BSM 200 Lecture Notes - Lecture 5: Inventory Control, Loss Leader, Order Processing
16 Feb 2017
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Stage 2 ability to sell better than competition. Make sure customers can find your product. Producer retailer and/or wholesaler consumer. Channel of distribution - the path that a product takes from the producer to the consumer. Can have a direct channel (etsy etc. ) Channel intermediaries - informally called middlemen facilitate the movement of products form the producer to the consumer. Need to make sure the retailer likes the product made. For businesses that don"t have many resources (dealing with only one major retailer) Form utility: turning inputs into finished goods. Time utility: providing products at the right time. Place utility: offering products at the right place. Ownership utility: providing credit, cashing cheques, delivering products. Service utility: producing fast, friendly, personalized service. Retailers: the distributors that sell products directly to the ultimate users. Wholesaler: distributors that buy products from producers and sell them to retailers, other wholesalers or business users. Deals more directly with retailers rather than consumers.
