is Why a marketing channel system so important to the manufacturer? Channel members collectively earn margins that account for 30% to 50% of the ultimate selling price. Marketing channels also represent a substantial opportunity cost. One of the chief role of marketing channels is to convert potential buyers into profitable customers. List the three things that all functions have in common. All channel functions have three things in common: (1) They use up scarce resources; (2) they can often be performed better through specialization; and (3) they can be shifted among channel members. Your presentation describes a channel alternative as having three sets of elements. What are the three elements that would be contained in your presentation? The three elements that a channel alternative possesses are: (1) the types of available business intermediaries; (2) the number of intermediaries needed; and (3) the terms and responsibilities of each channel member. What are some of the dangers that the company might encounter when moving from one form of distribution to another? The danger of moving from exclusive distribution to either selective or intensive distribution may help in the short term, but often hurts long-term performance. Intensive distribution increases product and service availability but may also result in retailers competing If aggressively. price wars ensue, retailer profitability may also decline, potentially dampening retailer interest in supporting the product, and it may also harm brand equity. What three important benefits can companies gain by adding more channels? By adding more channels, companies gain: (1) increased market coverage; (2) lower channel cost; and (3) more customized selling. Identify four things that marketers can do to better integrate their online and off-line channels. (1) Train all store associates on processes for online merchandise returns; (2) list your company's 800 number on the Web homepage and be sure your customer-service hours of operation are easily accessible; (3) provide an information center that is easy to navigate and includes contact information, FAQs, guarantees, return policies, and tips for first-time customers; (4) implement a store locator feature that includes store locations, hours, and events; (5) make store pickup for purchases an option and include real-time inventory levels, where applicable; (6) post the store's weekly circular online; (7) offer gift certificates that can be redeemed online and off-line; (8) send e-mail notifications of the order, shipping, and return credit; and (9) supply all pertinent/compatible information for store return of merchandise on the packing slip or invoice.