Business to Business Marketing 11 1

0:02 hello everyone welcome to the marketing channel course today we will take the time to review what we have learned so far take the time to test yourself how much you have observed what you have learned so far after studying so far what do you think marketing channels are marketing channel is a set of independent organizations involved in the process of making a product or service available for you sorry consumption

0:50 this definition bears some exploitation it first highlights that a marketing channel is set of independent organizations that is it cannot be limited to one form doing its best in the market whatever the firm's position in the channel manufacturer food seller or retailers many entities generally are involved in the business and each channel member depends on the others to do their jobs

1:37 what are their jobs the definition makes clear that running marketing channel is a process not an event distribution frequently takes time to accomplish and even when a cell finally occurs the relationship with the end user is not over consider the postal currency service at a car dealership or think about a hospital purchasing a piece of medical equipment and its perpetual demands for protocols service finally the definition suggests that

2:23 the purpose of this process is to make a product or service available for use or consumptions that is it is to satisfy and the user in the market whether they are consumers or finer business buyers whose goal is the use or consumption of the product or service being sold manufacture the cells through distributors to retailers which serve finer consumers

3:11 may be tempted to think that it has generated sales and developed happy customers when is the sales force successfully place this product in the dress distributors will house this the definition we use in this course argues otherwise all channel members whatever their laws must focus their attention on thee and the user business managers want to make their products and services available to customers through trainers but they also want to use marketing channels to enhance the

3:57 forms sustainable comparative advantage and financial financial performance next we have dealt with the value of the trainer as important why do marketing channels exist that is why don't manufacturers just sell their products and services directly to all end users what were the four ways to create value through distribution channels now let's talk about value of channels

4:43 to understand optimal channel structure and strategies it is critical to understand what benefits the intermediaries in the trainers the value of trainers cover search facilitations sorting lotionization of transactions fear contacts this part is important so let's take a closer look first we'll look at search facilitation the search process is characterized by uncertainty for both end users and

5:29 sellers and the users are uncertain about where to find the products or services they want sellers do not know exactly how to reach target and users if intermediaries did not exist sellers without an already established its established brand name it would be unable to generate many cells and the users would not know whether to believe the claims made by manufacturers about the nature and quality of their products

6:14 nor could manufacturers be certain that they were reaching the right kinds of ending users through their promotional efforts intermediaries does facilitate searching on both ends of the trainers let's move on to sorting function independent intermediaries in a marketing channel perform the valuable function of certain goods and thus reserving the natural

6:59 discrepancy between the assertment of goods and services probably are produced by manufacturers and the assertment demand by the end users this discrepancy arises because manufacturers typically produce a large quantity of a limited variety of goods whereas consumers demand only a limited quantity but of a wide variety of goods the sorting functions performed by intermediaries include the following

7:47 sorting out accumulation allocation or sorting in brief sorting out involves breaking down heterogeneous supply into separate stocks that are relatively homogeneous the example of this is a citrus packing house sorting house sorts oranges by size and grade and accumulation accumulation means that

8:34 the intermediary combines similar stocks from multiple sources to provide a broader homogeneous supply the example of this case is the full sellers accumulate varied goods for retailers and retailers accumulate goods for their consumers in our location allocation is breaking homogeneous supplying down into smaller and smaller lots the example of this case is uh goods

9:23 received in car loans might be sourced in case lots and the buyer of the case loss intern might sell individual units finally assaulting assaulting entails building up an assortment of products for resale in association such that for sellers builds assortments for retailers and retailers bills assortments for their consumers in short intermediaries create utility for end users in particular they provide physician place and time

10:10 utilities such that they ensure a product is available in the assertments and at the places that are most valuable to target and the users at the right time each purchase transaction involves ordering determining the valuation of and paying for goods and services the buyer and seller must agree on the amount mode and timing of payment these cost of distribution can be minimized if the transactions are routingized otherwise every transaction would be

10:58 subject to bargaining with an account accompanying laws of efficiency in short recognization leads to efficiencies in the execution of channel activities the fewer contacts without channel intermediaries every producer would have to interact with every potential buyer to create all possible market exchanges thus it is the judicial use of

11:46 intermediaries that reduces the number of contacts necessary to cover a market participation of intermediaries reduces transaction costs by reducing transactions on distribution channels compared to direct transactions between producers and consumers do you remember though this picture picture a demonstrates there are three manufacturers

12:34 and three customers so there are nine transactions one two three four five six seven eight nine and otherwise picture b demonstrates number of contexts with distribution distributor it is distributor it is a intermediary there are three manufacturers and three customers and six transactions one

13:20 two three four five six it is reducing the rumble over transactions distribution trainer agencies or institutions can be eliminated or substituted but the functions that they perform cannot be eliminated what does the word mean accordingly we know one more important truth about channel design and management

14:06 it is possible to eliminate our substitute for the members of china the example of this case is in the airline industry the agencies are on the verge of elimination since some airlines start eliminating fees they award to agency if all airlines do not use agency the agency could be eliminated in the trainers of airline industry but that 4 functions they perform when trainer members leave the channel

14:52 their functions shaped either forth or backward to be assumed by other channel members the example of this case is in the airline case the function of a promotion gathering customers selling ticket cannot be eliminated the function should be performed by other channel members in this case airline take the promotion functions and selling function through its own website at the same time they move the function to other channel members they are more and more rely

15:38 on orbit.com and trevor website such as expedia.com travelocity.com to carry out promotion function selling tickets does the function of the lengthy cats shift to backward or shaped then let's take a quiz together number one which of the following is right for the definition of a marketing channel one in company systems for

16:24 delivering goods or services to market two a collection of the interdependent organizations that participate in the process by which customers use or consumer consume a product or service three the trainer through which a good or service is delivered from the producer to the end consumer for all companies outside the organization performing marketing functions what's the answer

17:13 the answer is number two a collection of interdependent organizations that participate in the process by which customers use or consume a product or service is it easy and next quiz is which of the following is true 1 distribution channel function cannot be removed distribution channel functions cannot be replaces distribution channel organization

18:02 cannot be removed distribution trainer organization is not different replaces what's the answer let's think about it the answer is number one distribution channel function cannot be removed distribution channel function

18:49 can be replaced replaced or substitute and three distribution channel organization can be removed for distribution channel organization is leave listen okay let's continue in the next video

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