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Flows in Marketing Channels

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Luz Camarena

on 20 February 2013

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Transcript of Flows in Marketing Channels

Product Flow
Negotiation Flow
Ownership Flow
Information Flow
Promotion Flow Product Flow Negotiation Flow Ownership Flow Information Flow Refers to the flow of persuasive communication in the form of advertising, personal selling, sales promotion and publicity Refers to the actual physical movement of the product from the manufacture, through all if the parties who take physical possession of the product, from its point of production to final consumer Represents the interplay of the buying and selling functions associated with the transfer of title. shows the movement of the title to the product as it is passed along from the manufacturer to final consumers. Promotion flow Flows in Marketing Channels All parties participate in the exchange of information, and the flow can be either up or down. Distribution Through Intermediaries The term DESINTERMEDIATION, a francy way of saying "eliminate the middleman.

Economic considerations are also very iportant in determining whether intermediaries will appear in marketing channels, two of the most important of which are specialization/ division of labor and conductual efficiency. Specialization and Division of Labor The only difference in the application of the specialization and division of labor concept, as applied to production versus distribution in this figure, is that the production tasks have been allocated INTRAORGANIZATIONALLY
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