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McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.
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FIGURE The variety of terms used for marketing intermediaries that vary in specificity and use in consumer and business markets 15-2
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Functions Performed by Intermediaries
NATURE AND IMPORTANCE OF MARKETING CHANNELS THE VALUE CREATED BY INTERMEDIARIES LO1 Marketing Channel Functions Performed by Intermediaries Transactional Function Logistical Function Facilitating Function Utilities Received by Consumers 15-3
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FIGURE Intermediaries minimize transactions and the cost of distribution for producers and customers 15-4
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FIGURE Marketing channel intermediaries perform three functions, each consisting of different activities 15-5
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Direct Channel Indirect Channel
CHANNEL STRUCTURE & ORGANIZATION MARKETING CHANNELS FOR CONSUMER GOODS AND SERVICES LO2 Direct Channel Indirect Channel Retailers WholesalersRetailers AgentsWholesalersRetailers 15-6
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FIGURE Common marketing channels for consumer offerings by the kind and number of intermediaries 15-7
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Direct Channel Indirect Channel
CHANNEL STRUCTURE & ORGANIZATION MARKETING CHANNELS FOR BUSINESS GOODS AND SERVICES LO2 Direct Channel Indirect Channel Industrial Distributor Agents AgentsIndustrial Distributors 15-8
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FIGURE Common marketing channels for business offerings by the kind and number of intermediaries 15-9
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Electronic Marketing Channels
CHANNEL STRUCTURE & ORGANIZATION ELECTRONIC & DIRECT MARKETING CHANNELS; MULTICHANNEL MARKETING LO2 Electronic Marketing Channels Direct Marketing Channels Multichannel Marketing 15-10
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FIGURE Consumer electronic marketing channels are similar to those for consumer and business offerings 15-11
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Strategic Channel Alliances
CHANNEL STRUCTURE & ORGANIZATION DUAL DISTRIBUTION & STRATEGIC CHANNEL ALLIANCES LO2 Dual Distribution Strategic Channel Alliances A firm reaches different buyers by employing two or more different types of channels for the same basic product.. One firms marketing channel is used to sell another firms products. 15-12
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FIGURE 15-7 Functions performed by independent wholesaler types
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CHANNEL STRUCTURE & ORGANIZATION CHANNEL INTERMEDIARIES
LO2 Merchant Wholesalers Full-Service Wholesalers General Merchandise (Full-Line) Wholesalers Specialty Merchandise (Limited-Line) Wholesalers 15-14
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CHANNEL STRUCTURE & ORGANIZATION CHANNEL INTERMEDIARIES
LO2 Merchant Wholesalers Limited-Service Wholesalers Rack Jobbers Cash and Carry Wholesalers Drop Shippers/Desk Jobbers Truck Jobbers 15-15
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CHANNEL STRUCTURE & ORGANIZATION CHANNEL INTERMEDIARIES
LO2 Agents and Brokers Manufacturer’s Agents Selling Agents Brokers Manufacturers Branch Offices Sales Offices 15-16
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FIGURE Three types of vertical marketing systems: corporate, contractual (most popular), and administered 15-17
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CHANNEL STRUCTURE & ORGANIZATION VERICAL MARKETING SYSTEMS
LO2 Administered Systems Channel Partnership 15-18
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CHANNEL CHOICE AND MANAGEMENT FACTORS AFFECTING CHANNEL CHOICE
LO3 Environmental Factors Consumer Factors Product Factors Company Factors 15-19
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CHANNEL CHOICE AND MANAGEMENT CHANNEL CHOICE CONSIDERATIONS
LO3 Target Market Coverage Intensive Distribution Exclusive Distribution Selective Distribution 15-20
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CHANNEL CHOICE AND MANAGEMENT CHANNEL CHOICE CONSIDERATIONS
LO3 Satisfying Buyer Requirements Information Convenience Variety Pre- or Post-Sale Service 15-21
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CHANNEL CHOICE AND MANAGEMENT CHANNEL CHOICE CONSIDERATIONS
LO3 Profitability Margins Earned Channel Costs 15-22
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CHANNEL CHOICE AND MANAGEMENT CHANNEL RELATIONSHIPS
LO4 Sources of Channel Conflict Vertical Conflict Disintermediation – Is a conflict that arises when a channel member bypasses another and sells the products directly.. Horizontal Conflict 15-23
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CHANNEL CHOICE AND MANAGEMENT CHANNEL RELATIONSHIPS
LO4 Channel Captain Channel Influence Economic Identification Expertise Legitimate Right 15-24
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CHANNEL CHOICE AND MANAGEMENT CHANNEL RELATIONSHIPS
LO4 Legal Considerations Dual Distribution Tying Arrangements Vertical Integration Refusal to Deal Exclusive Dealing..where a supplier requires channel members to sell only its products or restricts distributors from selling directly competitive products Exclusive Dealing Resale Restrictions 15-25
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FIGURE The Clayton Act and Sherman Act place legal restrictions on specific marketing channel strategies and practices 15-26
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