CM 1 Chart Your Channels (Channel Management)

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

• intermediaries.

• industrial distributors.

• final consumers.

• middlemen.

Channels of distribution benefit consumers by

• making a variety of products available to them.

• lowering the prices of all consumer products.

• raising the quality of all consumer products.

• increasing profits for businesses.

Channels of distribution benefit businesses by

• lowering the prices of all industrial goods.

• getting their products to consumers more efficiently.

• raising their profits each year.

• allowing them to avoid all channel tasks.

Providing marketing information is an important channel activity. Businesses rely

on marketing information to determine

• how intermediaries are performing.

• how much to charge for their products.

• what to name their products.

• their target markets’ needs and wants.

The costs of promoting products are often

• avoidable in certain channels.

• very inexpensive, especially for new products.

• paid for entirely by one channel member.

• shared by channel members.

Retailers perform an important channel activity by negotiating with consumers

on issues

such as

• risk-taking.

• delivery.

• promotion.

• manufacturing.

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

• quantity.

• assortment.

• installation.

• promotion.

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

• quantity.

• assortment.

• installation.

• promotion.

Channels of distribution allow channel members to share

• profits.

• equipment.

• risk.

• employees.

Channel members add value to a product by

• performing certain channel activities expertly.

• making the product more costly.

• making the product difficult for consumers to find.

• pursuing individual goals.