A channel of distribution or marketing channel is a group of individuals and organizations that directs the flow of products from producers and customers. Marketing Intermediaries link producers to other intermediaries or to the ultimate users of the product. Operate between the […]

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Merchant Wholesalers

Merchant Wholesalers Take title. Account for approximately 83% of wholesalers, 50% of wholesale sales. Employ 4.5 million people. Two types: Full Service Wholesalers-offer widest possible range of functions. Categorized as: General Merchandise-wide mix (unrelated), limited depth. Limited Line-only few products but an extensive assortment. Specialty Line-narrowest range of products. Rack Jobbers-are specialty line that own […]

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Agents and Brokers

Agents and Brokers Negotiate purchases, expedite sales but do not take title. Functional middlemen, that bring buyers and sellers together. Compensated with commission. Agents represent buyers and sellers on a permanent basis. Brokers represent buyers and sellers on a temporary basis. 10.4% of wholesalers total sales volume. Manufacturers Agent-over half of all agents. Represent two […]

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Contractual VMS

Contractual VMS Most popular VMS, interorganizational relationships formalized through contracts that spell out each members rights and obligations. IE McDonald’s and KFC. Franchise organizations 1/3 retail sales and 500,000 outlets. Wholesaler sponsored, IGA stores-independent retailers band together under contractual leadership of a wholesaler. Supervalue Stores, largest food wholesaler in the US, offers a broad package […]

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Administered VMS

Administered VMS Channel members are independent with a high level of interorganizational management by informal coordination. Agree to adopt uniform accounting policies etc., and promotional activities. One Channel member dominates, has a channel leader. Examples: Wal Mart Toys R Us Kellog Pepsi Coke GE P&G McKesson Corp JC Penney Campbell Channel Leader-Effectiveness of channel hinges […]

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Corporate VMS

Corporate VMS More than one stage of the distribution channel under one ownership, IE supermarket chains that own processing plants and large retailers that purchase wholesaling and production facilities. Examples: Sears Sherwin Williams Giant Foods Gallo Banana Republic Hallmark The Gap Oil Companies

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Vertical Marketing Systems

Vertical Marketing Systems The traditional view of channels focuses on buyers and sellers in direct contact. IE don’t look beyond the next level. The systems view focuses on a framework for the whole distribution system. A Vertical Marketing System (VMS) is a marketing channel that a single channel member coordinates. The channel member manages channel […]

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Types of Merchandise Offering

Types of Merchandise Offering Merchandise mix, breadth (variety); depth (selection in product) Limited-line stores—–> Sporting Goods Stores etc. Single-line stores——> Specialty Retailers Foot Locker, Radio Shack…Category Killers…Borders Books, Toys R Us etc. General merchandise stores Department stores Macy’s, Strawbridge & Clothier etc. Competition from discount stores and specialty have put pressure on department stores. Some […]

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