Which type of utility opens two way flows of information between marketing participants?

In the past year, trade practices between fresh produce shippers and food retailers gained national attention. Shippers are concerned that recent retail consolidation has led to market power and the growing incidence of fees and services. Retailers argue that these new trade practices reflect their costs of doing business and the demands of consumers. Trade practices include fees such as

Chapter 15

Distributing Products

15-1

The emergence of marketing intermediaries

-Marketing intermediaries: organizations that assist in moving goods and services from

producers to businesses (B2B) and from businesses to consumers (B2C)

-Channel of distribution: a whole set of market of marketing intermediaries, such as

agents, brokers, wholesalers, and retailers, that join together to transport and store goods

in their path (or channel) from producers to consumers

-Agents/brokers: marketing intermediaries who bring buyers and sellers together and

assist in negotiating an exchange but don’t take title to the goods

-Wholesaler: a market intermediary that sell to other organizations

- Retailer: an organization that sells to ultimate consumers

*Why marketing needs intermediaries

-Intermediaries perform certain marketing tasks – such as transporting, storing, selling,

advertising and relationship building – faster and cheaper than most manufacturers could

15-2

The utilities created by intermediaries

-Utility: in economics, is the want-satisfying ability, or value, that organizations add to

goods or services by making them more useful or accessible to consumers than they were

before

*Form utility

-Changing raw materials into useful products

*Time utility

-Adding value to the products by making them available when they’re needed

*Place utility

-Adding value to the product by having them where people need

*Possession utility

-Doing whatever is necessary to transfer ownership from one party to another, including

providing credit, delivery, installation, guarantees, and follow up service

*Information utility

-Adding value to products by opening two-way flows of information between marketing

participants

*Service utility

-Adding value by providing fast, friendly service during and after the sale and by teaching

customers how to best use products overtime

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organizations that assist in moving goods from businesses to businesses (B2B) and from businesses to consumers (B2C)

a group of marketing intermediaries that job together to transport goods

intermediaries who bring buyers and sellers together

an intermediary that sells products to other organizations such as retailers

The want-satisfying ability that organizations add to goods and service by making them more useful

1. firm
2. time
3. place
4. possession
5. information
6. Service

changes raw materials into useful products

makes products available when customers need them

adds value to products by placing them where people want them

help transfer ownership from one party to another

opens two way flows of information between marketing participants

provides service during and after a sale and teaches customers how to best use products

independent owned firm that take title to the goods they handle

furnish racks or shelves of merchandise such as music

cash and carry wholesalers

serve mostly smaller retailers with a limited assortment of products

Take orders from retailers and other wholesalers

puts products into as many retail outlets as possible

uses only a preferred group of the available retailers in an area

The use of only one retail outlet in a given geographic area

selling goods and services to ultimate consumers over the Internet

The sales of goods and services via the telephone

selling goods and services to customers in their homes

Any activity that directly links manufactureres with customers

The four systems of channel relationships

l. Corporate distribution systems
2. Contractual distribution systems
3. Administered distribution systems
4. Supply chains

Corporate distribution Systems

Exist when one firm owns all the organizations in a channel of distribution

contractual distribution systems

exist when members are bound to cooperate through contractual agreements

administered distribution systems

exist when producers manage all the marketing functions at the retail level

All the linked activities various organizations must preform

The planning, implementing, and controlling of goods

bringing raw materials from suppliers to producers

movement of goods within a warehouse

manages the flow of finished products and information to business buyers and consumers

brings goods back to the manufacturer because of defects or for recycling

puts many small shipments together to create a large one

uses multiple model of transportation to complete a single long distance movement of freight

Which type of utility opens two

Information Utility -- Opens two-way flows of information between marketing participants.

Which type of utility opens two

5-Information utility is created by opening two-way flows of information between marketing participants. Newspapers, websites, and salespeople all provide information utility.

Which type of utility opens two

Intermediaries add information utility by opening two-way flows of information between marketing participants. Intermediaries add service utility by providing fast, friendly service during and after the sale and by teaching customers how to best use products over time.

Which form of utility is added by marketing intermediaries who make products available when they are needed multiple select question?

Utility of Time Time is a precious commodity for many people. Intermediaries can provide time utility to customers by making Stan's products available when they want to purchase them.

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