TAILIEUCHUNG - Lecture Basic Marketing: A global-managerial approach: Chapter 11 - William D. Perreault, E. Jerome McCarthy

In chapter 11 you will understand how and why marketing specialists develop to make channel systems more effective. Understand the universal functions of marketing. Understand why some firms use direct channel systems while others rely on intermediaries and indirect systems. Understand how to develop co-operative relationships - and avoid conflict - in channel systems. | Chapter 11: Place and Development of Channel Systems When you finish this chapter, you should 11-2 Chapter 11 Objectives 1. Understand what product classes suggest about Place objectives. 2. Understand why some firms use direct channel systems while others rely on intermediaries and indirect systems. 3. Understand how and why marketing specialists develop to make channel systems more effective. 4. Understand how to develop cooperative relationships— and avoid conflicts—in channel systems. 5. Know how channel members in vertical marketing systems shift and share functions—to meet customer needs. 6. Understand the differences between intensive, selective, and exclusive distribution. 7. Understand the important new terms. Strategy Decision Areas in Place Exhibit 11-1 11-3 Type of channel Type of physical distribution facilities needed How to manage channels Middlemen/ facilitators needed Degree of market exposure desired Indirect Direct Place objectives Customer service level desired Summary Overview Place is the part of the marketing mix, the 4Ps, that deals with making goods and services available in the right quantities and locations when customers want them. Strategy Decision Areas in Place Channel of Distribution. A channel of distribution refers to any series of firms or individuals who participate in the flow of products from producer to final user or consumer. How best to choose among the alternative channels that might be used and how to organize the activities in the chosen channel are key strategy decision areas. Place Objectives. Place objectives can be derived from product class descriptions. This is a logical relationship as different levels of customer urgency, convenience, and product information-needs naturally suggest different place needs as well. Choosing Place Arrangement. Just as the same product can be categorized as both a consumer and a business product, more than one place arrangement may be appropriate, indeed needed, to reach different .

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