chapter9 mkt 420-2019.ppt - Distribution Channels and Logistics Management Chapter 9 Value Delivery Network The network made up of the company suppliers

chapter9 mkt 420-2019.ppt - Distribution Channels and...

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Distribution Channels and Logistics Management Chapter 9
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Value Delivery Network The network made up of the company, suppliers, distributors, and ultimately customers who “partner” with each other to improve the performance of the entire system. Marketing channel Set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user
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Channel choices affect other decisions in the marketing mix Pricing, Marketing communications A strong distribution system can be a competitive advantage Channel decisions involve long-term commitments to other firms
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How Channel Members Add Value Intermediaries require fewer contacts to move the product to the final purchaser. Intermediaries help match product assortment demand with supply. Intermediaries help bridge major time, place, and possession gaps that separate products from those who would use them.
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Key Functions Performed by Channel Members Information Information Promotion Promotion Contact Contact Matching Matching Negotiation Negotiation Physical Distribution Physical Distribution Financing Financing Risk taking Risk taking
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Number of Channel Levels The number of intermediary levels indicates the length of a marketing channel. Direct Channels -no intermediary levels Indirect Channels -one or more intermediaries Producers lose more control and face greater channel complexity as additional channel levels are added.
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Channel Members Are
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