Horizontal channel conflict

Horizontal channel - Definition A marketing channel can be define as a group of exchange relationships which create customer value in acquiring

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Definition • A marketing channel can be define as a group of exchange relationships, which create customer value in acquiring , consuming and disposing of product and services. • It is an organized network of agencies and institutions, which, in combination, perform all the activities required to link producers with users to accomplish the marketing task. Role of Marketing Channels • To fill the gaps between the production and consumption process (time gap, space gap, quantity gap and variety gap). Channel Flow • Possession flow • Ownership flow • Financial flow • Information flow • Risk flow • Negotiation Channel level • One level Channel • Two level channel • Three level channel • Multi level channel Analyzing Customer Expectation of Service output • Lot size Utility • Convenience utility : time utility (temporal convenience) and Space utility (Spatial convenience) • Selection Utility • Service utility Channel Dynamics • It involve the study of the impact of environmental forces such as economic, legal, political, social, technological and competitive ones on market. Characteristics of channel in response to the changes • Flexibility • Preparedness • attunement Horizontal marketing system • Process of sharing marketing resources amongst two or more unrelated businesses at the same level of operations to attain common benefits. • Horizontal integration of related businesses allows them to
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This note was uploaded on 06/27/2010 for the course MKTG BSA taught by Professor Delacruz during the Spring '10 term at University of the East, Manila.

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Horizontal channel - Definition A marketing channel can be define as a group of exchange relationships which create customer value in acquiring

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