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Middlemen
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A business firm that renders services directly related to the sale/purchase of a product as it flows thru from producter to consumer
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Distribution channels
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People and firms involved in the transfer of title to a product as the product moves from producer to ultimate consumer or business user
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Producer > consumer
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No middleman, door to door. shortest, simplest distributioin channel
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Producer > retailer > consumer
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Example) walmart
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Producer > wholesaler > retailer > consumer
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Example) small retailers
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Producer > agent > wholesaler > retailer > consumer
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Heavy reliance on agent middlemen. example) clorox company uses sales and marketing agency to reach retailers
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Producer > agent > wholesaler > retailer > consumer
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Example) large retail chains, small retail stores
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Producer > user
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Example) jet engines, helicopters, elevators
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Producer > industrial distributor > user
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Example) producers of operating supplies and small accessory equipment frequently use indust dist.
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Producer > indust. dist. > reseller > user
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Example) computer items/high-tech
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Producer > agent > user
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Firms w/o sales dept
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Producer > agent > indust. dist. > user
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Sale size too small for direct selling
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Producer > consumer (services)
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Legal advice, health care
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Producer > agent > consumer
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Transfer of ownership
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Vertical marketing systems
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Tightly coordinated distribution channel designed specifically to improve operating efficiency and marketing effectiveness.
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