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What do you think? Ch. 1Marketing Channels: Structure and Functions Marketing Channels Middleman or Intermediaries Ch. 1 - 1Marketing Channels: Overview I. Introduction - Definition: A set of interdependent organizations involved in the process of making a product of service available for consumption or use.* - Four Types of Utility: Form, Time, Place, and Possession utility Marketing Channels Act as Exchange Facilitators Ch 1-2The Economic Rationales for Marketing Channels A. The Efficiency Rationale for Intermediaries (Figure 1-1) B. The Discrepancy of Assortment and Sorting C. Routinization D. Searching Ch. 1-3Functions and Flows in Marketing Channels* A. Functions in Marketing Channels Carrying of Inventory Demand generation Physical distribution After-sale service Extending credit to customers B. Flows in Marketing Channels (Figure 1-2) - Physical Possession - Ownership - Promotion - Negotiation - Financing - Risking - Ordering - Payment Ch 1-4Analyzing Marketing Channel Structures A. Channels as a Network of Systems - Interdependent and Interrelated systems - Open systems B. Service Outputs as Determinants of Channel Structure - Spatial Convenience - Lot size - Waiting or delivery time - Product variety and assortment - Customer Service Ch 1-4Analyzing Marketing Channel Structures (Cont’d) C. Marketing Cost as a Determinant D. Additional Driving Factors: Technological, Cultural, Geographic, and Social FIGURE 1-4: ORGANIZATION OF THE TEXT What does marketing channels mean? What do marketing channels do? What are the important changes in marketing channels? Key Topics: Economic Rationales for marketing channels Functions and Flows in Marketing Channels How would you study marketing channels? Service output demand Originally defined as: Paths through which goods or materials can move from producers to users. create value by reduc
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