9. Place

9. Place - Place Channels and Distribution Keith E....

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Place – Channels and Distribution Keith E. Niedermeier Ph.D.
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Quiz What is single biggest driver behind the commercial success of a movie? Advertising typically accounts for ____ % of the final selling price of a product. Distribution typically accounts for ____ % of the final selling price of a product.
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A simple view
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What is a Channel? Path that enables products/services to flow from producers to end users Intermediaries - organizations/partners Functions - activities Value delivery network - company, suppliers, distributors, and customers partner to improve performance of entire system
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Channel Functions and Value Transactional functions Buying, selling, risk-taking Logistical functions Transporting, storing, sorting (“breaking bulk”) and creating assortments Facilitating functions Financing, information/research, promoting, inspecting/testing
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Intermediaries Agent/broker: Negotiates sales without taking title to the goods. Generally paid by commission or fees. Wholesaler : Takes title to the goods and resells them. Retailer
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9. Place - Place Channels and Distribution Keith E....

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