Answered: How does merchandise flow through a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

How does merchandise flow through a typical marketing
channel?

Expert Solution

Step 1

The individuals, organizations, and practices required to move possession of products from the level of manufacturing to the level of sale make up a marketing channel.

Step 2

In a traditional marketing channel, products pass through one or two intermediaries before reaching the end customers. The manufacturer will either send products to a distribution center then to retail outlets, or the supplier will deliver straight to retailers.

Manufacturing unit distributors stores Customer

Few distributors still use the direct-to-store marketing strategy. In a typical marketing channel, suppliers are an alternative factor.

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