· Understand the importance of marketing channels and supply chain management.
Marketing Channel add value – In simple agricultural economics, the best supply chain likely does follow a direct route from manufacture to the consumer.
Each participant in the channel adds value
Marketing Channel Management Affects Other Aspects of Marketing.
A distribution Center – is a facility for the receipt, storage, and distribution of goods to company stores or customers.
· Understand the difference between direct and indirect marketing channels.
Direct Marketing Channel – there are no intermediaries between the buyer and the seller.
Direct Channel one intermediary – Retailer
Direct Channel Two intermediary – Retailer & Wholesaler
Indirect Marketing Channel – one or more intermediaries work with the manufacture to provide goods and services.
· Describe how market channels are managed.
Managing marketing channels and supply chain –
Vertical Channel Conflict. – When supply chain members buy one another or are not in agreement about their goal and rewards.
Horizontal Channel Conflict – also can occur when there isn't a disagreement