MKTG10001 Lecture Notes - Lecture 10: Product Type, Marketing Channel, Direct Market
27 Jul 2018
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Document Summary
place involves making goods/services available in the right quantities and at the right locations, when customers want them. Network of organisations that create time, place and possession value for customers. Product is primarily a service not a physical good. Producer uses intermediaries to reach consumers or end users. Stocking a product in as many outlets as possible (e. g. ) convenience goods, shopping products. Few stores granted exclusive rights to distribute products (e. g. ) prestige goods, speciality goods, expensive goods. New companies have limited financial resources can avoid having to invest for direct distribution. Manufacturers select specific intermediaries who match their market position and target market. Use of more than one but less than all intermediaries willing to carry the product (e. g. ) heterogeneous products, those customers seek out. Shaping and fitting the offer to the buyer"s needs. Reaching agreement on price and other terms of the offer so that ownership/position can be transferred. Shorter the channel structure the higher the control.
