Bcor2400_final_exam_study_guide - Marketing Final Exam...

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Marketing Final Exam Marketing Channels: consists of individuals or firms involved in the process of making a product or service available for use or consumption by consumers or industrial users the goal is to deliver o the right Goods and Services consumers want at the right time in the right location in the right form o thereby creating utility and an exchange Intermediaries o key differentiation merchant: take title ie. Target functional: perform functions but do not take title ie. Travelocity o functions performed transactional: credit cards logistical: warehouse facilitating: travelocity Distribution Channels o Direct Distribution: involves no intermediares ie. Schwanns more control, more expensive o Indirect Channel: many producers sell products to retailers who then sell them to consumers ie. Chrysler o Producer to wholesaler to retailer to consumer common marketing channels for consumers offerings by the kind and number of intermediaries ie. candy bars exist when they do enough to justify their existence o producer to agent to wholesaler to retailer to consumer complexity within market ie. global Industrial vs. Consumer o typically shorter o less intermediaries o concentrated o fewer, bigger Vertical Marketing Systems o corporate: own an intermediary: The combination of successive stages of production and distribution under a single ownership next level up (forward integration): towards consumers ie. Ralph Lauren stores
next level down (backward integration): towards producer ie. Kroger brands o contractual: (most popular) independent production and distribution firms integrate their efforts on a contractual basis to obtain greater functional economies and marketing impact than they could achieve alone Wholesaler sponsored voluntary chains: wholesaler that develops a contractual relationship with small, independent retailers to standardize and coordinate buying practices, merchandising programs and inventory management efforts Retailer sponsored cooperatives: small, indep retailers form an organization that operates a wholesale facility cooperatively ie. Ace Hardware Franchising manufacturer sponsored retail franchising ie. car dealership manufacturer sponsored wholesale franchise pepsi licenses wholesalers that purchase concentrate from pepsi and then carbonate, bottle, promote and distribute it’s products to retailers and restaurants service sponsored retail franchise ie. McDonalds service sponsored franchise systems: dispense a service under a trade name and specific guidelines ie. H&R Block Vertical Marketing: professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact traditional: all players (producer, wholesaler, etc) are independent and act in their own interest vertical: various players work together to gain efficiencies o corporate forward integration producer owns retailer o corporate backward integration retailer owns producer o

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