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tbook. 2. In the Marketing Insight article entitled, MCommerce Opens up New Opportunities For Marketers, the author, Douglas Lamont, talks about a new field called mmerce. Comment upon the stated advantages and disadvantages of mmerce or locationbased services for marketers. Specifically, knowing what you now know about consumer buying decisionmaking, will emerce have to change consumerbuying habits to be successful? Alternatively, will this field have to wait until today’s younger consumers grow older to bee another channel alternative for marketers? ThinkPairShare1. Read the Marketing Insight entitled, Burst of the DotCom Bubble, the author suggests that the “dots” failed for a variety of reasons. Comment on how this channel of distribution (the Internet) has been affected by these well publicized failures. Specifically, are consumers more adapt to shop online or “once burned,” are consumers turning to the more traditional channels of distribution for their shopping? Students should include in their answers data from the most recent holiday season to analyze consumerbuying trends. 2. Channel members add value to the consumer’s purchase of certain products and services. Table details key channel member functions. Yet some firms have abandoned channel partners and tried to reach the consumer on a onetoone basis. Selecting a product or firm that (a) is maintaining it channel members, and (b) a firm that has decided to sell directly to the consumer thus bypassing channel intermediaries. Comment on these two systems in terms of the information contained in the chapter. MARKETING TODAY—CLASS DISCUSSION TOPICSIn late 2003–early 2004, Levi Strauss and Company introduced a line of jeans specifically for the massmerchant stores, called Levi Strauss Signature?. In addition, Levi Strauss and Company introduced a new line of jeans called Type 1? to be sold in mid and hightier department and chain stores. Considering the advantages and disadvantages of channel partnerships, the importance of the marketing channel system, discuss the implications that this decision is to have on Levi’s more traditional (highend department stores) channel partners. Specifically, is Levi’s decision to move from selective distribution to an intensive distribution network, likely to produce increased channel conflict for Levi? If the answer is yes, what can Levi Strauss do to minimize such conflict? Speculate on why you think that Levi Strauss made such a decision? ENDOFCHAPTER SUPPORT MARKETING DEBATE—Does It Matter Where You Are Sold? Some marketers feel that the image of the particular channel in which they sell their products does not matter—all that matters is that the right customers shop there and the product is displayed in the right way. Others maintain that channel images—such as a retail store—can be critical and must be consistent with the image of the product. Take a position: Channel images do not really affect the brand images of the products they sell that much versus channel images must be consistent with the brand image. Pro: Buyers buy products or use services to meet a particular need or want. In the marketingdecision making process, a consumer has a preformed image of the product or service based upon the pany’s reputation or marketing messages. Therefore, where the consumer finally purchases the product is immaterial to the consumer, as long as, the product performs to expectations and that the process of purchasing the product is as simplified as possible. Strongly advertised products, or those products, with strong brand names will have consumers seeking out their products regardless of which channel of distribution the pany uses. Some marketers benefit from extensive distribution channels, as their products are impulse items, last minute decision items, or cater to consumer habits. For marketers of these items, it is important for them to be available when the consumers’ desires strike. Con: The consumer buying process, the consumer “value proposition,” changes and reflects shifting priorities based on the individual needs and wants of the consumer at the time of purchase. For key products or services, consumers require, and even demand, different levels of service, attention, or “exclusivity” in the purchase. These consumers’ needs can and are met by different channels of distribution and are influenced by what channel or channels of distribution the producer uses。Chapter 15: Designing and Managing Value Networks and ChannelsDESIGNING AND MANAGING VALUE NETWORKS AND CHANNELS15C H A P T E R LEARNING OBJECTIVESAfter reading this chapter, students should:q Know what is a marketing channel system and a value networkq Know what work marketing channels performq Know how channels should be designedq Know what decisions panies face in managing their channelsq Know how panies should integrate channels and manage channel conflictq Know what is the future for emerceCHAPTER SUMMARY Most producers do not sell their goods directly to final users. Between producers and final users stands one or more marketing channels, a host of marketing intermediaries performing a variety of functions. Marketingchannel decisions are among the most critical decisions facing management. The pany’s chosen channel(s) profoundly affect all other marketing decisions. Companies use intermediaries when they lack the financial resources to carry out direct marketing, when direct marketing is not feasible, and when they can earn more by doing so. The most important functions performed by intermediaries are information, promotion, negotiation, ordering, financing, risk taking, physical possession, payment, and title. Manufacturers have many alternatives for reaching a market. They can sell direct or use one, two, or threelevel channels. Deciding which type(s) of channel to use calls for analyzing custom