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Unformatted text preview: CHAPTER 15 Marketing channel: individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users Flow of goods from a producer, through intermediaries, to a buyer-Intermediaries make selling goods and services more efficient because they minimize the number of sales contacts necessary to reach a target market ex: Middleman; Agent or broker; Wholesaler; Retailer; Distributor; Dealer-They perform a transactional function that involves buying, selling, and risk taking because they stock merchandise is anticipation of sales-They perform a logistical function evident in the gathering, storing and dispersing of products-They perform facilitating functions , which assist producers in making goods and services more attractive to buyers Marketing channels for consumer goods/services:- A direct channel is when a producer and ultimate consumer deal directly with each other-In indirect channels , intermediaries are inserted between producer and consumer and perform numerous channel functions Producer Agent Wholesaler Retailer Consumer Marketing channels for business goods/services:-They are typically shorter and only have 1 intermediary or none at all -An industrial distributor performs many marketing channel functions, such as selling, stocking and delivering a full product assortment, and...
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