Distribution Channels

Distribution Channels - DistributionChannels March8 Channel...

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Distribution Channels March 8
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Channel Levels or Channel Order Zero, First Order (one intermediary), Second Order (two intermediaries), Higher Order, or some  combinations (Hybrid channels)
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Why have it?  Reasons for a distribution channel: (a) Reduce the number of transactions
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Contact Information Risk Taking Assortments Physical Distribution (b)  Certain tasks must be done.  Who can perform them most efficiently and effectively? 
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Implication of the Internet:   (I) The Internet is a force for  Disintermediation Traditional:   HP Laptop               Best Buy                  Consumer       Internet Disintermediation:   Dell                    Consumer     
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(I) The Internet is also a force for  Reintermediation Traditional:   Airlines            Travel Agents               Consumer Internet Reintermediation:  Airlines                   Travel Agents               Consumer         Priceline         
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Channel Partnerships:  Vertical and Horizontal Integration M R1 R2 R3 C Vertical integration backward  (e.g., R2 controlling M, e.g. Private labels)  Vertical integration forward (e.g., M controlling R2, e.g. Apple Stores, Franchise operations) Control = ownership / contracts / licenses / power
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This note was uploaded on 07/18/2011 for the course MKTG 311 taught by Professor Chatterji during the Spring '08 term at Binghamton University.

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Distribution Channels - DistributionChannels March8 Channel...

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