MGMT 105 Lecture Notes - Lecture 13: Customer Relationship Management, Exclusive Dealing, Price Discrimination
Document Summary
A marketing channel consists of individuals and firms involved in the process of making a product or service available for use or consumption by final or business customers. Distribution refers to the flow of goods from the producer or manufacturer through the intermediaries to the customer. Different product categories and different consumer segments may imply different channel/place structures. Place decisions are longer-term compared to other marketing mix variables. Facilitate the exchange process by cutting the number of contacts necessary. Adjust for discrepancies in the market"s assortment of goods and services via sorting. Pricing: terms of sale (credit, cash etc), financial risk. Product: customization, customer service/repairs, product selection & delivery, sales data feedback. Greater control and lower costs, especially via internet. Avoid negotiation and legal costs involved in going through middlemen. (ex. books sold through amazon) Indirect channels: producer sells via wholesalers & retailers. Promotional activities like personal selling, sales promotion, publicity, advertising done by retailer.
