Chapter 12 Study Notes

Chapter 12 Study Notes - Chapter 12 1. Explain why...

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Chapter 12 1. Explain why companies use distribution channels & how channel members interact / organize to perform channel’s work 2. Identify major channel alternatives 3. 4. THE NATURE AND IMPORTANCE OF DISTRIBUTION CHANNELS Only a few businesses sell their products directly to consumers. For the majority a distribution channel is used. This is a set of interdependent companies that make a good or service available to the consumer. How Channel Members Add Value: Giving some control to intermediaries allows for them to use their specializations to make your product more available to consumers. They also reduce the amount of work that needs to be done for both the consumer and the producer. Key Functions: Intermediaries serve many functions. They buy in bulk and break it down into individual pieces to sell to the public called bulk breaking. They also find and communicate with prospective buyers. They also fit the offer to the consumers needs, this can be manufacturing or packaging or design. They can even transport and store goods. Information:
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Chapter 12 Study Notes - Chapter 12 1. Explain why...

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