Chapter_12_-_Marketing_Channels

Chapter_12_-_Marketing_Channels - Study Guide for Marketing...

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Unformatted text preview: Study Guide for Marketing 431 Summer 2009 Chapter 12 – Marketing Channels Key Points Channel Theory Definitions Marketing Channel (Channel of Distribution) ◦ A set of interdependent organizations that ease the transfer of ownership from producer to business user or consumer ◦ Always includes producer and consumer Channel Functions The goal of a channel of distribution is to create the most efficient way to move products from producer to consumer Create efficiencies Specialization of labor Efficient use of equipment allows for economies of scale Specialization can allow multiple businesses to achieve economies of scale ◦ Synergies Overcome Discrepancies Create utility ◦ Discrepancy of quantity Form utility Study Guide for Chapter 12 – Marketing Channels Page 1 Marketing 431, Summer 2009 © 2009 ◦ Discrepancy of assortment Form utility ◦ Discrepancy of time Time utility ◦ Spatial discrepancy Place utility Contact efficiency Four producers sell to six retailers – 24 transactions Four producers sell to six retailers with one intermediary – 10 transactions Intermediary Functions Transactional ◦ Communication ◦ Negotiation ◦ Risk taking Logistical ◦ Physical distribution ◦ Sorting Study Guide for Chapter 12 – Marketing Channels Page 2 Marketing 431, Summer 2009 © 2009 ◦ Storage Facilitating ◦ Research ◦ Finance The point is… ◦ All of these functions have to be performed by somebody ◦ Not all businesses are equally good at performing all of these functions ◦ Intermediaries exist because the channel is more efficient with them than without them Intermediary - One who, or that which, is intermediate; an interagent; a go-between. (dict.die.net) Examples ◦ Middleperson ◦ Agent ◦ Broker ◦ Wholesaler ◦ Retailer ◦ Distributor Study Guide for Chapter 12 – Marketing Channels Page 3 Marketing 431, Summer 2009 © 2009 ◦...
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This note was uploaded on 10/16/2011 for the course MKTG 431 taught by Professor Brucerobertson during the Spring '07 term at S.F. State.

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Chapter_12_-_Marketing_Channels - Study Guide for Marketing...

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