Chapter 13 - Day 21 Student

Chapter 13 - Day 21 Student - CHAPTER 13 Marketing Channels

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CHAPTER 13 Marketing Channels © EIGHTFISH/Stone/Getty Images
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LO 1 Explain what a marketing channel is and why  intermediaries are needed LO 2 Define the types of channel intermediaries and  describe their functions and activities LO 3 Describe the channel structures for consumer and  business products and discuss alternative channel  arrangements  LO 4 Discuss the issues that influence channel strategy  Learning Outcomes
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LO 5 Describe the different channel relationship types  and their unique costs and benefits LO 6 Explain channel leadership, conflict, and  partnering  LO 7 Discuss channels and distribution decisions in  global markets  LO 8 Identify the special problems and opportunities  associated with distribution in service  organizations Learning Outcomes
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Marketing Channels a set of interdependent organizations  that eases the transfer of ownership as  products move from producer to  business user or consumer. A Marketing Channel is… An important aspect of marketing channels is the joint effort of all channel members to create a continuous and seamless supply chain http://www.huffingtonpost.com/2011/10/27/redbox-price-to-increase_n_1062628.html
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Marketing Channel Functions  Specialization and division of labor Overcoming discrepancies Providing contact efficiency viewed as a large pipeline through which products, their ownership, communication, financing and payment, and accompanying risk flow to the consumer. creates greater efficiency and lower production costs Quantity, assortment, time, and space Reducing the number of stores customers must shop in to complete their purchases
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Specialization and Division of Labor u Creates greater efficiency  u Provides lower production costs u Achieves economies of scale u Aids producers who lack resources  to market directly u Builds good relationships with  customers
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Overcoming Discrepancies Discrepancy of Quantity Discrepancy of Assortment The difference between the amount of product produced and the amount an end user wants to buy. The lack of all the items a customer needs to receive full satisfaction from a product or products. Temporal Discrepancy Spatial Discrepancy A situation that occurs when a product is produced but a customer is not ready to buy it.
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Chapter 13 - Day 21 Student - CHAPTER 13 Marketing Channels

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