MBA 706. Module #5
Channel Members - answer firms that a company partners with to actively promote and
sell a product as it travels its marketing channel to users
What is the simplest form of a marketing channel? - answer Consists of just two parties
- producer and consumer
ex: getting a haircut
Intermediaries - answer Businesses involved in selling the goods and services of
producers to consumers and other businesses. - Aka the orgs that a product passes
through prior to getting to you
What are the 4 forms of utility or value a channel offers? - answer time, form, place,
ownership
Supply Chain - answerthe group of firms that make and deliver a given set of goods and
services
Supply Chain Management - answerwhen firms are constantly monitoring their supply
chains and adjust them so they are at their most efficient
Wholesalers - answerobtain large quantities of products from producers, store them,
and break them down into cases and other smaller units more convenient for retailers to
buy.
Three types of wholesalers - answer-Merchant wholesalers
-Brokers and agents
-Manufacturers' and retailers' branches and offices
Retailers - answerbuy products from wholesalers, agents, or distributors, and then sell
them to consumers. (supermarkets, convenience stores, specialty stores, department
stores, superstores, warehouse clubs, outlets, online retailers, used retailers, pop ups,
direct marketing)
What is the strongest marketing channel? - answertwo; producer to consumer - called
DIRECT CHANNEL
indirect channel - answerincludes one of more intermediaries
industrial distributors - answerfirms that supply products that businesses of government
departments & agencies use but do not re-sell
, disintermediation - answercutting out the middle man - aka intermediaries
Why is using multiple channels a good idea/effective? - answerthe more channels your
customers utilize, the more loyal they are likely to be towards your product
Strategic channel alliances - answercompanies working together to maximize
distribution ex: Harley Davison and Best Western partnership
International Marketing Strategy - answersometimes difficult to penetrate due to
government regulations and or corruption. two ways to penetrate are through joint
ventures and by exporting your products
Push strategy - answermanufacturer convinces wholesalers, distributors, or retailers to
sell it's products. issue with this is that it doesn't focus on the needs of the actual
product users
Pull Strategy - answerfocuses on creating demand for a product among consumers so
that businesses will agree to sell a product
Channel Selection Factors - answerType of customer, type of product, channel partner
capabilities, the business environment & technology, competing products' marketing
channels
Intensive Distribution Strategy - answeroften used for convenience goods to try to sell
your products in as many outlets as possible
Selective Distribution Strategy - answerinvolves selling products at select outlets in
specific locations
Exclusive Distribution Strategy - answerinvolves selling products through one or very
few outlets (idea of scarcity principle and creating demand)
Gray Market - answerA market in which a producer hasn't authorized its products to be
sold.
Channel Conflict - answerA dispute among channel members
vertical conflict - answerConflict that occurs between two different types of members of
the channel.
horizontal conflict - answerConflict that occurs between organizations of the same type.
Vertical Marketing System - answerA channel structure in which producers,
wholesalers, and retailers act as a unified system. One channel member owns the
others, has contracts with them, or has so much power that they all cooperate.
Channel Members - answer firms that a company partners with to actively promote and
sell a product as it travels its marketing channel to users
What is the simplest form of a marketing channel? - answer Consists of just two parties
- producer and consumer
ex: getting a haircut
Intermediaries - answer Businesses involved in selling the goods and services of
producers to consumers and other businesses. - Aka the orgs that a product passes
through prior to getting to you
What are the 4 forms of utility or value a channel offers? - answer time, form, place,
ownership
Supply Chain - answerthe group of firms that make and deliver a given set of goods and
services
Supply Chain Management - answerwhen firms are constantly monitoring their supply
chains and adjust them so they are at their most efficient
Wholesalers - answerobtain large quantities of products from producers, store them,
and break them down into cases and other smaller units more convenient for retailers to
buy.
Three types of wholesalers - answer-Merchant wholesalers
-Brokers and agents
-Manufacturers' and retailers' branches and offices
Retailers - answerbuy products from wholesalers, agents, or distributors, and then sell
them to consumers. (supermarkets, convenience stores, specialty stores, department
stores, superstores, warehouse clubs, outlets, online retailers, used retailers, pop ups,
direct marketing)
What is the strongest marketing channel? - answertwo; producer to consumer - called
DIRECT CHANNEL
indirect channel - answerincludes one of more intermediaries
industrial distributors - answerfirms that supply products that businesses of government
departments & agencies use but do not re-sell
, disintermediation - answercutting out the middle man - aka intermediaries
Why is using multiple channels a good idea/effective? - answerthe more channels your
customers utilize, the more loyal they are likely to be towards your product
Strategic channel alliances - answercompanies working together to maximize
distribution ex: Harley Davison and Best Western partnership
International Marketing Strategy - answersometimes difficult to penetrate due to
government regulations and or corruption. two ways to penetrate are through joint
ventures and by exporting your products
Push strategy - answermanufacturer convinces wholesalers, distributors, or retailers to
sell it's products. issue with this is that it doesn't focus on the needs of the actual
product users
Pull Strategy - answerfocuses on creating demand for a product among consumers so
that businesses will agree to sell a product
Channel Selection Factors - answerType of customer, type of product, channel partner
capabilities, the business environment & technology, competing products' marketing
channels
Intensive Distribution Strategy - answeroften used for convenience goods to try to sell
your products in as many outlets as possible
Selective Distribution Strategy - answerinvolves selling products at select outlets in
specific locations
Exclusive Distribution Strategy - answerinvolves selling products through one or very
few outlets (idea of scarcity principle and creating demand)
Gray Market - answerA market in which a producer hasn't authorized its products to be
sold.
Channel Conflict - answerA dispute among channel members
vertical conflict - answerConflict that occurs between two different types of members of
the channel.
horizontal conflict - answerConflict that occurs between organizations of the same type.
Vertical Marketing System - answerA channel structure in which producers,
wholesalers, and retailers act as a unified system. One channel member owns the
others, has contracts with them, or has so much power that they all cooperate.
