Core Concepts of Marketing

258 CHAPTER 10 CHANNELCONCEPTS:DISTRIBUTINGTHEPRODUCT

generatebillionsinsales.Despitethesedifference:;,allareinbusinesstosatisfytheneeds

ofmarkets. Inordertodothis,thesefIrmsmustbeassuredthattheirproductsaredistrib-

utedtotheirintendedmarkets.Most producingandmanufacturingfIrmsarenotina favor-

ablepositiontoperformallthetasksthatwouldbe necessarytodistributetheirproducts

directlyto theirfInalusermarkets. Acomputermanufacturermayknoweverythingabout

designingthefInestpersonalcomputer,butknowabsolutelynothingaboutcakingsurethe

customer hasaccesstotheproduct.

Inmanyinstances,it is theexpertiseandavailabilityofotherchannelinstitutionsthat

makeit possiblefor a producer/manufacturertoevenparticipateina particularmarket.Imag-

inethe leveragethata companylikeFrito-Layhaswith varioussupermarketchains.Sup-

poseyoudevelopeda super-tastingnewsnacKchip.Whatareyourchancesof taking

shelf-facingsawayfromFlito-Lay?ZefO.Thankfully,a specialtycatalogretaileris ab leto

includeyourproductfora prescribecifee.Likewise,otherchcmnelmemberscanbeuseful

totheproducerin designingtheproduct,packagingit,pricingit,promotingit,anddistributing

it throughthemosteffective(;harmels.Itis rarethata manufacturerhas theexpertise found

withotherchannelinstit;Jtion:;.

Retailing

Retailinginvolve~allactivitiesreql:iredto marketconsumergoodsandservicestoultimate

consu mers whoa"e motivatedtobuyin ordertosatisfyindividual0;familyneedsincon-

trast to business,in stitutional,orindustrialuse. Thus,whenanindividualbuysa computer

at Circuit City,groceriesatSafeway,ora purseatEbags.com,a retailsalehasbeenmade.

Wetypicallythinkofa storewhenwethinkofa retailsale.However, retai l salesare

madeinwaysotherth anthroughstores.Forexample,retailsalesaremadebydoor-to-door

PerformingArtists(BusinessandTourManagers) i

t t

IPersonalIIPersonalI

Manager Manager

t

IBooking II Booking I IBooking I

Agency Agency Agency

t

I Arts II Arts II Arts

Council Council Council I

I

Mass

Media I

ISPO;~I[SPOi'"'IISP'i'"' lisp,;"I ISOTII5ol'''I

PerformingArtsAudiences I

FIGURE10.4 Themarketingchannelsfortheperformingarts

Source:JohnR.Nevin,"An EmpiricalAnalysisofivlarketingChannelsfort hegerformingArts;'inMichaelP

Mokwa,WilliamM. Dawson,andE.ArthurPrieve(eds.).MarketingtheArts,NewYork:PraegerPublishers,

1980,p.204.