Marketing Channels and Functions

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Questions and Answers

What are the three primary functions performed by channel intermediaries?

  • Transactional, logistical, and promotional functions
  • Facilitating, coordinating, and logistical functions
  • Transactional, logistical, and facilitating functions (correct)
  • Financial, logistical, and facilitating functions

Which of the following describes forward integration?

  • A manufacturer sells directly to consumers
  • A retailer buys a wholesaler
  • A retailer owns its supply chain
  • A producer owns an intermediary at the next level down (correct)

Which type of marketing channel includes mail-order and telemarketing?

  • Direct-to-consumer marketing channels (correct)
  • Backward integration marketing
  • Multichannel marketing
  • Channel captain marketing

In channel member coordination, which form of influence does not involve direct authority?

<p>Identification (A)</p> Signup and view all the answers

What is the main benefit of reverse logistics?

<p>Lowering operating costs and benefiting the environment (B)</p> Signup and view all the answers

Which of the following is an example of backward integration?

<p>A retailer buying a wholesaler (C)</p> Signup and view all the answers

How do wholesaler-sponsored voluntary chains function?

<p>By independent retailers coordinating buying, merchandising, and inventory management (B)</p> Signup and view all the answers

What does supply chain management primarily focus on?

<p>Integration of information and logistics across firms (B)</p> Signup and view all the answers

Flashcards

Channel Intermediary Functions

Transactional, logistical, and facilitating functions performed by intermediaries to support a channel.

Channel Structures for Consumers & Businesses

Different structures of marketing channels catering to diverse customer groups (consumers/businesses).

Forward Integration

Producer acquiring intermediary level from their channel

Backward Integration

Retailer owns manufacturing operations.

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Channel Choice

Variety of marketing channels used to reach consumers, including direct-to-consumer methods (mail-order, etc.) and multi-channel marketing approaches.

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Channel Coverage

The extent to which a channel covers the target market, encompassing vertical and horizontal integration (corporate & contractual)

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Channel Captain

A coordinator and leader within a distribution channel, influencing members through various forms (economic, expertise, identification, and legal).

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Reverse Logistics

Logistics management aimed at reclaiming recyclable materials and effectively reworking products.

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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

  • 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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