Chapter 13 Marketing Channels I Marketing Channel products move from producer to business user or consumer a set of independent orgsanizations that ease ownership as the difference between the amount of i Discrepencies of Quantity ii Discrepiencies of Assortment intermidiareis middle men resellers a Channel Members product produced and the amount an end user wants to buy needs to receive full satisfaction from a product or products produced but a customer is not ready to buy it product and the location of widely scattered markets iii Temporal Discrepiences iv Spatial Discrepienceies the lack of all items a customer the difference between the location of a a situation that occurs when a product is b Functions performed by intermediaries i Logistics the efficient and cost effective flow and storage of goods services and relatied information into through and out of channel members companies II Making Channel Strategy Decisions ii Transactional iii Facilitating functions communicatign between buyers and sellers research and financing a Factors affecting channel choices i Market factors ii Product factors the more exopensive a product the less intermediaries it goes through iii Producer Factors producers with more resources use les schannels i b Levels of Distribution Intensity Intensive Distribution market coverage ii Selective Distribution retailers to eliminate all nut a few in any single area iii Exclusive Distribution is achieved by screening dealers and is a form of distribution aimed at maximum only one or a few dealers in a selective area b Cooperative Relationship loose relationship that is characterized by low relational investment and trust and usually taking the form of discreete interactions with no thought of future sale as informal sharing as needed for further each companies goals Integrated Relationship and has high leveles of trust a relationship that is tightly connected and linked a relationship b n companies that takes the form c III Types of Channel Relationships a Arms Length a Channel Power ability of a particular marketing channel member to IV Channel Relationships control or onfluence the behavior of other channel members intentionally affects another members behavior The channel with the most power clash of goals and methods among the members c Channel Leader d Channel Conflict a situation that occurs when one or more member b Channel Control ii Vertical Conflict i Horizontal Conflict occurs among channel members on the same level 2 wholesalers retailers etc channel most of the time between manufacturere and the wholesaler occurs between different levels in a marketing
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