COMM 223 Chapter Notes - Chapter 12: Walmart, Mary Kay, Direct Marketing
19 Feb 2015
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Intermediaries (members of the channels of distribution) may operate more efficiently than manufacturers in making goods available to target markets. Intermediaries use their specialization and scale of operations to reduce costs of distribution. They provide time, place and possession utility (make the product available when and where it is needed). Need for intermediaries: fewer shopping trips, lower selling efforts, lower shipping costs, lowering inventory and warehousing. Marketing facilities and specialists get product from producer to customer at right place and right time. It adds value, transforms assortments made by producers into assortments desired y consumers. Factors affecting number of channel levels: bulk, product value, perishability, volume. Marketing channels: a set of independent organizations involved in process of making product/ services available to customers. Direct marketing channel (channel 1): a marketing channel that has no intermediary levels (ex: Indirect marketing channel: a marketing channel containing one or more intermediary levels (all brands purchased through a retailer)
