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Marketing Final Exam

Telemarketing factory outlets mail order and catalog

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Unformatted text preview: ries • Retail channel: one intermediary––retailers • Wholesaler channel: two intermediaries–– wholesalers and retailers • Agent/broker channel: three intermediaries–– agents or brokers, wholesalers, and retailers Direct marketing to consumers includes telemarketing, factory outlets, mail-order and catalog shopping, and electronic retailing. However, most consumer products are sold through retailer and wholesaler channels. Five channel structures are common in business-to-business markets: • Direct channel: no intermediaries, direct to • • • • industrial users Direct channel: no intermediaries, direct to government buyers Industrial distributor: one intermediary–– industrial distributors Agent/broker channel: one intermediary–– agents or brokers Agent/broker–industrial distributor: two intermediaries––agents or brokers and industrial distributors Direct selling to a final user is more common in business-to-business marketing than in consumer marketing. If intermediaries are used, agents or brokers can be used to bring producers and buyers together for negotiations. Alternatively, an industrial distributor can be used as an intermediary for standardized items of moderate or low value. Industrial distributors are channel members who buy and take title to products, usually keep inventories of their products, and sell and service these products. PTS: 1 REF: 206-207 Communication KEY: CB&E Model Distribution OBJ: 13-3 TOP: AACSB MSC: BLOOMS Synthesis 8. Name and briefly discuss two alternative channel arrangements that can be used to move products. ANS: There are three alternative channel arrangements discussed in the chapter, and students can discuss any two of the following: MULTIPLE CHANNELS/DUAL OR MULTIPLE DISTRIBUTION. Two or more different channels could be selected to distribute the same product to target markets. For example, consumer products could be sold through wholesaler and/or retailer channels, in addition to catalog mail ordering and electronic shopping. NONTRADITIONAL CHANNELS. The products could be sold through channels such as the Internet, mail-order channels, or infomercials. STRATEGIC CHANNEL ALLIANCES. The company could form an alliance with another manufacturer that already has an established channel. This could be important in foreign distribution or in any case when creation of marketing channel relationships may be expensive and time-consuming. PTS: 1 REF: 208 Communication KEY: CB&E Model Distribution OBJ: 13-3 TOP: AACSB MSC: BLOOMS Synthesis 9. What are the three factors affecting channel choice? Briefly discuss how each factor might influence a company to implement a direct channel of distribution. ANS: MARKET FACTORS. Industrial customers tend to buy in larger quantities and require more customer service. Conversely, consumers usually buy in very small quantities and sometimes do not mind if they get no service at all. Geographic location and size also determine channel c...
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