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MKT - 6 - Place (Marketing Channel Distribution Channel (Marketing…

- - - - Suppliers -> Company -> Distribution Channel -> Customers
    - - Upstream
        
        Include: Raw mat supplier, components parts, Information, Finance, and expertise
        
        Creating product & service\
      - Downstream
        
        Include: marketing channel, distribution channel,
        
        Look towards the customers
  - - - Sales Force and communications
      - Pricing
  - - - No intermediary levels. Directly selling to cust
    - - 1 -> more intermediates
- - - - Horizontal
        
        Occurs for firms with many same LVL channel
        
        Ex: Car Dealers ( other dealer set low pricng or advertising outside of their assigned territories)
      - Vertical
        
        Occurs between different levels of the same channel
        
        Ex: Burger King - frainnchiesed dealers
      - Happens when disagreements over goals, roles, rewards
  - - - Consist 1 - > more independent producers, wholesalers, retailers
      - LACKED leadership and power,
      - Lead to damaging conflict and poor performance
    - - Provide channel leardership
      - Vertical Marketing System:
        
        Consist of: Producers, wholesalers, retailers acting as 1
      - Types:
        
        Corporate/
        
        Manufacturer-sponsored retailer franchise systems
        
        Service-firm sponsored retailer franchise systems
        
        Contractual
        
        Administered marketing
      - 1 Channel members owns/contract with 2nd channel, or wields so much power over 3rd that they must cooperate
    - - Happens when two or more compnies at one level join together to follow a new marketing opportunity.
      - Firms Able to: Combine Financial, production or marketing resources
      - Eg: Bphone & Mobiphone
- - - - Define the numbers of channel members to use at each level.
      - Few <> Many
    - - Use all partners, or who are willing to carry their products.
    - - Limit the number of intermediaries handling their products. The producer gives only Limited number of dealers
    - - USE > 1 , Fewer than all that willing to carry the product