Ch 2 The channel participant

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Ch 2 The channel participant

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? The channel participant overview

• 1. Definition
• It refers to all organizations and
  institutions related to distribution .

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2. Classification

• creterionprice negotiation and
  ownership transfer

manufacturermiddleman(wholesaler and retailer
)consumer
Membership participant
Marketing channel participant
Storage and transport organizationmarket
research organizationadvertisement agentbank
insurance organization
Non-membership participant
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? Producer or manufacturer

• 1. Definition and type
• 2. play a part in
• Channel source
• the main organizers
• the main innovator .
• 3. Advantages and disadvantages
• case TCL Lenovo Wahaha

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??Wholesalers

• 1. Wholesale and wholesalers
• Wholesale refers to the marketing activities that
  provide all goods and services to those operating
  for resale or other commercial use.
• Wholesalers are those organizations and
  individuals primarily engaged in the wholesale
  business.

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Decision process should intermediaries be used?

• Use
  intermediaries ?
• no yes
  
• sell directly what type of
  intermediaries?
• 
  how much?
• create
  channel structure

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2. The classification and characteristics
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• The difference between agent and the deal mainly
  manifests in the following three points
• Both sides of the deal have trade relationship
  Both sides of the agent have agent relationship .
• Dealers stand for their own merchandise , and
  agents on behalf of manufacturers in sales and
  contract .
• Dealers' income is from of the price gap between
  purchase and sale, but agents' income is
  Commission.

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3? wholesalers role

downstream Provide products Customer
service financing Classification convenience Bulk
purchase Suggestion and technology support
Marketing task for wholesaler
upstream Market coverage Sale
contact inventory Deal with order Market
information Customer support
result
More effective channel and profit of wholesaler
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discussion

• Wholesalers' present situation and outlet?

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??retailing

• What do you have already known?

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• 1?retail merchant's concept
• Retailing provides the commodities for the
  consumer uses. But these commodities are not used
  in the productive consumption either the resale.
• Ultimate consumers are mainly individual or
  family
• Retail sales include not only products retail
  sales, but also service Is not only the store
  retail sales, but also non-store Is not only the
  retail merchant, but also the manufacturer?the
  importer?wholesaler's retail business.

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2. Retailer significance

• Macro-economic significance
• Intermediate perspective
• Micro- significance

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3. Retailer classification

• According to property rights
• Independent store?chain store?franchising
• According to retailing mix store non-store
• According to the relationship of Store
• Isolated shops, commercial Street, Shopping mall.

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• New perspectives
• 1. channels service output retailing
• 2. the target customers and customer behavior of
  different retail formats
• 3. the operation modes of Retailing

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Customers channel needs( service outputs)

• 1. bulk-breaking
• 2.spatial convenience
• 3.waiting or delivery time
• 4. assortment and variety
• 5. Service Backup
• How do you dig Customer needs?

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• 2?Retail service outputs P404

form Gross profit/turnover batch convenience time variety(breadth) category(depth)
Department store Gross profit yes middle short broad middle/shallow
Franchised shop Gross profit yes middle short narrow deep
Convenient shop Gross profit/turnover yes high short broad shallow
Category killer turnover yes low short narrow deep
supermarket turnover yes low short broad moderate
storage turnover no low middle/long broad shallow
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• case1 channel market segmentation-----taking
  beverage as an example P32

Channel need Family description Office clerk description
batch I buy beverage every week. I have only ten minutes and I can only buy a tin beverage.
convenience I drive to nearby supermarket to buy. in ten minutes, I can only buy which I can get easily.
time I have much beverage at home. I didnt get what I want and I will come next time. If I cant can in ten minutes, I have to give up.
variety We two love cola, but children cant have. I cant to be very picky. It good to get it.
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• Try How do you arrange the channels?
• case2reasons and characteristics of shopping
  online

Purchase step store online
Plan what to buy purchaser purchaser
Go to bookshop purchaser dangdang
search purchaser dangdang
Select one by one purchaser dangdang
pay purchaser dangdang
pack purchaser dangdang
Take home purchaser dangdang
Open package purchaser purchaser
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• Considering the causes and Purchasers
• Characteristics
• Inspiration It is not to change the product but
  to change the way of products selling!
• Some cases Entrepreneurship in marketing channel

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??Non-members of the participants

• Transport enterprises
• Storage enterprises
• Market research agencies
• Insurance Companies
• bank
• Advertisement Agents