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Marketing 12 - Chapter 12: Managing Marketing Channels and...

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Chapter 12: Managing Marketing Channels and Supply Chains 01/16/2017°I. Nature and Importance of Marketing Channels °What is Marketing Channel of Distribution Marketing Channel- which consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users. °°How Customer Value is created by intermediaries Important functions performed by intermediaries oTransactional functions- when they buy and sell products or services (they take a risk because if the no one purchases the stuff the producer doesn’t lose out the intermediaries do) oLogistical functions- gathering, sorting, and dispersing products are some of the logistical functions. oFacilitating Functions- make a transaction easier for the buyers °Consumer Benefits- having the products and services you want, when you want them, where you want them, and in the form you want them in is the ideal result of marketing channels.
oMarking channels help create value for consumers through the four utilities described in chapter 1: time, place, form and possession. Time- having a product or service you want when you want itPlace- have the product or service available where consumers want itForm- involve enhancing a product or service to make it more appealing to buyers.Possession- entails efforts by intermediaries to help buyers take possession of a product or service °II. Marketing Channel Structure and organization (some differences in the channels for business and consumer products) °Marketing Channels for Consumer Products and Services °Direct ChanneloChannel A, because the producer and the ultimate consumers deal directly with each other.Insurance companies Indirect Channel oIntermediaries are inserted between the producer and consumers and perform numerous channel functions. Channel B is the most common for large retailers. Channel C is most common for low-cost low unit value items that are frequently purchased by consumers such as candyChannel D is the most indirect Channel, is employed when there are many small manufacturers and many small retailers in this type of channel an agent is used to help coordinate a large supply of the product
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Term
Spring
Professor
Brandabur
Tags
Marketing, Supply Chain Management, Logistics, Marketing Channel of Distribution

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