Channel Systems

Channel Systems - Marketing Strategy planning decisions for...

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Marketing Strategy planning decisions for place Place-  making goods and services available in the right quantities and locations when  customers want them   Channel of distribution:  any series of firms or individuals who participate in the flow of  products from producer to final consumer Consumer product classes  and  business product classes  set the framework for  making Place decisions.  They show how much market exposure is needed Place system is not Automatic:  marketing managers must develop several strategies,  each with its own place arrangements in order to involve the different viewpoints of all  the market segments. Place decisions have long-run effects:  Establishing websites is costly, it takes long to  develop relationships with others in the channel.  Channel systems may be Direct or Indirect Firms need to decide as to whether they would like to do direct-to-customer e-commerce  selling or use wholesalers, retailers, and other specialists.  There is greater control at a lower cost in Direct Systems The internet makes direct distribution easier:  Website based e-commerce systems  give many firms direct access to customers whom it would have been impossible to  reach in the past.  There is direct contact with customers:  if a firm is in direct contact with its customers,  it is more aware of changes in customer attitudes.  Suitable intermediaries are not available:  Many new products fail because the  product can’t find willing channel partners and doesn’t have the resources to handle  direct distribution.  Direct systems are common with business customers and services. Direct Marketing:  direct communication between a seller and an individual customer  using a promotion method other than face-to-face selling.  When Indirect Channels are best Direct distribution usually requires a significant investment in facilities, people, and IT. A company with limited financial resources or one that wants to retain flexibility may 
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This note was uploaded on 02/23/2012 for the course BUSI 406 taught by Professor Perreault during the Fall '11 term at UNC.

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Channel Systems - Marketing Strategy planning decisions for...

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