To the extent that the manufacturer does them
– Its costs go up
When some of them are shifted to intermediaries
– Manufacturer’s costs are lower, but intermediaries will add their charges
In moving goods from producers to consumers,
channels overcome gaps in:
– time – place – possession
Carlson©
Marketing Channels
Channels exist when they are more efficient than
Distribution/Place (Marketing Channels)
Marketing Management (Marketing 360) Professor Kurt Carlson
Carlson©
Agenda
The function of channels Channel design
If intermediaries are more efficient than manufacturer,
prices should be lower than under direct distribution
– All else equal, consumers will purchase from the system giving the lowest price, which explains why efficiency is necessary for channels to exist