MKTG_-_Chapter_13 - Chapter 13 Managing Marketing Channels...

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Unformatted text preview: Chapter 13 Managing Marketing Channels and Supply Chains Marketing Channel 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 o Make possible the flow of goods from a producer, through intermediaries to a buyer o Their role is to bring a seller and buyer together Functions performed by intermediaries o Perform a transactional function when they buy and sell goods or services o If the stock is unsold for any reason, the intermediary not the producer suffers the loss o Gathering, sorting, and dispersing products are some of the logistical functions of the intermediary o Intermediaries perform facilitating functions that make a transaction easier for buyers o All three groups of functions must be performed in a marketing channel, even though each channel member may not participate in all three Consumer benefits from Intermediaries o Having the goods and services you want, when you want them, where you want them, and in what form you want them in is the ideal result of marketing channels o Help create value for customers through the four utilities: time, place, form, and possession Channel Structure and Organization o Marketing Channels for Consumer goods and services As the number of intermediaries between a producer and buyer increases, the channel is viewed as increasing in length Direct channel a producer and ultimate consumers deal directly with each other because there are no intermediaries with a direct channel, the producer must perform all channel functions Indirect channels intermediaries are inserted between the producer and consumers and perform numerous channel functions With a retailer added, it is most common when the retailer is large and can buy in large quantities from a producer or when the cost of inventory makes it too expensive to use a wholesaler Adding a wholesaler is most common for a low-cost, low-unit value items that are frequently purchased by consumers The most indirect employed when there are many small manufacturers and many small retailers and an agent is used to help coordinate a large supply of the product o Marketing Channels for Business Goods and Services Business channels typically are shorter and rely on one intermediary or non at all because business users are fewer in number, tend to be more concentrated geographically, and buy in larger quantities Industrial distributor performs a variety of marketing channel functions, including selling, stocking, and delivering a full product assortment and financing Agent who serves primarily as the independent selling arm of producers and represents a producer to industrial users...
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This note was uploaded on 03/25/2008 for the course MKTG 3104 taught by Professor Ebcoupey during the Spring '08 term at Virginia Tech.

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MKTG_-_Chapter_13 - Chapter 13 Managing Marketing Channels...

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