MGM Lecture 21
MGM Lecture 21 301
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This 2 page Class Notes was uploaded by Alex on Thursday April 21, 2016. The Class Notes belongs to 301 at University at Buffalo taught by Dr. Dick in Spring 2016. Since its upload, it has received 65 views. For similar materials see Marketing in Business, management at University at Buffalo.
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Date Created: 04/21/16
MGM – Lecture 21 Channel Strategy: o Creating Time & Place Utility: Time Utility – Convenient & quick for customer to get product How many retailers the company deals with; more = better/faster Convenience how many stores there are, their location, & placement in particular stores Place Utility – where item is located Convenience – lots of retailers/locations Prestige – “something special” at a particular location o Channels of Distribution v. Physical Distribution: Logistical Functions: moving products (methods of delivery) Asserting – variety of products, what products they carry Transporting Transactional Functions: no physical movement of product Selling – manufacturer’s agent will go to retailer to try & sell a bulk of product (wholesale) Risk Taking – who takes the risk when consumer returns/does not like product – negotiation Facilitating Functions: no physical movement, but facilitates movement Financing – terms/agreements with retailers to kepp them and handle prducts Market Research – retailers convince manufacturers to use them *Breaking Bulk – Manufacturer wants to sell product wholesale/by the pallet, by the truckload, but consumer wants to buy individual units of product. Manufacturer will sell in bulk to retailer, who will break it down into individual units o 3 Options for Channel Coverage: Intensive Distribution – maximize the number of retailers to sell your product; meant for products that don’t need a lot of support Selective Distribution – a lot of retailers, but not intensive; needs some support Exclusive Distribution – specialized product; requires a lot of support; well-trained retailer in a particular location o Channels: Direct: Manufacturer End User Indirect: Manufacturer Retailer End User (causes channel conflict) “Typical:” Manufacturer Wholesaler Retailer End User Citation: Dick, Alan, and Richard Lutz. "Channel Strategy." University at Buffalo. Buffalo. 2016. 20 Apr. 2016. <https://ublearns.buffalo.edu/webapps/blackboard/content/listContent.jsp? course_id=_138266_1&content_id=_3613982_1>.
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