How a Marketing Intermediary 88 Reduces the Number of Channel Transactions 3 Store 6 A.Number of contacts without a distributor B.Number of contacts with a distributor MxC=3x3=9 M+C=3+3=6 Manufacturer Customer Store Distributor
How a Marketing Intermediary Reduces the Number of Channel Transactions
3.Distribution Channel Functions These Functions Should be Assigned to the Channel Member Who Can Perform Them Most Efficiently and Effectively to Provide Satisfactory Assortments of Goods and Services to Target Customers. Risk Taking Information Financing Promotion Physical Contact Distribution Negotiation Matching
Contact Financing Risk Taking Information Promotion Negotiation Matching Physical Distribution These Functions Should be Assigned to the Channel Member Who Can Perform Them Most Efficiently and Effectively to Provide Satisfactory Assortments of Goods and Services to Target Customers. 3. Distribution Channel Functions
4.Number of Channel Levels Channel Level-Each Layer of Marketing Intermediaries that Perform Some Work in Bringing the Product and its Ownership Closer to the Final Buyer. Channel 1 Direct Channel M C Channel 2 Indirect Channel R Channel 3 M W R Channel 4 W R
M W J R C M W R C M R C M C Channel 1 Channel 2 Channel 3 Channel 4 Channel Level - Each Layer of Marketing Intermediaries that Perform Some Work in Bringing the Product and its Ownership Closer to the Final Buyer. 4. Number of Channel Levels Direct Channel Indirect Channel