MKT 230 - Chapter 15 Flashcards

Questions and Answers

What is the purpose of a marketing channel?

It makes possible the flow of products and services from a producer, through intermediaries, to a buyer.

Manufacturers often use intermediaries to distribute their products because intermediaries ______.

create value for buyers

In a consumer market, an intermediary who sells to other intermediaries is called a(n) ______.

wholesaler

What two intermediaries have legal authority to act on behalf of the manufacturer?

agent, broker Signup and view all the answers

Compared to marketing channels for consumer products, business channels exhibit what characteristics? (Select all that apply)

The channel tends to rely on one intermediary or none at all. Signup and view all the answers

What are two examples of a direct to consumer marketing channel?

Buying something from the Home Shopping Network, ordering something from the Harry and David food and gift catalog. Signup and view all the answers

What are the three major types of vertical marketing systems?

administered, corporate, contractual Signup and view all the answers

What are the steps involved when aligning a supply chain with a marketing strategy?

Understand the customer, understand the supply chain, harmonize the supply chain with the marketing strategy. Signup and view all the answers

Disintermediation involves ______.

a channel member bypassing another member to sell or buy product directly Signup and view all the answers

Study Notes

Marketing Channels

Facilitate the flow of products and services from producers to consumers through intermediaries.
Key function: create value for buyers by making distribution more efficient.

Intermediaries in Distribution

Intermediaries boost manufacturer efficiency by offering market access and service.
A wholesaler sells to other intermediaries in a consumer market.

Agents and Brokers

Agents and brokers have legal authority to act on behalf of manufacturers, facilitating sales and negotiations.

Differences in Marketing Channels

Business marketing channels are usually shorter and often involve fewer intermediaries compared to consumer product marketing channels.

Direct to Consumer Channels

Examples include purchases from the Home Shopping Network and ordering from the Harry and David catalog, highlighting direct engagement with consumers.

Vertical Marketing Systems

There are three major types:
- Administered
- Corporate
- Contractual
These systems help organize and manage distributor relationships.

Aligning Supply Chains with Marketing Strategy

Key steps include:
- Understanding customer needs
- Understanding the existing supply chain
- Harmonizing the supply chain to align with marketing efforts.

Disintermediation

Defined as a channel member bypassing another member to directly sell or purchase a product, affecting traditional distribution methods.

Description

Test your knowledge on marketing channels with these flashcards from MKT 230, Chapter 15. Learn about the roles of intermediaries and the flow of products from producers to buyers. Perfect for those studying marketing concepts and terminology.