FM 117 Lecture 8: Marketing Channel

• School: FIT
• Department: Fashion Business Management
• Course: FM 117
• Professor: liebmann

Document Summary

A set of interdependent organizations that eases the transfer of ownership as products move from producer to business user or consumer. Negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving the product from the manufacturer into the hands of the final consumer. Create time, place, form, and exchange utility a. b. c. d. Specialized expertise of channel members enhances the overall performance of the channel. Time and place utility is created when a transport company moves boxes from the place of manufacture to the store near customers. Form utility is created when channel members transform raw materials into a consumable form for customers. Exchange utility is created when channel members (usually retailers) swap the product for money. Retailer: firms in the channel that sells directly to the customers.