Ch12 Global Marketing Channels and Physical Distribution University of Washington
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GLOBAL MARKETING CHANNELS AND PHYSICAL DISTRIBUTION
SUMMARY
A channel of distribution is the network of agencies and institutions that links producers
with users. Physical distribution is the movement of goods through channels. Business
–to-consumer marketing uses consumer channels; business-to-business marketing
employs industrial channels to deliver products to manufacturers or other types of
organizations. Peer-to-peer marketing via the Internet is another channel. Distributors
and agents are key intermediaries in both channel types. Channel decisions are difficult
to manage globally because of the variation in channel structures from country to
country. Marketing channels can create place utility, time utility, form utility, and
information utility for buyers. The characteristics of customers, products, middlemen,
and environment all affect channel design and strategy.
Consumer channels may be relatively direct, utilizing direct mail or door-to-door selling,
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