Management and Organizational Studies 1021A/B Chapter : MOS Notes - Feb 6.docx

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1021A/B
• Professor: James O' Brien

Document Summary

Buyers benefit from well-structured and efficient distribution systems. A marketing channel consists of individuals and firms involved in the process of making a product or service available. Marketing channels make possible the flow of goods from a producer, through intermediaries, to a buyer: there are several types of intermediaries: Dealer: some intermediaries actually purchase items from the producer, store the,, and resell them to buyers. Intermediaries make possible the flow of products from producers to ultimate consumers by performing three basic functions: transactional function. The details of preparing and getting a product to buyers: facilitating function. Must be performed in a marketing channel. As the number of intermediaries between a producer and buyer increases, the channel is viewed as increasing in length. Direct channel is when a producers and ultimate consumers deal directly with each other: because there are no intermediaries with a direct channel, the producer must perform all channel functions.