CH12 - Chapter 12 Marketing Channels and Supply Chain...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 12 Marketing Channels and Supply Chain Management Distribution Movement of goods and services from producers to customers Marketing (distribution) channel System of marketing institutions that enhances the physical flow of goods and services, along with ownership title, from producer to consumer or business user Logistics Process of coordinating the flow of information, goods, and services among members of the distribution channel Supply-chain management Control of the activities of purchasing, processing, and delivery through which raw materials are transformed into products and made available to final consumers Physical distribution Broad range of activities aimed at efficient movement of finished goods from the end of the production line to the consumer The Role of Marketing Channels in Marketing Strategy Marketing channels are key because they are the means of making goods and services available to ultimate users Four functions of marketing channels: 1Channels facilitate the exchange process by reducing the number of marketplace contacts necessary to make a sale 2Distributors adjust for discrepancies in the market’s assortment of goods and services via sorting, channeling products to meet the buyer’s and producer’s needs 3Channel members tend to standardize payment terms, delivery schedules, prices, purchase lots, and other conditions 4Channels facilitate searches by both buyers and sellers and bring them together to complete the exchange process Types of Marketing Channels Most channel options involve at least one marketing intermediary, an organization that operates between producers and consumers or business users A retailer owned and operated by someone other than the manufacturer of the products it sells A wholesaler who takes title to the goods it handles and then distributes these goods to retailers, other distributors, or sometimes end consumers Types of Marketing Channels Short channels have few intermediaries Service firms market primarily through short channels because they sell intangible products and need to maintain personal relationships within their channels Example: Independent ticket agencies Direct Selling Direct channel Carries goods directly from a producer to the business purchaser or ultimate user Direct selling A marketing strategy in which a producer establishes direct sales contact with its product’s final users Important option for goods that require extensive demonstrations in persuading customers to buy Example: Party plan, a gathering at a host customer’s home to demonstrate products and take orders Internet and direct mail are also potentially important tools for direct selling
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Channels Using Marketing Intermediaries For some products, using intermediaries may be more efficient, less expensive, and less time- consuming Producer to Wholesaler to Retailer to Customer The traditional channel for consumer goods Gives small producers access to hundreds of retailers Gives small retailers access to wholesaler’s specialized distribution skills
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/28/2011 for the course ADMS ADMS taught by Professor Kk during the Spring '11 term at York University.

Page1 / 6

CH12 - Chapter 12 Marketing Channels and Supply Chain...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online