MKC1200 Chapter Notes - Chapter 13: Marketing Channel, Harvey Norman, Disintermediation

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26 Nov 2013
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Marketing channel it is a set of interdependent organisations that are involved in the process of making the product available to the users. Channel level it is a layer of intermediaries that brings the product and its ownership closer to the final buyer. Number of channel levels different products need different number of channel levels. Some companies prefer to have no intermediaries between the producer and the consumer and follow a direct marketing channel. Other companies use indirect marketing channels with one or more intermediaries. Channel 2 has one marketing intermediary between the producer and the consumer and it is usually a retailer. Channel 3 has two marketing intermediaries namely the wholesaler and then the retailer. It is used by small manufacturers of food, hardware and pharmaceuticals. In the business sector channel 2 has a business distributor and channel 3 has a sales branch and a business distributor. There are channel levels special for service sectors too.

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