CHAPTER 15 - CHAPTER 15 Channels of Distribution Strategy Marketing channels individuals and firms involved in making a product or service

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CHAPTER 15 Channels of Distribution Strategy Marketing channels: individuals and firms involved in making a product or service available for consumption o Individuals and firms are called a channel member or middle man Typical Marketing Channels o Consumer markets: Producer Wholesaler: sells to other channel members Retailer: sells to consumers Consumer o Organizational markets Producer Agent/broker Connects buyers and sellers, does not take possession or title to the goods. Also distributors, which are the channel members in the org. markets Distributor Organizational buyer Channel members: o Know that there are many channel members options that serve different channel functions o Know the terms for channel members just discussed o You do not need to know the subtypes of wholesalers and their functions Marketing channels o Indirect channel Green giant à NAFC à Kroger à Consumers o Direct channels: right to the final user to use product HP imaging equipment à large hospitals
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Apple à consumers Apple stores, website Why do we have channels? Better positioning to get product to market. The producer may not be as effective and efficient in making the product available for consumption as the others are. o Channel functions Transactional Buying, selling: facilitating transaction from one to the next to the next to the next etc.
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This note was uploaded on 10/04/2011 for the course MKTG 3104 taught by Professor Ebcoupey during the Spring '08 term at Virginia Tech.

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CHAPTER 15 - CHAPTER 15 Channels of Distribution Strategy Marketing channels individuals and firms involved in making a product or service

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