Podcast
Questions and Answers
What are the three primary functions performed by channel intermediaries?
What are the three primary functions performed by channel intermediaries?
Which of the following describes forward integration?
Which of the following describes forward integration?
Which type of marketing channel includes mail-order and telemarketing?
Which type of marketing channel includes mail-order and telemarketing?
In channel member coordination, which form of influence does not involve direct authority?
In channel member coordination, which form of influence does not involve direct authority?
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What is the main benefit of reverse logistics?
What is the main benefit of reverse logistics?
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Which of the following is an example of backward integration?
Which of the following is an example of backward integration?
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How do wholesaler-sponsored voluntary chains function?
How do wholesaler-sponsored voluntary chains function?
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What does supply chain management primarily focus on?
What does supply chain management primarily focus on?
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Study Notes
Channel Intermediary Functions
- Channel intermediaries perform three key functions: Transactional, logistical, and facilitating functions.
Channel Structures
- Different channel structures cater to consumer and business needs. These structures provide different utilities: Time, place, form, and possession utilities.
Forward Integration
- Forward integration occurs when a producer owns the intermediary at the next level.
Backward Integration
- Backward integration happens when a retailer controls the manufacturing operation.
Channel Choice and Market Coverage
- Direct-to-consumer marketing channels include mail-order, direct mail, catalog, telemarketing, interactive media and televised home shopping. Multichannel or dual distribution strategies are often easier and cheaper for global marketing.
Channel Coverage - Vertical and Horizontal Integration
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Vertical Integration:
- Corporate: Forward and backward integration are types of this approach.
- Contractual: Independent product and distribution firms collaborate. Examples include wholesaler-sponsored voluntary chains, retailer-sponsored cooperatives, and franchising.
Channel Captain
- A channel captain coordinates, directs, and supports other channel members.
- Influence is exerted through four mechanisms:
- Economic: Rewarding other members.
- Expertise: Possessing specialized skills.
- Identification: Developing relationships with other members.
- Legitimate Rights: Legal contracts.
Reverse Logistics
- Logistics management: Focuses on customer satisfaction, optimized organization & flow, cost-effective decision making, and excellent customer service.
- Supply chain management: Integrates information and logistics across multiple firms to enhance value creation for consumers.
- Reverse logistics: Focuses on material reclamation (recyclable/reusable), rework and repair, environmental benefits, minimized waste, and lower operating costs.
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Description
Explore the key functions and structures of marketing channels in this quiz. Learn about transactional, logistical, and facilitating functions, as well as concepts like forward and backward integration. Discover different channel choices and their relevance in market coverage.
