05. Marketing channels.ppt - Marketing channels The nature...

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Marketing channels. The nature of marketing channels – Marketing channels can be viewed as sets of interdependent organizations involved in the process of making the product or service available for use or consumption.
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1. Why are marketing channels used? Advantages of intermediaries – a. Lack of financial resources to carry out direct marketing. b. Direct marketing would be require many producers to become middleman for complementary products of other producers in order to achieve mass distribution economies. c. Producers who can afford to establish their own channels can often earn a greater return by increasing their investment in their main business - Some producers, however will setup a partially owned distribution system. d. The use of middleman largely boils down their superior efficiency in making goods widely available & accessible to target market.
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e. Marketing intermediaries transform the heterogeneous supplies found in nature into meaningful goods assortment desired by people.
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