Marketing Homework 4 - Josh Kelly Marketing Homework...

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Josh Kelly Marketing Homework Chapters 14 & 15 16 December 2007 Ch. 14 Dual Distribution - The use of two or more channels to distribute the same product to the same target market. Outsourcing - The contracting of physical distribution tasks to third parties who do not have managerial authority within the marketing channel. Just-in-Time (JIT)- An inventory management approach in which supplies arrive just when needed for production or resale. Issues for Discussion and Review 1. A Marketing Channel is a group of individuals and organizations that directs the flow of products from producers to customers. The major role of marketing channels is to make products available at eh right time, at the right place, in the right quantities. Providing customer satisfaction should be the driving force behind marketing channel decisions. Buyers’ needs and behaviors are therefore important concerns of channel members. A marketing Intermediary links producers to other intermediaries or to ultimate consumers through contractual arrangements or through the purchase and reselling of products. A major function of the marketing channel is the joint effort of all channel members to create a supply chain, a total distribution system that serves customers and creates a competitive advantage. Supply Chain management refers to long term partnerships among marketing channel members that reduce inefficiencies, costs, and redundancies in the marketing chancel to develop innovative approaches to satisfy customers. Supply Chain Management involves manufacturing research, sales, advertising, shipping, and, most of all, cooperation and understanding of tradeoffs through the entirety of the channel to achieve the optimal level of efficiency and service. 6. a) Intensive distribution aims to provide saturation coverage of the market by using all available outlets. For many products, total sales are directly linked to the number of outlets used (e.g. cigarettes, beer). Intensive distribution is usually required where customers have a range of acceptable brands to choose from. In other words, if one brand is not available, a customer will simply choose another
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b) Selective distribution involves a producer using a limited number of outlets in a geographical area to sell products. An advantage of this approach is that the producer can choose the most appropriate or best-performing outlets and focus effort (e.g. training) on them. Selective distribution works best when consumers are prepared to "shop around" - in other words - they have a preference for a particular brand or price and will search out the outlets that supply.
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