Place Flashcards
Whats marketing channels
creating customer access
Creating customer access can be competitive advantage and marketplace disruption
yes
Customer decision to buy often based on experience at the point of purchase
What is place
Is the product available to the consumer at the right time, place, right quantity
Creating customer access
path that enable goods/s to flow from producers to end users
How do channels make it possible for a product to flow from producers to consumers
intermediaries
who is involved in a distribution channel
producer, intermediaries, consumers
intermediaries include:
retailers, wholesalers, agents/brokers
Types of channels
direct channel
indirect channel
what is a direct channel
does not have any intermediares. producer to consumer
What is an indirect channel
involves intermediaries between producer and consumers
retailer , wholesalers
Unique channel structures
agents/brokers
role: have legal authority to represent producers, wholers, retailers.
C2C channel
(consumer to consumer)- direct
T or false, agents and brokers take ownership of products
false
T or F, agents/broker channel may or may not involve wholesalers or retailers
true
Multichannel distribution
can be delivered through both direct and and indirect distribution
Why do intermediaries exist
they add value
transactional functions
-buying, selling
logistical functions
-transporting, storing, sorting
facilitating functions
-payment processing, consumer financing, product testing, data/analysis
reasons why intermediaries arent always beneficial
mark-ups increase the price for consumers, can hurt sales.
Intermediaries may interfere with branding strategy (loss of control in how the products are presented)
channel conflicts can arise
what is a channel conflicts
occur when 2 channel members have contradicting goals with each other
what Horizontal channel conflict
occurs among channel members at same level (retailers competing on price, aggressive geographic expansions)
what is vertical channel conflict
occurs among channel members at different levels: asymmetric bargaining power, disintermediation.
ex: Producer vs retailer
How to avoid conflict
vertical integration: control more of the channel
vertical marketing channel
channel members act as a unified system
greater control, less conflicts, economies of scale
Independent marketing channel
channel members are independent, each seeks to maximize its own profit, result in poor performance& high prices
Types of VMS
Corporate
successive stages of production and distribution under one single ownership
contractual
successive stages of production/distribution based on contracts agreed by independent firms
administered
successive stages of production/distribution coordinated by one powerful channel member
