5. Multiple channels for consumer goods

Often a manufacturer uses different distribution channels to reach different market segments. A manufacturer uses multiple channels, for example, when the same product is sold to consumers and industrial users. Multiple channels are also used to increase sales or to capture a larger share of the market. With the goal of selling as much merchandise as possible, market their tires through their own retail outlets as well as through independent service stations and department stores.

II. CHANNELS FOR INDUSTRIAL PRODUCTS

Producers of industrial products generally tend to use short channels. Here are the two that are most commonly used.

1. PRODUCER TO INDUSTRIAL USER

In this direct channel, the manufacturer’s own sales force sells directly to industrial users. Heavy machinery, large computers, and major equipment are usually distributed in this way. The very short channel allows the producer to provide customers with expert and timely services, such as delivery, machinery installation, and repairs.

2. MANUFACTURER TO AGENT MIDDLEMAN TO INDUSTRIAL USER

This channel employed by manufacturers to distribute such items as, accessory equipment, small tools, and standardized parts. The agent is an independent intermediary between the producer and the user. Generally, agents represent sellers.

MARKET COVERAGE

How does a producer decide which distribution channels (and which particular intermediaries) to use? Like every other marketing decision, this one should be based on all relevant factors. These include the firm’s production capability and marketing resources, the target market and buying patterns of potential customers, and the product itself. After evaluating these factors, the producer can choose a particular intensity of market coverage. Then the producer selects channels and intermediaries to implement that coverage.

Intensive distribution in the use of all available outlets for a product. The producer that wants to give its product the widest possible exposure in the marketplace chooses intensive distribution. The manufacturer saturates the market by selling to any intermediary that is willing to sell the product. For the consumer, intensive distribution means being able to shop at a nearby store and spending minimum time to find the product in the store. Many convenience goods, including candy, gum, and cigarettes, are distributed intensively.

Vocabulary

I.1.direct channel intermediary tie retailer 2. middleman quantity bulky handling perishable product high fashion 3.conveniency goods wholesaler deal (with) 4. commissions candy (A. E.) numerous outlet in turn vending machines decorations 5. multiple channels create capture tire II. 1. distribute provide (with) expert services timely services installation repairs accessory equipment small tools represent like relevant factors production capability buying pattern evaluate particular intensity market coverage implement intensive distribution give exposure saturate nearby store

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прямой канал посредник связь розничный торговец посредник количество громоздкий зд. обслуживание скоропортящийся продукт высокая мода;модный товары повседнев-ного спроса оптовик, оптовый торговец иметь дело (с) комиссионные (деньги) конфета многочисленные торговая точка в свою очередь торговые аппараты украшения многочисленные каналы создать захватить покрышка, шина(для автомобиля) распределять снабжать опытное обслуживание своевременное обслуживание установка ремонт вспомогательное оборудование мелкие инструменты представлять(собою) как соответствующие факторы производственная способность зд.характер покупок оценивать конкретный интенсивность обеспечение рынка осуществить интенсивное распределение представить (на обозрение) насыщать соседний магазин

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