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Chapter 12

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MARK 201
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CHAPTER 12 MARKETING CHANNELS DELIVERING CUSTOMER VALUEFirms work in large supply chain and marketing channelHow the entire marketing channel competes will affect the businessEnterprise RentaCar is the 1car rental company Hertz followsEnterprise RentaCar has a homecity marketthey serve to people who are not travelers at airports have their car in a garage or simply need to rent a carWeCar for short trips in places with little parkingGood distribution strategies are good for delivering customer value and creates a competitive advantage1SUPPLY CHAINS AND THE VALUE DELIVERY NETWORKSupply chain has upstream firms that supply raw materials components parts info finan ces and expertise needed to create productservice and downstream marketingdistribution channels wholesalers and retailers partnershigh level of focus because they are vital to the connection between the firm and its customersSense and respond view of the market starts with needs of target customers company responds by organizing chain of resources to create CUSTOMER VALUEFORD manages many supply chains sponsors others websitesContinuously evolving the value delivery network companies suppliers distributors and customers who partner to improve customer valueApple managers a network of people suppliers and resellersiFunctions of Middlemen IntermediariesChannel PartnersDistribution Channel make productservice available for consumption involves transporting warehousing customer contact etc reduction in the required number of transactions promotion financing matching supplydemand sorting accumulation breaking bulk packs assorting etc provide economies risk taking when they assume title to the goods involves longterm commitments with other firmsMcDonalds Ford HP can make changes easily makes it harder when dealing with franchisees retailers etcHow well a product does may depend on channel membersKodak EasyShare camera sold in BestBuy stores because the onthefloor staff could educate customers Companies dont pay enough attention to this can gain competitive advantageFedEx Amazoncom and Enterprise did really welliiHow Channel Members Add ValueChannel partners make it easier to reach target market this is how the add valueIntermediaries reduce to amount of work that must be done by the producers and consumers they transform the assortment of products made by producers into what is wanted by consumers Help with regulating supply and demandUnilever retailers allow you to buy only as much soap as you needtimeaInformation research needed to planbPromotion spreading communication about productcContact communicating with buyers
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