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CH11 notes

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

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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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