MGM 301 Lecture Notes - Lecture 5: Exclusive Dealing, Vertical Integration, Franchising

• School: University at Buffalo
• Department: Management Marketing
• Course: MGM 301
• Professor: Dick Alan

Document Summary

Mgm 301 chapter 15(managing marketing channels and wholesaling) Value created by intermediaries: intermediaries make selling goods and services more efficient because they minimize the number of sales contacts necessary to reach a target market, industry transactions reduce from 16 to 8. Functions performed by intermediaries: make possible the flow of products from producers to buyers by performing 3 functions: Transactional function- buying, selling, risk taking cuz they stock merchandise in anticipation of sales. Logistical function- gathering, storing, and dispersing of products. Facilitating functions- assists producers in making goods and. Consumer benefits from intermediaries service more attractive to buyers: marketing channels help create value for consumers through. Form-enhance product to make more appealing to buyers. Possession-efforts by intermediaries to help buyers take possession of product. Marketing channels for consumer goods and services: producer wholesaler retailer consumer, direct channel-when producer and ultimate consumer deal directly with each other and consumer, indirect channel- when intermediaries are inserted between producer.