Channel Management

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Marketing 6621

Marketing 6621

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  • 1. Channel Management $
  • 2. A path through which goods and services flow in one direction (from vendor to the consumer), and the payments generated by them that flow in the opposite direction (from consumer to the vendor). Channel
  • 3. The total number of channel members in a channel of distribution Channel length
  • 4. Businesses or individuals who assist in moving goods and services from the producer to the consumer Channel members
  • 5. Distribution Patterns
  • 6. A distribution pattern in which a producer sells a product through just one middle man in a geographic area Exclusive Distribution
  • 7. A producer sells a product through a limited number of middlemen in a geographic area. Selective Distribution
  • 8. Producer sells a product through every available wholesaler and retailer in a geographic area where consumers might look for it Intensive Distribution
  • 9. Channel Functions
  • 10. Companies rely on market research to determine their target markets’ needs and wants. Providing Marketing Information
  • 11. Costs and responsibilities can be shared. Promoting Products
  • 12. Offering to deliver and install products. Negotiating with Customers
  • 13. Selling large quantities of products to wholesalers and retailers Reducing Discrepancies
  • 14. Work together to finance activities to become more effective Financing and Risk-taking
  • 15. Horizontal vs. Vertical Conflict Horizontal Conflict: Occurs between channel members at the same level Ex: two retailers selling pet supplies compete to sell to the same target market Vertical Conflict: Occurs between channel members at different levels within the same channel Producers and wholesalers or producers and retailers