8_ch14_channels

8_ch14_channels - Objectives Work Performed by Marketing...

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Distribution Strategy:  Managing Marketing Channels
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Objectives Work Performed by Marketing Channels Channel-Design Decisions Channel Dynamics
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How a Distributor Reduces the Number of Channel Transactions = Customer = Customer = Manufacturer Manufacturer A. Number of contacts A. Number of contacts without a distributor without a distributor M x C = 3 X 3 = 9 M x C = 3 X 3 = 9 1 1 3 3 2 2 4 4 5 5 6 6 7 7 8 8 9 9
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How a Distributor Reduces the How a Distributor Reduces the Number of Channel Transactions Number of Channel Transactions = Distributor = Distributor = Customer = Customer = Manufacturer = Manufacturer B. Number of contacts B. Number of contacts with a distributor with a distributor M x C = 3 + 3 = 6 M x C = 3 + 3 = 6 Store 1 1 2 2 3 3 4 4 5 5 6 6
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Functions Performed by Intermediaries They make possible the flow of product from producers to buyers by performing 3 basic functions: Transactional (buying, selling, risk taking) Logistical (Gathering, storing, dispersing of product) Facilitating (make goods and services more attractable)
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8_ch14_channels - Objectives Work Performed by Marketing...

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