In: Accounting
Q1. Explain How Routinization is among the Marketing Channel benefits to Upstream channel members. Your answer should be at least 150 words; use two academic resources and one of them should be your assigned textbook and you must use examples.
There are several benefits of Market Channel and Routinization is one of them. Routinization is the process in which the desired products are found by the consumers at the places they expect, example catalogues or stores. This enables comparison of products, prices are printed, different methods of payment are vailable.
Routinization benefits both the consumers as well as producers. This process helps the producer in detreminig what to produce, when to produce and how many units to produce. Also, Routinization helps in completing the channel transactions at any given point of time. This gives satisfaction to the channel members and hence results in upstreaming channel members.
A major benefit of Routinization is reduction in cost of distribution, or lese every transaction would be subject to bargaining and thus loss in efficiency. Routinization results in standardization of goods or services whose peerformance can be easily examined and compared. Products can be produced with greater value under this process. Hence routinization results in enhganced efiiciencies in the execution and performance of channel activities.