MKT 300 Exam 3 |Questions and Answers |100% Scores
Marketing Channel - -business structure of interdependent organizations from product
origin to consumer -> entities that carry product from manufacturer to consumer
-intermediaries involved
contractual obligations - -distribution channels are not easily modifiable to
-Functions of channels - -specialization/value addition
overcome discrepancies
contact efficiency
-Specialization/value addition - -e.g. finance
store is taking on a risk with financing and for that they want a return so they add value
-Quantity discrepancy - -the difference between the amount of product produced and the
amount an end user wants to buy.
happens when a manufacturer can produce x amount of product in a certain amount of
time and store only needs y amount. Some intermediary takes x and makes it y and is
compensated.
-Assortment discrepancies - -stores think through which assortments add value --> Ex:
buy gas and get car washed in one located; paint and brushes
-Time discrepancies - -something is produced at time x and don't want to consume till 30
days later. So between those times the place needs to store it which can be expensive and
have a bunch of associated costs
-Space discrepancies - -produced in place x and want in place y so transport costs money
-Contact efficiency - -reducing the number of stores customers must shop in to complete
their purchases
altering process from each buyer going to 4 different stores individually to putting one
retailer between each buyer so they only need to visit one store to see all the brands.
The retailer in between will markup the price because adding value
Ex: diagram in slides
-Channel Members - -Manufacturers
Wholesalers
Retailers
, Agents and Brokers
-Manufacturers - -produces
-Wholesalers - -Takes title to goods and then distributes these good further; also called a
jobber or distributor
buys and resells; distribute; actually owns the product and takes on a risk of items not
selling so will demand compensation for risk
-Retailers - -interface between wholesaler and customer; ex: amazon, publix
-Agents and Brokers - -Facilitate buying and selling, do not take title, earn commission
do not own what they are selling; earn commission. Ex: real-estate, airline travel bookers
-Direct sales - -contract between manufacturer and buyer
Types:
online, producer-owned stores Ex: apple products; avon skin care products, sherwin-
williams
-When do you go direct? - -Less dispersion
Small number of customers/small market. Ex: tesla, boeing
Complex product
Customization; the more complex the more likely you are to keep it more _____ to avoid
those training expenses from trying to train sales people who don't understand cuz
complex
High Perishability; ex: fruit
Larger Producer
Managerial and Marketing Expertise
Width of Lines --> if I can produce everything people want within myself than I can afford
to go direct. Ex: apple buys beats to get entire assortment in 1 store/place
Control --> can't dilute message; want to keep prestige. Ex: rolex vs. casio.
-Indirect Channels - -Wholesalers
Agent/Broker
Marketing Channel - -business structure of interdependent organizations from product
origin to consumer -> entities that carry product from manufacturer to consumer
-intermediaries involved
contractual obligations - -distribution channels are not easily modifiable to
-Functions of channels - -specialization/value addition
overcome discrepancies
contact efficiency
-Specialization/value addition - -e.g. finance
store is taking on a risk with financing and for that they want a return so they add value
-Quantity discrepancy - -the difference between the amount of product produced and the
amount an end user wants to buy.
happens when a manufacturer can produce x amount of product in a certain amount of
time and store only needs y amount. Some intermediary takes x and makes it y and is
compensated.
-Assortment discrepancies - -stores think through which assortments add value --> Ex:
buy gas and get car washed in one located; paint and brushes
-Time discrepancies - -something is produced at time x and don't want to consume till 30
days later. So between those times the place needs to store it which can be expensive and
have a bunch of associated costs
-Space discrepancies - -produced in place x and want in place y so transport costs money
-Contact efficiency - -reducing the number of stores customers must shop in to complete
their purchases
altering process from each buyer going to 4 different stores individually to putting one
retailer between each buyer so they only need to visit one store to see all the brands.
The retailer in between will markup the price because adding value
Ex: diagram in slides
-Channel Members - -Manufacturers
Wholesalers
Retailers
, Agents and Brokers
-Manufacturers - -produces
-Wholesalers - -Takes title to goods and then distributes these good further; also called a
jobber or distributor
buys and resells; distribute; actually owns the product and takes on a risk of items not
selling so will demand compensation for risk
-Retailers - -interface between wholesaler and customer; ex: amazon, publix
-Agents and Brokers - -Facilitate buying and selling, do not take title, earn commission
do not own what they are selling; earn commission. Ex: real-estate, airline travel bookers
-Direct sales - -contract between manufacturer and buyer
Types:
online, producer-owned stores Ex: apple products; avon skin care products, sherwin-
williams
-When do you go direct? - -Less dispersion
Small number of customers/small market. Ex: tesla, boeing
Complex product
Customization; the more complex the more likely you are to keep it more _____ to avoid
those training expenses from trying to train sales people who don't understand cuz
complex
High Perishability; ex: fruit
Larger Producer
Managerial and Marketing Expertise
Width of Lines --> if I can produce everything people want within myself than I can afford
to go direct. Ex: apple buys beats to get entire assortment in 1 store/place
Control --> can't dilute message; want to keep prestige. Ex: rolex vs. casio.
-Indirect Channels - -Wholesalers
Agent/Broker
