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Chapter 15

MARK 3000 Chapter Notes - Chapter 15: Specific Storage, Electronic Document, Forklift


Department
Marketing
Course Code
MARK 3000
Professor
Grantham
Chapter
15

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- Marketing channel (Supply Chain) Management
Technique firms employ to efficiently/effectively integrate their suppliers, manufacturers,
warehouses, stores, and transportation intermediaries into a seamless operation
Merchandise is produced and distributed in the right quantities, to the right locations, at the
right time
While minimizing costs and satisfying customer service levels
1. The Importance of Marketing Channel/Supply Chain Management
a. Logistics physical movement of goods/info from point of raw material supply to point
of consumption
b. Wholesalers iddlee – firms that buy products from manufacturers and resell
them to retailers; retailers sell products directly to consumer
c. Viral Marketing Program encourages people to pass along a marketing message to
other potential customers (go viral)
d. Marketing Channels Add Value gathers the raw materials, makes it available to
customers, educates customers or even delivers/installs (each channel does something
different)
e. Marketing Channel Management Affects Other Aspects of Marketing
i. Must coordinate how/when critical components reach a factory
ii. Distribution center: a facility for the receipt, storage &redistribution of goods to
company stores/customers; may be operated by
retailers/manufacturers/distribution specialists
iii. Fulfillment: warehouse facilities used to ship merchandise directly to customers
f. Intermediaries Overcome Discrepancies
i. Discrepancy of Quantity manufacturer produces in large volume, consumers
buy in small volume
ii. Discrepancy of Assortment produces many of one item, consumers buy one of
many items
iii. Temporal Discrepancy difference in when something produced and when it is
purchased
iv. Spatial Discrepancy difference between where something is produced and
where it is purchased
2. Designing Marketing Channels
a. Direct Channel the manufacturer sells directly to the buyer (can be someone making
something out of their own home and selling it to people)
i. Disintermediation : Elimination or reduction in the number of levels
b. Indirect Channel one or more intermediaries work with manufacturers to provide
goods/services to customers
i. Wholesales ae pealet he ustoes do’t u lage eough uatit to
deal with them directly or in areas where large retailers are rare
ii. Intermediaries
1. Retailer - sells mainly to final consumers
2. Merchant wholesaler
a. Buys and takes title (ownership) to goods from manufacturing
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