marketing 445 study guide 4

marketing 445 study guide 4 - Chapter 14 Channel of...

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Chapter 14 Channel of Distribution structures o All consumer and industrial products go through a distribution process Handling and distribution of goods Passage of ownership Buying and selling negotiations between products and middlemen Buying and selling negotiations between middlemen and customers o each country marketing has a distribution structure through which goods pass from producer to user Import-oriented distribution structure (no pressure to lower prices) o An importer controls a fixed supply of goods and the marketing system develops around the philosophy of selling a limited supply of goods at a high price to a small amount of affluent customers o Demand exceeds supply o Customer seeks the supply from limited middlemen o Local distribution systems o Few countries fit the import-oriented model today Japanese distribution structure o Consumer goods are so expensive because there is a big distribution system In Japan there are 14 entities in the distribution channel and in the U.S. there is only 6 Because everyone needs a cut of cost, Japan must make their prices higher 1 st largest consumer market is U.S. and Japan is number 2 o Dominated by many small middlemen dealing with many small retailers o Channel control by manufacturers o A business philosophy shaped by a unique culture o Laws protect the foundation of the system High density of middlemen o Consumer goods go through 3-4 intermediaries before reaching customers—want to keep out mass merchants o In Japan, small stores have 57% of retail food sales, in U.S. they have 19% o Japan has many more small stores, compared to the U.S. which has many supermarkets Channel control o 1. inventory financing- whole industry that finances inventory
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o 2. cumulative rebates- give a discount to a company that buys more
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This note was uploaded on 04/28/2008 for the course MKTG 445 taught by Professor Andaleebsyedsaa during the Fall '08 term at Penn State.

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marketing 445 study guide 4 - Chapter 14 Channel of...

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