MARKETNG 300 Study Guide - Final Guide: Disintermediation, Customer Service, Clement Martyn Doke
Document Summary
Learning objectives: explain what is meant by a marketing channel of distribution and why intermediaries are needed. A marketing channel consists of individuals and firms involved in the process of making a product of service available for use or consumption by consumers or industrial users. Marketing channels make possible the flow of goods from a producer, through intermediaries, to a buyer. Marketing channels help create value for consumers through time, place, form, and possession utilities. Traditional marketing channels can be either direct or indirect. The most common channels are: producer consumer. Direct channel; producer must perform all channel functions: producer retailer consumer. Most common when a retailer is large and can buy in large quantities from a producer or, When the cost of inventory makes it too expensive to use a wholesaler: producer wholesaler retailer consumer. Most common for low-cost, low-unit value items that are frequently purchased by consumers: producer agent/broker wholesaler retailer consumer.
