Intermediary Purchasing from the Producer of the Product

Intermediary Customers Purchasing from the Producer of the Product. Each of these costs represent steps an Intermediary or channel customer must take in connection with the product.

Obtain Steps: The Obtain steps include all activities preceding the selling of the product. These activities include the costs of identifying potential suppliers and stocking the product.

3. Intellectual: Segment customers on the basis of their current knowledge and understanding of the company and its products

A. Knowledge of company and company product

1. Familiarity with company and brand, crossing all products

   1. Customer knows company, not brand Examples>>

   2. Customer knows brand, not company Examples>>

   3. Customer knows the channel brand but not the producer brand Examples>>

   4. Customer knows both the channel and producer brands Examples>>

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