MKT Test 3 Study guide - Chapter 11 Place-making goods and...

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Chapter 11 Place—making goods and services available in the right quantities and locations, when customers want them. Channel of distribution—any series of firms or individuals who participate in the flow of products from producer to final user or consumer Place o Distribution Customer Service and logistics (12) o Retailers wholesalers, and their strategy planning (13) o Place and Development of channel systems (11) Place objectives Product class—product classes suggest place objectives. They help us decide how much market exposure we’ll need in each geographic area Product life cycle—takes a long time and a lot of money when products are in early stages; yet as products mature, they typically need broader distribution to reach different target customers Direct vs. indirect Differences between—whether to rely on direct-to-customer e-commerce selling (for example) or use wholesalers, retailers and other specialists. When to use—Many firms prefer to distribute directly to the final customer or consumer because they want to control the whole marketing job. They may think that they can server target customers at a lower cost or do the work more effectively than intermediaries; also may not want product to be sold along with competitor’s product. When in direct contact w/ customers, a firm’s more aware of changes in customer attitude, and there fore in better position to adjust its marketing mix. Channel specialists Discrepancies and assortments—since producers are often located far from their customers and may not know how best to reach them, customers in turn may not know about their choices. Specialists develop to adjust these discrepancies and separations. Specialists often help provide info to bring buyers and sellers together. Middlemen who are close tot heir customers are often able to anticipate customer needs and forecast demand more accurately. This info can help reduce inventory costs in the whole channel—and it may help the producer smooth out production. Most producers seek help from specialists when they first enter international markets. Discrepancy of Quantity—the difference between the quantity of products it is economical for a producer to make and the quantity final users or consumers normally want (Ex: manufacturers of golf balls produce 200k-500k in a given time period). Discrepancy of assortment—difference between the lines of a typical producer makes and the assortment final customer or users want. Adjusting for both discrepancies usually requires middlemen—wholesalers and retailers. Regrouping activities—Regrouping activities adjust the quantities or assortments of products handled at each level in a channel of distribution. There are four types: o Accumulating—involves collecting products from many small producers (such as getting coffee from small farms in Columbia); especially important in less-developed countries where there are many small producers. Makes it more convenient for distant companies to buy and handle
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MKT Test 3 Study guide - Chapter 11 Place-making goods and...

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