m 3.07 distribution channels. intermediary: “middle man” # of channels: the more common the...
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M 3.07
Distribution Channels
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Distribution Channels
• Intermediary: “middle man”
• # of Channels: the more common the item, the more channels involved
• Distribution intensity: the number of retailers in the channel– Leads to ideal market exposure
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Channel w/WholesalerPRODUCER
WHOLESALER
RETAILER
CONSUMER
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Channel w/Agent
• Used when producer does not want responsibility for selling activitiesPRODUCER
AGENT
CONSUMER
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Adding Value To Product
• Perform channel activities expertly
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Technology & Channel Mgt
• Some businesses can distribute most/all of their products via Internet
• Easier to monitor channel members’ activities
• Can decrease the amount of intermediaries necessary
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Global Positioning System
• Allows companies to track movements of drivers & vehicles
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Impact of Channel Mgt on Customer Service
• Products in stock
• Timeliness
• Communicate effectively
• Limit backorders
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Distribution Patterns
• Intensive: use all available outlets to saturate market
• Selective: limited outlets in area
• Exclusive: allows producer to maintain tight control over product