1. Mrs. Brink Marketing Principles
Intermediaries
Mrs. Brink Marketing Principles

2. Who is an intermediary?
Intermediaries=channel members who take ownership (or represent ownership) of products as they move through channel
Agents, brokers, retailers, wholesalers
TRANSPORTATION AND STORAGE ARE NOT INTERMDIARIES!!
Planes, trucks, rail roads, warehouses and distribution centers

3. Who are the intermediaries?
Producer
Retailer
Wholesaler
Consumer
Agent
Distribution Center
Trucking company provide physical distribution

4. Brokers v. Agents Agents Brokers Represent a company—usually only one!
They sell products to wholesalers, retailers and consumers
Have on going relationships with clients
Brokers
Hired out—independent from the business but are brought into represent the seller
Can negotiate terms and represents several non competing businesses
Make the deal and then are done with clients

5. Distribution Centers v. Warehouses
NOT INTERMEDIARIES, no ownership or representation involved
Distribution centers—repackage, store and distribute products as orders come in
Warehouses—sole purpose is to store inventory until it is time for it to be distributed
BOTH ARE AN IMPORTANT PART OF LOGISTICS

6. Physical Distribution
Physical distribution is the actual movement of products from point A to point B
Also referred to as logistics—the planned out physical distribution of products
Often times businesses out source other companies to fulfill physical distribution
FedEx
UPS
USPS

7. This is happening in your town!
Op5 Inc. on Chastain Road by KSU

9. Case Study Op5

10. How they operate
Agent: represent GP products and sell to retailers/wholesalers
Distribution Center

11. Products from Georgia Pacific

13. From GP to Op5

14. Orders

15. Tracking Inventory

18. Repacking and Shipping Out

19. FedEx

20. Shipping Out

22. From Op5 to FedEx

23. FedEx Ground/Air