MRKT 354 Lecture Notes - Lecture 8: Outsourcing, Direct Marketing, Marketing Channel
Document Summary
Understanding channel structure channel map: direct channel systems, use one or more direct channels to reach customers, with the business interfacing with customers at all contact points and retaining ownership of the product until delivery. Indirect channel systems: use one or more indirect channels with channel intermediaries taking ownership of the product and interfacing with customers at all customer contact points, mixed channel systems, use a combination of direct and indirect channels. A business reaches, sells to and services some customers directly but has channel intermediaries perform some of these function for other customers or a business and tis intermediaries separately interface with the same customers at different contact points. Managing customer interaction: when a business cannot directly interact with target customers, it must take care to select a channel system that is conducive to building effective customer relationships. Operating efficiency: direct marketing has higher margins but bear the cost of channel management and all mse.
