MKT 5815 Chapter 11 Brendan O’Neal

MKT 5815 Chapter 11 Brendan O’Neal -...

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Brendan O’Neal MKT 5815 Chapter 11 Analysis November 19, 2010 Dr. Gene Landrum Hodges University
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Managing Business Marketing Channels A marketing channel can be defined as a set of interdependent organizations that ease the transfer of ownership throughout the supply chain from manufacturer to consumer (Hutt and Speh, 2009). In many fields channel strategy is an ever-changing, challenging, competitive, and exciting component of the marketing manager’s job. Managing the marketing channels and accurately measuring the results is imperative to the success of an organization; the successful organizations are able to manage its relationships with channel providers and distributors while effectively controlling cost and minimizing conflict. The tasks of each marketing channel includes making contact with potential customers and current customers, contracting, transferring ownership, communicating, arranging financing, servicing the product sold, providing inventory to a retail location, transportation of goods, storage of goods, and other tasks (Hutt and Speh, 2009). Management of these tasks centers on the organization determining if the task is best handled within the organization or with outside help from another channel; the organization determines if these tasks are respectively best handled directly or indirectly (Hutt and Speh, 2009). Participants in the business marketing channel include distributors, manufacturers, and representatives. Distributors are used for maintenance, repair, and operation of products sold. Distributors consist of inventory from 200 and 300 manufacturers and a sales force of inside and outside salespersons (Hutt and Speh, 2009). Most distributor operations are in one location; others have many locations, like a supermarket (Hutt and Speh, 2009). A distributor can be looked at as a partner in the selling process. Customers value good distributors, as do manufacturers. Manufacturer’s representatives are
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MKT 5815 Chapter 11 Brendan O’Neal -...

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