MKTG 317 Lecture Notes - Lecture 6: Strip Mall, Vertical Integration, Home Hardware
Document Summary
Place: making products/services available for use to the final customer, how a product gets to a customer, where it is sold. Distribution: the process that makes products available to consumers and business customers and places them where they can be purchased. Marketing channel: a collection of companies responsible for getting products from producers to customers, includes: Builds demand through advertising (cid:2) (cid:2) (cid:2) (cid:2) Has access to the markets you want. Does not demand too much support from the manufacturer. Benefits of cooperation: speeds up inventory replacement, helps to achieve ideal market exposure. Intensive, selective, exclusive distribution: reduces costs, improves service. Improving cooperation: communication between channel members, establishing clearly defined roles (cid:2) (cid:2) (cid:2) (cid:2) (cid:2) (cid:2) (cid:2) (cid:2) (cid:2) Conflict arises when: lack of communication leads to lack of coordination, diversification of intermediaries. Intermediaries broadening product lines and brands: channel members circumventing other members" roles.