Marketing 5.01-5.02

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The goal of channels of distribution is to move products from producers to

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final consumers

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Channels of distribution benefit consumers by

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making a variety of products available to them.

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Channels of distribution benefit businesses by

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getting their products to consumers more efficiently.

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Providing marketing information is an important channel activity. Businesses rely on marketing information to determine their target markets’ needs and wants.

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their target markets’ needs and wants.

Front

A company that sells products to consumers are: wholesalers, retailers, producers

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retailers

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Retailers perform an important channel activity by negotiating with consumers on issues such as delivery.

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delivery.

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A wholesaler breaks down a large shipment of a product and sells portions of it to several retailers. The wholesaler is reducing a discrepancy of

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quantity

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A retailer buys a variety of toys from a number of different producers and makes them all available for sale in the same place. The retailer is reducing a discrepancy of

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assortment

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Channels of distribution allow channel members to share

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risk.

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Channel members add value to a product by

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performing certain channel activities expertly.