Chapter_11a - Placement & Marketing Channels (Week 10)...

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1 (Week 10)
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2 Chapter Objectives 1. Describe the nature of marketing channels, and explain why marketing intermediaries are used. 2. Discuss traditional and online store retailing, and the different ways to classify stores: by amount of service provided, breadth and depth of the product line, relative price levels, control of outlets, and type of store cluster. 3. Compare the different types of wholesalers, including full-service and limited-service merchant wholesalers, brokers and agents, and manufacturers’ sales branches. 4. Explain the wholesaler marketing decisions of target market and positioning, and marketing-mix decisions, and describe trends in wholesaling.
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3 Demand Chain for Grocery Products
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4 The Nature of Marketing Channels A marketing channel is a network of interdependent organisations— intermediaries—involved in the process of making a product or service available for use or consumption by the consumer or industrial user Why are intermediaries used? 1. Many suppliers lack the financial resources to carry out direct marketing or customers want personal interaction before buying large ticket items 2. Even producers who can afford to set up their own channels can often earn a greater return by increasing their investment in their main business 3. Through their contacts, experience, specialisation and scale of operation, intermediaries usually offer a producer or supplier more than it can achieve on its own
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5 Using Intermediaries To Provide Economies
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6 Marketing Channel Functions 1. Information —gathering and distributing marketing research and intelligence 2. Promotion —developing and spreading communications about an offer. 3. Contact —finding and communicating with prospective buyers. 4.
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Chapter_11a - Placement & Marketing Channels (Week 10)...

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