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Chapter 12

MKT 100 Chapter Notes - Chapter 12: Logistics, Telemarketing, Direct Marketing


Department
Marketing
Course Code
MKT 100
Professor
Fathima Saleem
Chapter
12

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Chapter 12: Distribution Channels (Place Management)
Distribution Channels
A set of interdependent organizations involved in the process of making a product or service
available for use or consumption
Players in Distribution Channel
Merchants: Buy, take title and resell the product
Manufacturer Suppliers
Manufacturers/Service Providers
Distributors/Wholesalers
Resellers (Value Added)
Retailers
End-Users: Consumers/Businesses
Agents: Search for customers and negotiate on behalf of manufacturers; don’t take title
Brokers
Manufacturer Representatives
Facilitators: Assist, but no title and no negotiating purchase or sale
Telemarketing firms
Banks
Transportation Companies
Distribution Channels, Supply Chains and Logistics
Distribution Channel
Logistics management
Supply Chain Management
Importance of Channels
Channel margins typically represent a large portion of the final price
Required to meet revenue targets by converting prospective clients to actual clients
Channels chosen affect all marketing P’s
The Role of Distribution
Distribution Channels Add
Value
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Indirect Supply Chain with Retailer
Functions Performed by Intermediaries
Why Delegate Roles to Intermediaries
May lack financial resources to carry out direct marketing
Can earn a greater return on main business through greater efficiency
Direct marketing is not feasible
Developing Distribution Channels
Direct Distribution
Indirect Distribution
Multi-Channel Distribution
Direct and Indirect Distribution
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