MKTG101 Lecture Notes - Lecture 10: Franchising, Tupperware, Direct Marketing
15 Mar 2020
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Document Summary
Channels of distribution are distinctive and important because they; Are relatively enduring and inflexible (longer than product life cycles) Also involve the customer as an active participant. Are a major entry barrier" and determinant of profit. Are a key driver of marketplace changes (linked to technological change) Are a potential source of a sustainable competitive advantage". Marketing intermediaries are individuals or organisations that act in the distribution chain between the producer and the end user (e. g. industrial buyers, wholesalers, agents and brokers and retailers) The distribution channel involves a group of individuals and organisations directing products from producers to end users. Effective intermediaries in marketing channels achieve the following: Time utility: making products available at the time the consumer wants to purchase them. Place utility: making products available in the locations that the consumer wants them. Form utility: customising products to the consumer"s particular needs. Possession utility: facilitating purchasing, payment and ownership.
