m1l6 - David Robinson D. Robinson, 2008 Spring 2008 Module...

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Unformatted text preview: David Robinson D. Robinson, 2008 Spring 2008 Module 1 Delighting Customers Lecture 6: Channels of Distribution Class 6 : Place Channel of Distribution The function of intermediaries Types of channels Physical distribution Place decisions Product Price Intermediaries Logistics Place Promo tion Ma rket ing Mi x Intermediaries: Definition Intermediaries are firms that distribute products from producers (manufacturers) to consumers Wholesalers (only sell to other firms) Retailers (sell to consumers) Intermediaries add value We eliminate the Middleman may not be such a good idea ( see Fig. 12.3 ) Intermediaries Reduce the Number of Transactions in the Distribution System: Producers Consumers Without intermediaries 16 transactions Intermediaries Reduce the Number of Transactions in the Distribution System: Producers Consumers With intermediaries 8 transactions Intermediary Supermarket Supermarket Functions of Intermediaries Availability The right selection of goods...
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m1l6 - David Robinson D. Robinson, 2008 Spring 2008 Module...

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