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13 Cards in this Set

  • Front
  • Back

Channel

set of interdepedent organisations that ease the transfer of ownership as products move from one producer to the consumer or business user

Intermediaries

Stand between producers and final users

Merchant middlemen

take title and resell products

agent middlemen

find customers and may negotiate on behalf of producers--they are facilitators

Benefits of using intermediaries

greater efficiency in making products available to customers/target markets


specialization of channel members allows for economies of scale


strong distribution channels can create value for the customers and competitive advantages for the channel members

roles of intermediaries

logistics


customer contact


collect and disseminate info


promotion


financing and risk taking

Two different channel lengths

direct channel--no intermediaries


indirect channels--one or more intermediaries

Nature of channel costs

indirect increases proportionally with extra participants

typical Supply chain process

manufacturers, wholesaler, retailer, customers

Multi-Channel distribution

employing two ore more different tpyes of marketing channels to distribute products

Multi-channel benefits and costs

advantages-allows targeting of different customer segments


different channels can offer superior value


Disadvantages- harder to control, especially when ownership varies


may generate conflict/cannibalization

Types of Channel conflict

Vertical conflict


Horizontal Conflict

How do retailers compete?

Product selection


Service and atmosphere


Price/quality/quantity levels