Lecture%2014_Ch14_Chanels%20and%20Internet%20Marketing_p

Lecture%2014_Ch14_Chanels%20and%20Internet%20Marketing_p -...

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Chann e ls
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Learning Objectives Explain what a marketing channel is and why channels are needed. Describe and understand channel structures Channel conflicts and VMS Understand major Internet marketing activities especially Internet channels.
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A set of interdependent organizations that ease the transfer of ownership as products move from producer to business user or consumer. Relates to one “P” in the “4Ps”: place The use of intermediaries results from their greater efficiency in making goods available to target markets. Offers the firm more than it can achieve on its own through the intermediaries: Contacts. Experience. Specialization. Scale of economy Introduction to Marketing Channels
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What Can Channels Do? Information Communication Inventory Carrying Transportation Risk Taking Physical Distribution Research Servicing
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Channel choices affect other decisions in the marketing mix A strong distribution system can be a competitive advantage Channel decisions involve long-term commitments to other firms Channel members add value by bridging the major time, place, and possession gaps. Importance of Channels
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Specialization and Division of Labor Provides efficiency and cost savings Attains economies of scale Aids producers who lack resources to market directly Builds good relationships with customers
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Overcoming Discrepancies Discrepancy of  Quantity and Assortment The difference between the amount of product produced and  the amount an end user wants to buy. The difference between the types of product produced and  the types an end user wants to buy. Firms tend to maximize the quantity of a limited line of  products Consumers need a minimum quantity of a wide selection of  alternatives 
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Overcoming Discrepancies cont’ Temporal Discrepancy Spatial Discrepancy A situation that occurs when a  product is produced but a customer is  not ready to buy it. The difference between the location  of a producer and the location of  widely scattered markets.
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Channels for Consumer Products Producer Producer Producer Producer Consumers Consumers Consumers Consumers Retailers Retailers Retailers Wholesalers Wholesalers Agents or Brokers Wholesaler Wholesaler Channel Channel Retailer Retailer Channel Channel Direct Direct Channel Channel Agent/Broker Agent/Broker Channel Channel Exhibit 11.2
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This note was uploaded on 04/07/2009 for the course MRKT 101 taught by Professor Wormer during the Spring '08 term at McGill.

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Lecture%2014_Ch14_Chanels%20and%20Internet%20Marketing_p -...

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