MGKT CHAPTER 13
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Explain what a marketing channel
A set of interdependent organizations that ease the transfer of ownership as products move from producer to business user or consumer.
List the Marketing Channel Functions
- Specialization and division of labor
- Overcoming discrepancies
- Providing contact efficiency
Define A Discrepancy of Quantity
The difference between the amount of product produced and the amount an end user wants to buy.
Describe a Discrepancy of Assortment
The lack of all the items a customer needs to receive full satisfaction from a product or products.
Describe a Temporal Discrepancy
A situation that occurs when a product is produced but a customer is not ready to buy it.
Decribe a Spatial Discrepancy
The difference between the location of a producer and the location of widely scattered markets.
List the types of channel intermediaries
Retailer, Merchant Wholesaler, Agents and Brokers
describe the Retailer
- A channel intermediary that sells mainly to customers\
- They Take Title to Goods
Describe the Merchant Wholesaler
An institution that buys goods from manufacturers, takes title to goods, stores them, and resells and ships them.
Describe the Agents and Brokers
- Wholesaling intermediaries who facilitate the sale of a product by representing channel members.
- Do NOT Take Title to Goods
Describe the Transactional Functions
- Risk Taking
- done by Retailers
List the Logistical Functions
- Physically distributing
- done by Wholesalers
List the Facilitating Functions
- done by Agents and Brokers
The process of strategically managing the efficient flow and storage of raw materials, in-process inventory, and finished goods from point of origin to point of consumption.
Describe the channel structures for consumer and business products and discuss alternative channel arrangements
Define a Direct Channel
A distribution channel in which producers sell directly to consumers.
Describe CONSUMER CHANNELS
Describe BUSINESS CHANNELS
- Agent/broker industrial
Decribe ALTERNATIVE CHANNELS
- Strategic alliances
List the Alternative Channel Arrangements
- Multiple channels
- Nontraditional channels
- Strategic channel alliances
Discuss the issues that influence channel strategy
- Market Factors
- Product Factors
- Producer Factors
List the different channel relationship types
- Arm’s Length Relationship
- Cooperative Relationship
- Integrated Relationship
Define Arm’s Length Relationship
- Fulfills a one time or unique need; low involvement/risk
- Parties unable to develop relationship; low trust level
Define a Cooperative Relationship
- Formal contract without capital investment/long-term commitment; “happy medium”
- Some parties may need more relationship definition
Describe a Integrated Relationship
- Closely bonded relationship; explicitly defined relationships
- High capital investment; any failure could affect every channel member
Explain channel leadership
- A member of a marketing channel that exercises
- authority/power over the activities of other members
Describe Channel Conflict
A clash of goals and methods between distribution channel members
Describe Channel Partnering
The joint effort of all channel members to create a supply chain that serves customers and creates a competitive advantage
Discuss channels and distribution decisions in global markets
- Distribute directly or through foreign partners
- Legal and infrastructure differences
Identify the special problems and opportunities associated with distribution in service organizations
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