BUS-M 300 Lecture 16Outline of Last Lecture I. Global Companies or Global ConsumersII. Issues Facing Global BusinessesIII. Global vs. Multinational StrategiesIV. Marketing InternationallyV. Specific Entry Approaches in International MarketsOutline of Current Lecture VI. Marketing ChannelsVII. Direct vs. indirect channelsVIII. Choosing a Marketing ChannelIX. Market Channel ConflictsX. Supply ChainsCurrent Lecture- Marketing Channelso A marketing channel consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users.o Marketing channels make possible the flow of goods from a producer, through intermediaries to a buyer.These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute. Some intermediaries purchase items from the seller, store them, and resell them to buyers Others represent sellers but do not take title to productso How do we get products to market?o Why are marketing channels important? They help to reach perspective buyers, either directly or indirectly It is a prerequisite for successful marketing Create form, time, place, and possession value for consumer- Direct vs. indirect channels o Direct Channel - A marketing channel where a producer and ultimate consumers deal directly with each other.o Indirect Channels – Marketing channels where intermediaries are inserted between the producer and consumers and perform numerous channel functions.- Choosing a Marketing Channelo Target Market Coverage Selective Distribution - Lies between these two extremes and means that a firm selects a few retail outlets in a specific geographical area to carry its products. Intensive Distribution - Means that a firm tries to place its product and services in as many outlets as possible.  Exclusive Distribution - Is the extreme opposite of intensive distribution.o Satisfying Buyer Requirements How should information be communicated to consumers?- Convenience- proximity or driving time to a retail outlet or hours of operation- Variety- what breadth and depth of products should be carried by intermediaries?- Pre or post sale service- In what way should consumers be taken care of before, during, and after the saleo Profitability It is determined by the margins earned for each channel member and for the channel as a whole  Channel costs include distribution, advertising, and selling expenses The extent to which channel members share these costs determines the profitability of each member and of the channel as a whole- Marketing Channel Conflictso Vertical conflict- occurs between different levels in a marketing channel, such as amanufacturer and a retailero Horizontal conflict- occurs between intermediaries at the same level in a marketing channel, such as between two or more retailers and/or wholesalers that handle the same manufacture’s brands- Supply Chainso Supply chain- a sequence of firms that perform activities required to create and deliver a good or service to consumers or industrial users Includes supplies, wholesalers, and retailerso Supply chain management- the integration and organization of information and logistics activities across firms in a supply chaino Logistics management- the practice of organizing the cost-effective flow of raw materials, inventory and finished goods from point of origin to point of consumption to satisfy customer requirementso Responsive supply chain- products are moved along the supply chain when customers place orderso Efficient supply chain- designed to move mass consumption goods quickly to the