Intermediary Purchasing from the Producer of the Product

Sell Steps: Sell steps include the activities Intermediary customers take in selling and delivering the product to their customers. These activities include their own customer recruitment and product delivery.

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
Customer knows the channel brand but not the producer brand – Segment knows channel brand primarily for:
Function, such as product choice and physical ambiance

No. SIC Year Note
1 5092 2000 Partnerships with existing pet supply chains may prove critical. is 20% owned by Petco. The company figures it has a big cost advantage over Net upstarts. Petopia can have a new distribution center up in a couple of weeks as opposed to a couple of months, at a cost of $1 million vs. $7-9 million.
2 7336 2003 nVidia and ATI both make parts for PCs as well as the graphics chips for a game console: ATI for Nintendo and nVidia for Microsoft's Xbox. Both have chips made in Taiwan by the same factory, Taiwan Semiconductor Manufacturing. And both face the prospect of razor-thin profits, largely on account of the other's existence and consequent price competition, something missing in the rest of the PC world of monopolies.

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