Marketing Test 3

Determine what type of intermediary a manufacture should use

products are distributed through unauthorized channel intermediaries

selling on ebay for a cheaper price than the manufacture approves of

standarize their service quality across different geographic regions in order to maintain their brand image

suppliers, service processes, and customer service have quality standards that are maintained regardless of where the service is purchased or consumed

Choosing the right distribution channel can increase the times that servies are available or add to customer convience

• Service firms are experimenting with different distrubution channels for their services
• Consumers can now purchase plane tickets, plan a vacation cruise, reserve a hotel room, pay bills, purhase mutual funds and receive electronic newspapers online

If service firms don't have the capacity to meet demand, they must either turn down some prospective customers, let service levels slip, or expand capacity. 

At tax time a tax preparation firm may have so many customers desiring its services that it either has to turn customers down or hire temporary help

Minimizing the amount of time customers wait inline is a key factor in maintaing the quality of servie

• Channel members rely heavily on one another
• The joint efford of all channel members to create a channel that serves customrs and creates a competitive advantage

Working together to gain advantage

• Vital if each member is to gain something from other members
•      retailers, wholesalers, manufactures, and suppliers can speed up inventory replenishment, imporve customer service and reduce the total cost of the marketing channel

• Occurs between different levels in a marketing channel, most typicallly between the manufacturer and wholesaler or the manufacturer and retailer
•      Producer vs wholesaler conflict-producer chooses to bypass the wholesaler and deal directly with the consumer or retailer

Healthy competition-Same Level

• occurs among channel members on the same level
•      two or more different wholesalers or two or more different retailers that handle the same manufactururs brands
•      Goodyear made the decision to distribute its tires through retailers such as Sears and Wal-Mart in addition to the exclusive dealerships it had established.

A clash of goals and methods between distrubution channel members 

To achieve control, a channel member assumes channel leadership and exercises authority and power

one channel members power intentionally affects another members behavior

channel member's ability to control or influence the behavior of other channel members

Closely bonded relationships characterized by formal arrangements that explictly define the relationsips of the channel members

• Vertical integration-all related channel members are woned by a single legal entity
• Supply chain- several companies act as one

Used when a company wants less ambiguity but doesn't want long term and or capital investment necessary in an integrated relationship

more flexible than integrated relationsips but are more structured than arms length relationships and inclucde franchising and licensing and joint ventures and strategic alliances

temporary or one-time-only and often arise froma sudden or unique need

a relationship between companies that is loose, characterized by low relational investment and trust and usually taking the form of a series of discrete transactions with no or low expectation of future interaction or service

a form of distribution that establishes one or few dealers within a given area

a form of distribution achieved by screening dealers to eliminate all but a few in any single area

a form of distribution aimed at having a product available in every outlet where target customers might want to buy it

a cooperative agreement between business firms to use the other already established distribution channel

used when its too expensive or time consuming 

NFL using verizon to broadcast sunday games

the use of tow or more channels to distribute the same product to target markets

sell instore, online and through catalogs

business and industrial products


producers sell directly to consumers

Transactional Logistical facilitating

• research and financing 
• getting answers to key questions (who are buyers, where are they located, why do they buy)
• financing ensures that channel members have the money to keep the products moving through the channel to the consumer

• The efficient and cost-effective foward and reverse flow and storage of goods, services and related information into, through, and out of channel member companies
•      transportation and storage of assets, sorting, accumulation, consolidation, and or allocation for the purpose of conforming to customer requirements

Involve contacting and communicationg with prospective buyers to make them aware of existing products and explain their features, advantages, and benefits

wholesaling intermediaries whoe do not take title to a product but facilitate its sale from producer to end user by representing retailers, wholesalers, or manufactures

an institution that buys goods from manufactures and resells them to businesses, government agencies, and other wholesalers or retailers and that receives and taktes title to goods, stores them in its own warehouses, and later ships them

a channel intermediary that sells mainly to consumersSpatial discrepancy

the difference between the location of a producer and the location of widely scattered markets

a situation that occurs when a product is produced but a customer is not ready to buy it

the lack of all the items a customer needs to receive full satisfaction from a product or products

the difference between the amount of product produced and the amount an end user wants to buy

all parties in the marketing channel who negotiate with one another, buy and sell products, and facilitate the change of wonership between buyer and seller in the cousre of moving the product from the manufaturer into the hands of the final consumer

a set of interdependent organizations that eases the transferof ownership as products move from producer to business user or consumer