Describe the channel structures for consumer and business products and discuss alternative channel arrangements.

Describe the channel structures for consumer and business products and discuss alternative channel arrangements. Marketing channels for consumer and business products vary in degree of complexity. The simplest consumer-product channel involves direct selling from producers to consumers. Businesses may sell directly to business or government buyers. Marketing channels grow more complex as intermediaries become involved. Consumer-product channel intermediaries include agents, brokers, wholesalers, and retailers. Business-product channel intermediaries include agents, brokers, and industrial distributors. Marketers often use alternative channel arrangements to move their products to the consumer. With dual distribution or multiple distribution, they choose two or more different channels to distribute the same product. Nontraditional channels help differentiate a firm’s product from the competitor’s or provide a manufacturer with another avenue for sales. Finally, strategic channel alliances are arrangements that use another manufacturer’s already established channel. Questions 3.1 Describe the most likely marketing channel structure for each of these consumer products: candy bars, Tupperware products, nonfiction books, new automobiles, farmers’ market produce, and stereo equipment. Now, construct alternative channels for these same products. 3.2 You have been hired to design an alternative marketing channel for a firm specializing in the manufacturing and marketing of novelties for college student organizations. In a memo to the president of the firm, describe how the channel operates. 3.3 Building on question 1.1 determine a new channel structure for . Write a proposal to present to your key managers. Question 1.1 1.1 Your family runs a specialty ice cream parlor called Scoops. It manufactures its own ice cream in small batches and sells it only in pint-sized containers. After someone not affiliated with the company sent six pints of its ice cream to a popular talk-show host, she proclaimed on her national TV show that it was the best ice cream she had ever eaten. Immediately after the broadcast, orders came flooding in, overwhelming your small-batch production schedule and your limited distribution system. The company’s shipping manager thinks she can handle it, but you disagree. List the reasons why you need to restructure your channel of distribution.


 

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