MRKT 354 Lecture 9: marketing management 2 chapter 9

• School: McGill University
• Department: Marketing
• Course: MRKT 354
• Professor: George Dracopoulos

Document Summary

Retailers and wholesalers have a function that they serve. If you don"t use them, you will have to pay the price. Operating in many years because it makes sense. Primary objective of marketing channel is to get it to the consumers effectively and in a nice manner. Stage of product life cycle during early stages, consumers need to be informed more than anything as. Direct channels- higher margins, but the business absorbs the cost of channel management and all marketing costs. Indirect- lower margins, but lower channel management and marketing cost. Quality retention direct= control of contact points indirect forces the business to depend on intermediaries. Direct channel systems best option for sales communication and customer interaction but the costs are high and increasing even when a firm uses a mixed approach they usually maintain their key profitable customers under a direct system. How does a channel system enhance customer value? increase customer benefits lower customer cost both.