Comm 296 - Chapter 11 (Lecture)

Comm 296 - Chapter 11 (Lecture) - Comm 296 Chapter 11...

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Comm 296 Chapter 11 (Lecture) DISTRIBUTION - All activities required to get the right product to the right place at the right time - System of organization that enhances the flow of products from producers to users Examples of Channel Structures - A set of interdependent organizations that help make a product or service available for end use - Channel decisions affect other marketing decisions o Positioning, segmentation, pricing (overall marketing mix) Eg if decide to go directly to consumer, or go through retailers/resellers, has impact on overall position in the market - Channel decisions can lead to a competitive advantage - Direct marketing channel : no intermediary levels, sell directly to consumer (store, online) - Indirect marketing channel : intermediaries involved, adds to channel complexities (everyone has different objectives), less control over your product - Channel levels – refers to length of channels (the longer a channel, the more partners in the channel) - Consumer goods: producer, agent/broker, wholesaler, retailer, customer - Services: service provider, agent/broker, consumer/business user Channel Design Decisions - Firms often struggle between what is ideal and what is practical - Marketing channel design: o Analyzing consumer needs Do customer want to go to a physical store? Add on services? Firms need to balance costs and complexities vs. consumer price preferences/expectations o Setting channel objectives o Identifying major channel alternatives Agent/broker, distributors/wholesalers (that take ownership of the product), number of marketing intermediaries, intensity of distribution o Evaluating channel alternatives Qualities of an Effective Channel 1) Reduces the number of marketplace contacts, boosting exchange efficiency 2) Matches consumers’ needs to companies’ products (sorting) 3) Facilitates information flow through the channel (what the retailer is looking for (info/objectives/needs) is passed onto the wholesaler, which is then passed onto the manufacturer; but when you go direct, you can get more information more
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This note was uploaded on 12/07/2011 for the course COMM 296 taught by Professor Dasgupta during the Winter '08 term at UBC.

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Comm 296 - Chapter 11 (Lecture) - Comm 296 Chapter 11...

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