TOPIC 4

• What are marketing channels defined as?

  Organizations that accomplish distribution goals
• What is the role of the producer in a marketing channel?

  The producer creates the product or service
• Why can't manufacturers or end-users be considered part of the marketing channel?

  Only intermediaries are considered channel members
• Who are channel participants?

  Participants engaging in negotiation functions
• What do producers and manufacturers do?

  They conceptualize and develop products
• What is the role of intermediaries in marketing channels?

  They help producers with distribution tasks
• What do wholesalers do?

  Sell goods for resale to various firms
• What are the types of wholesalers?

  1. Merchant Wholesalers
  2. Agents, brokers, and commission merchants
  3. Manufacturer’s sales branches and outlets
• What distribution tasks do modern wholesalers perform?

  Market coverage, sales contact, holding inventory
• What is the purpose of market coverage by wholesalers?

  To reach many customers across large areas
• Why is making sales contact valuable for wholesalers?

  It reduces the cost of maintaining a sales force
• What does "holding" inventory mean for wholesalers?

  Wholesalers take title and possession of products
• How do wholesalers process orders for producers?

  They help manage small quantity purchases
• Why do wholesalers gather market information?

  To stay close to customers through sales contacts
• What customer support tasks do wholesalers perform?

  Support producers and manufacturers on their behalf
• What additional services do merchant wholesalers provide?

  • Ensuring product availability
  • Providing customer service
  • Extending credit and financial support
  • Assortment convenience
  • Breaking bulk
  • Accommodating customers with advice
• What is the marketing channel as a social system?

  Interaction process between two or more actors
• What is the difference between conflict and competition in marketing channels?

  Conflict is direct and personal; competition is indirect
• What are some causes of channel conflict?

  Misunderstood communication and differing goals
• What are role incongruities in channel conflict?

  Disagreements over expected roles in the channel
• How do resource scarcities lead to channel conflict?

  Disagreements over allocation of valuable resources
• What are perceptual differences in channel conflict?

  Different interpretations of environmental stimuli
• What are expectational differences in channel conflict?

  Predictions about other channel members' behavior
• What are decision domain disagreements in channel conflict?

  Disputes over areas of exclusive decision-making
• What are goal incompatibilities in channel conflict?

  Differences in setting goals among members
• How does communication affect channel conflict?

  Poor communication can lead to misunderstandings
• What must channel managers do regarding conflicts?

  Detect, appraise, and resolve conflicts
• What are the four generalizations regarding channel conflict?

  1. Conflict is inherent in marketing channels
  2. Conflict is a pervasive phenomenon
  3. Conflict can affect channel efficiency
  4. Conflict may have negative or positive effects
• What are the types of power in marketing channels?

  Reward, coercive, legitimate, referent, expert
• What are behavioral problems in channel communication?

  Language differences, inadequate frequency, perceptual differences
• What is the role of distribution in a company's objectives?

  It should align with long-term strategies
• How should firms determine the priority of distribution?

  Based on their specific strategic objectives
• Why is distribution important in the marketing mix?

  It satisfies target market demands effectively
• What are key reasons for prioritizing distribution?

  1. Relevant for satisfying target market demands
  2. Parity among competitors in other variables
  3. Vulnerability due to competitors' neglect
  4. Enhances firm through channel synergy
• What is channel strategy and differential advantage?

  A well-designed channel meets customer demands better
• What is channel positioning?

  Strategic decisions create long-term benefits
• What are strategic alliances in marketing channels?

  Partnerships between manufacturers and distributors
• How should channel members be selected?

  Reflect the company’s marketing and distribution goals
• What should channel managers consider for cooperation?

  Relationship closeness, motivation, and marketing mix
• What are the strategies of marketing channels?

  • Push Strategy: Promote to intermediaries
  • Pull Strategy: Target consumers with advertising