Wk10 - Week 10 Marketing Mix III Distribution Understand...

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Understand the central tradeoff in channel design Describe channel Functions and Flows Know Intermediary Types (e.g. brokers, MLM) Know the basics Retailing and e-tailing Assess relative power in the channel Week 10 Marketing Mix III Distribution
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Distribution Channels: Framework Simplest Channel is Direct: So…why add middlemen? Producer Consumer
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Distribution Channels: Framework Producer Consumer Producer Producer Producer Producer Consumer Consumer Consumer Consumer 25 transactions
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Distribution Channels: Framework Producer Consumer Producer Producer Producer Producer Consumer Consumer Consumer Consumer 10 transactions retailer
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Channel Design Objective: middlemen add costs AND value: Design Channel to maximize delivered net value : From First Principles: Customer Focus Value is defined by the end customer From First Principles: Customer Heterogeneity Different segments have different values and will prefer different channels
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eg. Furniture assembly & delivery function: Mfr. -assembly Retailer -delivery
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This note was uploaded on 02/06/2011 for the course BUS 343 taught by Professor John during the Fall '08 term at Simon Fraser.

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Wk10 - Week 10 Marketing Mix III Distribution Understand...

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