marketing chapter 15

  1. marketing channel
    individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users
  2. Functions Performed by Intermediaries
    • transactional function: involves buying, selling, and risk taking; stock merchandise in anticipation of sales
    • logistical function: gathering, storing, and dispersing of products
    • facilitating functions: assist producers in making goods and services more attractive to buyers
  3. Transactional Function
    • Buying: purchasing products for resale or as an agent for supply of a product
    • Selling: contacting potential customers, promoting products, and seeking orders
    • Risk taking: assuming business risks in the ownership of inventory that can become obsolete or deteriorate
  4. Logistical Function
    • Assorting: creating product assortments from several sources to serve customers
    • Storing: assembling and protecting products at a convenient location to offer better customer service
    • Sorting: purchasing in large quantities and breaking into smaller amounts desired by customers
    • Transporting: physically moving a product to customers
  5. Facilitating Function
    • Financing: extending credit to customers
    • Grading: inspecting, testing, or judging products, and assigning them quality grades
    • Marketing information and research: providing information to customers and suppliers, including competitive conditions and trends
  6. consumer benefit from intermediaries
    • having the g/s you want, when you want them, where you want them, and in the form you want them
    • Four Utilities:
    • Time: having a product or service when you want it
    • Place: having a product or service available where consumers want it
    • Form: enhancing a product or service to make it more appealing to buyers
    • Possession: efforts by intermediaries to help buyers take possession of a product or service
  7. Marketing Channels for Consumer Goods and Services
    • Direct Channel: producer and ultimate consumers deal directly with each other
    • Indirect Channel:
    • retailer: retailer is large and can buy in large quantities from a producer; cost of inventory too expensive to use wholesaler
    • wholesaler: low-cost, low-unit value items that are frequently purchased by consumers (ie: candy, confectionery items, magazines)
    • agent: many small manufacturers and many small retailers; coordinate a large supply of the product
  8. electronic marketing channels
    employ the Internet to make goods and services available for consumption or use by consumers or business buyers
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marketing chapter 15