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Unformatted text preview: de wholesalers, distributors, agents and brokers, and retailers.
KEY: CB&E Model Distribution OBJ: 13-1 TOP: AACSB MSC: BLOOMS Synthesis 2. One important reason channel members are included between producers and users is the concept
of specialization and division of labor. Define these concepts and explain their roles in channels
Specialization and division of labor break down a complex task into smaller, simpler ones and
allocate them to spets, which results in much greater efficiency. Marketing channels achieve
economies of scale through specialization and division of labor. Some producers do not have the
interest, financing, or expertise to market directly to end users or consumers. These producers use
channel members to perform functions and activities that the producers are not equipped to
perform or that these intermediaries are better prepared to perform. Channel members can
perform some functions and activities more efficiently than producers, and they enhance the
overall performance of the channel because of their specialized expertise.
KEY: CB&E Model Distribution OBJ: 13-1 TOP: AACSB MSC: BLOOMS Synthesis 3. One important reason channel members are included between producers and end users is to
overcome discrepancies. Name and briefly describe four discrepancies channel members
DISCREPANCY OF QUANTITY. Large quantities produced to achieve low unit costs create quantity discrepancies (the amount of product produced compared to the amount an end user
wants to buy). Marketing channels overcome quantity discrepancies by making products available
in the quantities that buyers desire.
DISCREPANCY OF ASSORTMENT. This discrepancy occurs when mass production does not
allow a firm to produce all the items necessary for buyers to receive full satisfaction from
products. Marketing channels overcome discrepancies of quantity by assembling assortments of
products that buyers want in one place.
TEMPORAL DISCREPANCY. This is created when a product is produced but a consumer is not
ready to purchase it. Marketing channels overcome temporal discrepancies by maintaining
inventories in anticipation of demand.
SPATIAL DISCREPANCY. Mass production requires a large number of potential purchasers, so
markets are usually scattered over large geographic regions. Marketing channels overcome spatial
discrepancies by making products available in locations convenient to consumers and business
KEY: CB&E Model Distribution OBJ: 13-1 TOP: AACSB MSC: BLOOMS Synthesis 4. Channel members such as wholesalers and retailers are often included between producers and
business users or consumers for three important reasons. Name and briefly describe these reasons.
SPECIALIZATION AND DIVISION OF LABOR. Economies of scale, specialization and
division of labor, and the use of professional management normally result in l...
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This document was uploaded on 09/29/2013.
- Fall '13