m1l6 - Fall 2010 Module 1 Delighting Customers Lecture 6:...

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David Robinson © D. Robinson, 2010 Fall 2010 Module 1 Delighting Customers Lecture 6: Channels of Distribution
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Class 6 : “Place” Channel of Distribution • The function of intermediaries • Types of channels • Physical distribution
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Place as one element of the Marketing Mix Marketing Mix Product Price Place Promotion Intermediaries Logistics
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Two types of Intermediaries: Wholesalers and Retailers Marketing Mix Product Price Place Promotion Intermediaries Logistics Wholesalers Retailers
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Intermediaries: Definition • Intermediaries are firms that distribute products from producers (manufacturers) to consumers • Wholesalers (only sell to other firms) • Retailers (sell to consumers)
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Intermediaries add value “We eliminate the Middleman” may ot e such a good idea E E may not be such a good idea E ( see Fig. 12.3 8e )
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Intermediaries Reduce the Number of Transactions in the Distribution System: Producers Consumers Without intermediaries 16 transactions
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Intermediaries Reduce the Number of Transactions in the Distribution System: Producers Consumers With intermediaries 8 transactions Intermediary Supermarket
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Functions of Intermediaries • Availability – The right selection of goods – In the right place – In the right quantity “Bulk breaking” • Financing • Information • Storage
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This note was uploaded on 02/05/2011 for the course BUSINESS 10 taught by Professor Johnsmith during the Fall '10 term at UCLA.

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m1l6 - Fall 2010 Module 1 Delighting Customers Lecture 6:...

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