CLEP Principles of Marketing Study Notes

Sorting activities functions that allow the members

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Sorting activities - functions that allow the members of a distribution channel to divide roles and separate tasks :
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1. Sorting - which involves separating conglomerates of heterogeneous products into relatively uniform, homogeneous groups based on product characteristics. After sorting the goods by quality , color, size, etc., the next step, if necessary is Accumulation. 2. Accumulation - involves developing a reserve or inventory of products that have similar production or demand requirements. An example might be where farmers who grow a relatively small amount of corn transport their corn to central collection points, where the corn is accumulated in large lots for movement into the next level of the distribution channel. The idea is to pool relatively small individual shipments so that they can be transported more economically . 3. Assorting - combination of products it offers to meet the preferences of consumers. The result of the Sorting process is to develop a broad assortment to meet the diverse preferences of consumers. Final result of the entire sorting process is a broad assortment to meet the diverse needs of customers. Combining products into collections that buyers want to have available in one place. Usually done at the retail level-- an example being grocery stores putting competing brands of canned foods together. Banner Advertisement - Quite often, with the results of an Internet search , an advertisement is presented on the page. Unique to the Internet. Internet cookies include personalization, website activity tracking and one to one marketing. Cookies are small text files that contain information sent by a web server to be stored on a client's computer running a web browser . Later the cookie can be read back from that browser. With one to one marketing , cookies are used to serve up advertising targeted to the user. Cookies are used to track where site visitors go, what banner ads they click on and other information that allows advertisers to customize advertising to match the profiles of potential customers. Direct Channels - Distribution channels which involve the direct movement of goods from the producer to consumers. Simplest of the distribution channels, but they are not necessarily the cheapest or the most efficient method of distribution. Indirect Channels - Distribution channels which involve independent intermediaries, or middlemen, to move the goods from the producer to the consumer. Most organizations use Indirect Channels involving one or more intermediaries. Channel Length - number of levels in a distribution channel--the number of intermediaries a product has to go through to reach the consumer. Channel Width - number of members at each level of the distribution channel. For example, if one level consists of wholesalers, the number of wholesalers would be the Width .
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