OL SA C13 C14 F10

OL SA C13 C14 F10 - Principles of Marketing Chapter 13/14 F10 Online Chapter 13 Name Aaron Rumley 1 What is a marketing channel Marketing Channel

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Principles of Marketing Name: Aaron Rumley Chapter 13/14 – F10 Online Chapter 13 1. What is a marketing channel? Marketing Channel: Set of interdependent organizations that eases the transfer of ownership as products move from producer to business user or customer 2. Describe/define each of these: Agents and Brokers: Wholesaling intermediaries who do not take title to a product but facilitate its sale from producer to end user by representing retailers, wholesalers or manufacturers Merchant Wholesaler: Institution that buts goods from manufacturers and resells them to businesses, government agencies and other wholesalers or retailers and that receives and takes title to goods, stores them in its own warehouses and later ships them Retailers: Channel intermediary that sells mainly to customers 3. One important reason channel members are included between producers and end users is to overcome discrepancies. Briefly describe/define these four discrepancies channel members overcome. 1. Discrepancy of Quantity: Difference between the amount of product produced and the amount an end user wants to buy 2. Discrepancy of Assortment: The lack of all the items a customer needs to receive full satisfaction from a product or products 3. Temporal Discrepancy: Situation that occurs when a product is produced but a customer is not ready to buy it 4. Spatial Discrepancy: The difference between the location of a producer and the location of widely scattered markets. 4. Channel members such as wholesalers and retailers are often included between producers and business users or consumers for three important reasons. Name these three reasons. 1: Transactional 2: Logistical 3: Facilitating 5. One important reason channel members are included between producers and users is to increase contact efficiency. How do channel members increase contact efficiency? INCREASE CONTACT EFFICIENCY - Reducing the number of stores customers must shop om tp complete their purchases Use the following two scenarios to illustrate your answer: (1) Assume there are 2,000 business students who need to buy textbooks from eight textbook publishers. How many transactions must take place? ANSWER: 16,000 (2) Assume the first scenario, but now one campus bookstore is acting as an intermediary. Now how many transactions must take place? ANSWER: 2,008 6. Intermediaries must perform three basic functions. For these functions tell the activities involved in each. 1. Transactional Functions: Contacting and communicating with prospective buyers to make them aware of existing products and explain their features, advantages and benefits
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2. Logistical Functions: Efficient and cost-effective forward and reverse flow and storage of goods, services and related information, into, through and out of channel member. Companies.
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This note was uploaded on 12/09/2010 for the course BUS 2313 taught by Professor Zhang during the Spring '10 term at East Central.

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OL SA C13 C14 F10 - Principles of Marketing Chapter 13/14 F10 Online Chapter 13 Name Aaron Rumley 1 What is a marketing channel Marketing Channel

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