Place (Distribution) Strategy:

Chapter 8
Study Questions:

1. What is a marketing channel?

System of marketing institutions that enhances the physical flow of goods and services, along with ownership title, from producer to consumer or business user. 2. What is the difference between vertical and horizontal conflicts?

Horizontal-Results from disagreements among channel members at the same level, such as two competing discount stores.

Vertical-Occurs among members at different levels of the channel.
Example: Cable companies have recently reached an agreement with the electronics industry so that manufacturers can produce
TVs and other electronic devices that will work, regardless of the cable provider. 3. What are the causes of horizontal and vertical channel conflict?

Horizontal conflicts are typically caused by price wars
Vertical conflicts are caused by disagreements over contracts and by certain channels trying to undercut other channel partners 4. What is a supply chain?

It is a chain of companies that take part In putting a product on the market to include manufacturers of raw goods, shipping companies, marketers, & distributers 5. Describe each of the elements of the six components of physical distribution a) Customer service,
Providing a service or product for a consumer that the consumer will find satisfaction in, This includes every contact the business has with the consumer (ordering, complaints, technical support, etc) The company has to find a balance between good customer service and profit margins b) Transportation,
The company has to find the most efficient method to transport their goods, and balance losses due to transportation errors against speed of delivery. c) Inventory control,
The company has to manage inventory at distributors locations, such as stop