BUSINESS Chapter 4

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1、Chapter4ChannelsofdistributionDistributionchannelAsetofinterdependentorganizationsinvolvedintheprocessofmakingaproductorserviceavailableforuseorconsumptionbytheconsumerorbusinessuser.PhilipKotlerAlternatedistributionchannels*Sellingdirect,suchasviamailorder,Internetandtelephones

2、ales(orthroughstoresofitsown)*Agent,whotypicallysellsdirectonbehalfoftheproducer*Distributor(alsocalledwholesaler),whosellstoretailers*Retailer(alsocalleddealer),whosellstoendcustomersLevelofdistributionChannels*Directchannel(directselling)Asituationwhereaproducerofaproductdeals

3、directlywithcustomers,andmarketingintermediariesarenotinvolvedAdvantagesofdirectchannel1)Thefulldifferencebetweenthemanufacturer’scostandthepricepaidbycustomergoestotheproducer.2)Theproducercaneasilyobtainfirsthandfeedbackontheproduct,allowingquickresponsetocustomercomplaintsand

4、theopportunitytoquicklycorrectanydeficienciesindesign.Disadvantagesofdirectchannel1)Theproducermustemploymoresalespeople.2)Theproducermustprovideallproductpromotion3)TheproducermayhavetoprovidecredittocustomersandincurtheriskofbaddebtOne-levelchannel(distributor/wholesaler)Onema

5、rketingintermediaryisbetweentheproducerandthecustomer*intermediary/merchantsbecomeownerofproductandthenresellthem.)*AgentsmatchesbuyersandsellerswithoutbecomingownersOne-levelchannelofdistributionTwo-levelchannelTwomarketingintermediariesarebetweenproducerandcustomer.Smallbusine

6、ssesthatproduceoneorafewproductscommonlyuseatwo-levelchannelofdistribution.FactorsthatdeterminestheoptimalchannelsofdistributionTheoptimalchannelofdistributiondependsontheproduct’scharacteristics:1)EaseoftransportingProductthatcanbeeasilytransportedismorelikelytoinvolveintermedi

7、aries,Ifnot,morelikelytoselldirectlytocustomers2)Degreeofstandardization*Standardizedproductsaremorelikelytouseintermediaries*Productswithuniquespecificationforeachcustomermustdealdirectlywithcustomers3)InternetordersFirmsthatfillordersovertheInternettendtouseadirectchannelbecau

8、setheirwebsitesservesasasubstituteforaretailsto