Powerpoints Segment 15

Powerpoints Segment 15 - Facilitating Functions...

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SEGMENT 15: CHANNEL STRATEGY (Related chapter in text: 15)
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LEARNING OBJECTIVES Understand how channel strategy creates time and place utility. Delineate key functions of the channel of distribution. Distinguish intensive vs. selective vs. exclusive channels and direct vs. indirect channels.
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LEARNING OBJECTIVES Know the roles of the various forms of marketing intermediaries - wholesalers and retailers. Know the advantages and disadvantages of contractual, administered, and vertically- integrated channels.
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CREATING PLACE AND TIME UTILITIES TIME UTILITY . CONVENIENCE . SPEED PLACE UTILITY . CONVENIENCE . PRESTIGE
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DISTINGUISHING CHANNEL OF DISTRIBUTION FROM PHYSICAL DISTRIBUTION OF PRODUCTS Logistical Functions Logistical Functions Assorting, Transporting Assorting, Transporting Transactional Functions Transactional Functions Selling, Risk taking Selling, Risk taking
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Unformatted text preview: Facilitating Functions Facilitating Functions Financing, Market research Financing, Market research DEGREE OF CHANNEL COVERAGE 3 BASIC OPTIONS INTENSIVE SELECTIVE EXCLUSIVE 2 BASIC TYPES OF CHANNELS DIRECT INDIRECT A "TYPICAL" CHANNEL MANUFACTURER WHOLESALER RETAILER CONSUMER TYPES OF CHANNEL MEMBERS (ALSO KNOWN AS INTERMEDIARIES OR MIDDLEMEN) WHOLESALERS RETAILERS WHOLESALERS MERCHANT WHOLESALERS- DISTRIBUTOR- JOBBER AGENTS MANUFACTURER'S SALES BRANCH VS. SALES OFFICE RETAILERS STORE- SPECIALTY- DEPARTMENT STORES- POWER RETAILERS- DISCOUNTERS NONSTORE CHANNEL TYPES CONTRACTUAL e.g., Franchising ADMINISTERED VERTICALLY INTEGRATED KEY TRADEOFF COST VS. CONTROL (CHANNEL CAPTAIN) QUESTION: WHY USE INTERMEDIARIES? ANSWER: TRANSACTION EFFICIENCY...
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Powerpoints Segment 15 - Facilitating Functions...

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