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producer to wholesaler to retailer to consumer (Mars candy); (D) producer to agent to wholesaler to retailer to consumer (Mansar Jewelry sells Belgian products to US wholesalers)•Factors affecting channel choice and management (consumer factors, product factors, company factors, target market coverage—intensive, selective and exclusive, satisfying buyer requirements, profitability)•Consumer Factors– have direct bearing on choice/management of a marketing channel (Who are potential buyers? Where/When/How/What do they buy?)•Product Factors – sophisticated products (computers, machinery, aircrafts) are distributed directly to buyers; low-valued products (table salt) are distributed through indirect channels•Company Factors – influence a change in marketing strategy (Nike withdrew Starter ling from Wal-Mart); a firm’s financial/human/technological capabilities affect channel choice•Target Market CoverageoIntensive – a firm tries to place products/services in as many outlets as possible; convenience products (candy, fast food, newspapers)oExclusive – only one retailer in a specified geographical area carries the firm’s products (specialty products; apparel, yachts)oSelective – a firm selects a fewretailers in an area to carry its products (Dell)•Satisfying Buyer RequirementsoInformationis an important requirement when buyers have limited knowledge or desire specific data about a product/service.oConveniencecould mean proximity or driving time.oVariety reflects buyers’ interest in having numerous competing/complementary items from which to choose; evident in the breadth/depth of products/brands from intermediaries.oPre- or Postsale Services provided by intermediaries are important for products like large appliances that require delivery, installation, and credit.•Profitability– determined by the margins earned (rev – cost) for each channel member and for the channel as a whole•Push Strategy– directing the promotional mix to channel members to gain their cooperating in ordering/stocking the product; manufacturer to wholesaler to retailer to consumer•Pull Strategy – directing the promotional mix at ultimate consumers to encourage them to ask the retailer for a product; manufacturer to consumer to retailer to wholesaler to manufacturerChapter 16: Customer Driven Supply Chain Management•Supply Chain– sequence of firms that perform activities required to create and deliver a product/service to ultimate consumers or industrial users•Aligning a Supply Chain w/ Marketing StrategyoUnderstand the customer (identify customer needs like price or convenience)oUnderstand the supply chain (understand what the supply chain is designed to do well)oHarmonize the supply chain with the marketing strategy (make sure the supply chain is capable of consistently matching consumer needs)•Customer Service– ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience•