14-2 The Role of Marketing
Channels in Supply Chains
Questions and Complete
Solutions Graded A+
marketing channel - Answer: - a group of individuals and organizations that direct the flow of products
from producers to customers within the supply chain
- some marketing channels are direct
- most are indirect
major role of marketing channel - Answer: - to make products available at the right time at the right
place in the right quantities
- accomplished through achieving synergy among operations management, logistics management and
procurement
driving force of marketing channel decisions: - Answer: - providing customer satisfaction
- buyers' needs and behavior are important concerns
direct marketing channels - Answer: The product goes directly from the producer to the customer
indirect marketing channels - Answer: - marketing intermediates
- wholesalers and retailers
marketing intermediaries - Answer: middlemen that link producers to other intermediaries or ultimate
consumers through contractual arrangement or through purchase and resale of products
key roles in CRM - Answer: - distribution activities
- maintaining databases and info systems to help all members of marketing channel maintain effective
CRs
, example of maintaining databases and info systems to help all members of marketing channel maintain
effective CRs - Answer: - Mercury Gate provides transportaiton management software to firms to
streamline logistics
- works directly with shippers and 3-party logistics companies and brokers to ensure that its customers
have efficient supply chains, using analytics and a robust info database pulled from its many clients
wholesalers - Answer: buy and resell products to other wholesalers, retailers, and industrial customers
retailers - Answer: purchase products and resell them to customers
significance of marketing channels - Answer: - not necessary to make marketing channel decisions
before other decisions, but they can heavily influence other elements of marketing mix
- channel decisions are critical bc they determine a product's market presence and accessibility
- without marketing channel operations that reach right customer at right time, even the best
goods/services will not be successful
- marketing channel decisions have strategic significance bc they generally entail long-term
commitments among a variety of firms
- distribution channels are least flexible component of marketing mix
- once a firm commits to a distribution channel, it is difficult to change
marketing channels may serve many functions: - Answer: creating utility and facilitating exchange
efficiencies
4 types of marketing channel utility - Answer: - time
- place
- possession
- form
time utility - Answer: having products available when customers want
example of time utility - Answer: netflix
Channels in Supply Chains
Questions and Complete
Solutions Graded A+
marketing channel - Answer: - a group of individuals and organizations that direct the flow of products
from producers to customers within the supply chain
- some marketing channels are direct
- most are indirect
major role of marketing channel - Answer: - to make products available at the right time at the right
place in the right quantities
- accomplished through achieving synergy among operations management, logistics management and
procurement
driving force of marketing channel decisions: - Answer: - providing customer satisfaction
- buyers' needs and behavior are important concerns
direct marketing channels - Answer: The product goes directly from the producer to the customer
indirect marketing channels - Answer: - marketing intermediates
- wholesalers and retailers
marketing intermediaries - Answer: middlemen that link producers to other intermediaries or ultimate
consumers through contractual arrangement or through purchase and resale of products
key roles in CRM - Answer: - distribution activities
- maintaining databases and info systems to help all members of marketing channel maintain effective
CRs
, example of maintaining databases and info systems to help all members of marketing channel maintain
effective CRs - Answer: - Mercury Gate provides transportaiton management software to firms to
streamline logistics
- works directly with shippers and 3-party logistics companies and brokers to ensure that its customers
have efficient supply chains, using analytics and a robust info database pulled from its many clients
wholesalers - Answer: buy and resell products to other wholesalers, retailers, and industrial customers
retailers - Answer: purchase products and resell them to customers
significance of marketing channels - Answer: - not necessary to make marketing channel decisions
before other decisions, but they can heavily influence other elements of marketing mix
- channel decisions are critical bc they determine a product's market presence and accessibility
- without marketing channel operations that reach right customer at right time, even the best
goods/services will not be successful
- marketing channel decisions have strategic significance bc they generally entail long-term
commitments among a variety of firms
- distribution channels are least flexible component of marketing mix
- once a firm commits to a distribution channel, it is difficult to change
marketing channels may serve many functions: - Answer: creating utility and facilitating exchange
efficiencies
4 types of marketing channel utility - Answer: - time
- place
- possession
- form
time utility - Answer: having products available when customers want
example of time utility - Answer: netflix
