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How do Channel What Problems do Firms Interact and Companies Face in Organize to do the Designing and Work of the Managing Their Channel? Channels?
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Distribution Channel
Manufacturer
Retailer
Distributor
Consumers 4
Channel 2
M
Indirect Channel
Channel 3
M
Channel 4
M W J R C
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Each member is assigned tasks it can do best. All members cooperate to attain overall channel goals and satisfy the target market.
Manufacturer
Vertical
Distributor
Retailer
Consumers
Horizontal
Retailer
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Consumer
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Corporate
Contractual
Administered
Major Trend is Toward Disintermediation Which Means Producers are Bypassing Intermediaries and Going Directly to Final Buyers That New Types of Channel Intermediaries are Emerging to Displace Traditional Ones.
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Selective Distribution
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customer service and satisfaction have become the cornerstone of marketing strategy. logistics is a major cost element for most companies.. Improvements in information technology has created opportunities for major gains in distribution efficiency.
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Costs
Order Processing
Received Processed Shipped
Transportation
Rail, Truck, Water, Pipeline, Air, Intermodal
Logistics
Warehousing
Storage Distribution Automated
Functions
When to order How much to order Just-in-time
Inventory
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Transportation Modes
Rail
Nations largest carrier, cost-effective for shipping bulk products, piggyback Flexible in routing & time schedules, efficient for short-hauls of high value goods Low cost for shipping bulky, low-value, non perishable goods, slowest form Ship petroleum, natural gas, and chemicals from sources to markets High cost, ideal when speed is needed or distance markets have to be reached
Truck
Water
Pipeline
Air
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