BUSM 2001 Lecture Notes - Lecture 9: Franchising, Twinkie, Multichannel Marketing
6 Mar 2018
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Document Summary
Intermediaries serve 3 functions: transactional, logistical and facilitating. Transactional deals with the buying and selling of the goods. Logistical is the management and assessment of the product. Facilitating is the financial aspect of selling the product. There are also many different types of channels to sell consumer products. Direct channels are products sold directly to the consumers with no intermediaries (dell, milk man). Indirect channels use at least one intermediary (toyota). Apple is an example of a company that uses both direct and indirect channels. For example, they sell their products at their own store and they also sell them at stores like bestbuy. Dual distribution is a firm that sells the same product through 2 different channels. Multichannel marketing (or omni-channel) is when a company uses a complimentary series of channels to sell their products (websites, catalogues etc). Each of these channels is designed to reach a different market segment. Strategic channel alliances are strategic alliances with distributors.
