Chapter 11. Place and Development of Channel Systems. When You Finish This Chapter, You Should: 1. Understand what product classes suggest about Place objectives. 2. Understand why some firms use direct channel systems while others rely on intermediaries and indirect systems. | 11. Place and Development I Text of Channel Systems Perreault-McCarthy Basic Marketing A Global-Managerial Approach 14 e The McGraw-Hill Companies 2002 When You Finish This Chapter You Should 1. Understand what product classes suggest about Place objectives. Chapter Eleven Place and 2. Understand why some firms use direct channel systems while others rely on intermediaries and indirect systems. 3. Understand how and why marketing specialists develop to make channel systems more effective. 4. Understand how to develop cooperative relationships and avoid conflict in channel systems. 5. Know how channel members in vertical marketing systems shift and share functions to meet customer needs. 6. Understand the differences between intensive selective and exclusive distribution. 7. Understand the important new shown in red . Development of Channel Systems Steve Bollic s small firm creates video game software. In the summer of 2001 he learned that Ingram Book Group a book wholesaler had formed an alliance with Valley Media Inc. a distributor of music and entertainment products. Most people in his product-market would have glossed over that news but in his previous job Bollic had gotten a taste of what it might mean tough new competition from game producers whose distribution channels focused on the big retail chains. terms Bollic had been a manager for the Intimate Bookshops a small chain of shops that for decades had been the place to buy books in his college-town market. He moved on to start his video game business even before the Intimate had its final clearance sale and closed its doors for good. After all sales of books through independent bookshops dropped by over 25 percent in the 1990s. Like the Intimate many went out of business because of changes in the channels of distribution for place promotion price produc Perreault-McCarthy Basic 11. Place and Development I Text Marketing A of Channel Systems Global-Managerial Approach 14 e The McGraw-Hill Companies 2002 .
