How does merchandise flow through a typical marketingchannel?

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter14: Monopolistic Competition And Product Differentiation
Section: Chapter Questions
Problem 19P: How does advertising intend to shift demand? How does it intend to change the elasticity of demand?
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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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