F10+Marketing+3104+Student+15.+Channels+of+Distribution+ppt

Channel functions all of these channel functions must

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Channel Functions
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All of these channel functions must occur – it’s just a matter of who does them! Channel Functions
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1. Direct or indirect channels? Direct channels can provide better product information may provide better service give the seller much more control Indirect channels better coverage convenient for buyers give buyers more variety, choice Channel Design Issues
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2. Market Coverage - How many channel members in a geographic area? Better coverage More control, sales effort Convenient for buyers Better customer service Use for simple, low risk, Use for complex, unique, frequently purchased high risk , prestige products products that buyers will seek out Channel Design Issues Intensive Selective Exclusive (many) (few) (one)
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3. Cost and Profitability High Sales force Cost per transaction Indirect channels Low Internet, telemarketing Profitability depends on both cost and effectiveness. Channel Design Issues
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Direct or indirect? Intensive, selective, exclusive? If different channel options are better at different things, why not use them all?
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Levi-Strauss Boutiques, Better department stores (Nordstrom ) Consumers Levi stores, Levi.co m Multichannel Marketing Department stores (JCPenney ) Wal-Mart
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Multichannel Distribution Benefits: Better market coverage Different segments’ needs met Reduces dependency on any one channel
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  • Spring '08
  • EBCoupey
  • Marketing, Consumer, design issues, Channel Design Issues, multichannel distribution

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