CH11 notes - Transportation physically moving a product to...

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Marketing Channel - A set of individuals and organizations involved in the process of making a product or service available for use or consumption by the consume or business user - makes the flow of goods from a producer, through intermediaries, to a buyer Manufacturer Wholesaler Retailer Consumer Intermediary – any firm/org btwn manufacturer and end user Wholesaler – intermediary who sells to other intermediaries (retailers) Retailer – intermediary who sells to consumers How do Channel Members Add Value? Transactional Function Buying – purchasing products for resale or acting as an agent for supply of a product Selling – contacting potential customers, promoting products, and soliciting orders Risk taking – assuming business risks in inventory ownership (can become obsolete/deteriorate) Logistical Function Sorting – purchase in large Q and breaking into smaller amounts desired by customers Storing – assemble and protect products at convenient location to offer better customer service
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Unformatted text preview: Transportation physically moving a product to consumers Facilitating function Financing extend credit to customers, covering channel costs Information distributing marketing research and gathering info in marketing env Channel Structure Direct Channels (Producer Consumer) Indirect Channels (Producer (Wholesaler ) Retailer Consumer Distribution Intensity-number of intermediaries used in a market Intensive Distribution stock product in as many outlets as possible Exclusive Distribution give limited # of dealers exclusive right to distribute product Selective Distribution use 1+ (but not all) of intermediaries to carry product Channel Conflict Horizontal Conflict discord among members at same level of marketing channel-ve: reduce service quality +ve: ^comp among wholesalers/retailers ^sales as long as manufacturers profit Vertical Conflict Disintermediation channel member bypasses another and sells or buys products directly...
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This note was uploaded on 12/13/2011 for the course COMM 296 taught by Professor Dasgupta during the Winter '08 term at The University of British Columbia.

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CH11 notes - Transportation physically moving a product to...

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