ch12 - Chapter 12 Global Marketing Channels and Physical...

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Chapter 12 Global Marketing Channels and Physical Distribution Introduction It’s a way of bringing dreams closer to people, dreams which before they only saw in films. —Tadeusz Donocki, undersecretary of state, Poland’s Economics Ministry on the arrival of hypermarkets that provide customers with more products and lower prices than they have ever had. Channel Objectives * Marketing channels exist to create  utility for customers
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* Place utility availability of a product or  service in a location that is convenient to  a potential customer  * Time utility availability of a product or  service when desired by a customer   * Form utility availability of the product  processed, prepared, in proper condition  and/or ready to use * Information utility availability of  answers to questions and general  communication about useful product  features and benefits Distribution Channels: Terminology and Structure * Distribution is the physical flow 
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of goods through channels * Channels are made up of a  coordinated group of individuals  or firms that perform functions  that add utility to a product or  service Distribution Channels: Terminology and Structure * Distributor wholesale  intermediary that typically  carries product lines or brands  on a selective basis * Agent an intermediary who  negotiates transactions between 
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two or more parties but does not  take title to the goods being  purchased or sold Consumer Products Peer-to-Peer Selling * The Internet and other related  media are dramatically altering  distribution * Ebay pioneered P2P and now  helps Disney and IBM set up  websites for fixed price selling  as well as B2C auctions * Interactive TV may become a  viable direct marketing channel 
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in the future Door-to-Door Selling * Mature form in the United States
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ch12 - Chapter 12 Global Marketing Channels and Physical...

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