Download Chapter 10 Marketing Channels and Supply Chain

Survey
yes no Was this document useful for you?
   Thank you for your participation!

* Your assessment is very important for improving the work of artificial intelligence, which forms the content of this project

Document related concepts

Marketing channel wikipedia, lookup

Global marketing wikipedia, lookup

Green marketing wikipedia, lookup

Copyright wikipedia, lookup

Transcript
Chapter 10
Marketing Channels
and Supply Chain Management
Supply Chains
 Producing and making products
available to buyers requires building
relationships with “upstream” and
“downstream” partners.
– Upstream: firms that supply the raw
materials, components, parts, and other
elements necessary to create a good.
– Downstream: marketing channel partners
that link the firm to the customer.
Copyright 2007, Prentice Hall, Inc.
10-2
Marketing Channel
or Distribution Channel
 A set of interdependent organizations
involved in the process of making a
product or service available for use or
consumption by the consumer or
business user.
– Wholesalers
– Distributors
– Dealerships
– Retailers
Copyright 2007, Prentice Hall, Inc.
10-3
How Channel Members Add
Value
 The use of intermediaries results from
their greater efficiency in making goods
available to target markets.
 Offers the firm more than it can achieve
on its own through the intermediaries:
– Contacts
– Experience
– Specialization
– Scale of operation
Copyright 2007, Prentice Hall, Inc.
10-4
Key Channel Functions
 Transaction
Completing:
 Transaction
Fulfilling:
– Information
– Promotion
– Contact
– Matching
– Negotiation
– Physical
distribution
– Financing
– Risk taking
Copyright 2007, Prentice Hall, Inc.
10-5
Number of Channel Levels
 Number of intermediary levels indicates
the length of a channel.
– Direct marketing channels
• Have no intermediary levels between the
manufacturer and the customer.
– Indirect marketing channels
• Contains one or more intermediaries.
 All channel institutions are connected
by several types of flows.
Copyright 2007, Prentice Hall, Inc.
10-6
Channel Design Decisions
1.
2.
3.
4.
Analyzing Consumer Needs
Setting Channel Objectives
Identifying Major Alternatives
Evaluating the Major Alternatives
Copyright 2007, Prentice Hall, Inc.
10-7
1. Analyzing Consumer Needs
 Answering key questions helps to
determine customer needs:
– Do consumers want to buy from nearby
locations or are they willing to travel?
– Do they value breadth of assortment or do
they prefer specialization?
– Do consumers want many add-on services?
 Firm must balance needs against costs
and consumer price preferences.
Copyright 2007, Prentice Hall, Inc.
10-8
2. Setting Channel Objectives
 State objectives in terms of targeted
levels of customer service.
 Channel objectives are influenced by:
– Cost
– Nature of the company
– The firm’s products
– Marketing intermediaries
– Competitors
– Environment
Copyright 2007, Prentice Hall, Inc.
10-9
3. Identifying Major
Alternatives
 Types of Intermediaries
– Company sales force
– Manufacturer’s agency
– Industrial distributors
 Number of intermediaries
– Intensive distribution
– Exclusive distribution
– Selective distribution
 Responsibilities of intermediaries
Copyright 2007, Prentice Hall, Inc.
10-10
4. Evaluating the Major
Alternatives
 Economic Criteria:
– A company compares the likely sales,
costs, and profitability of different channel
alternatives.
 Control Issues:
– How and to whom should control be
given?
 Adaptive Criteria:
– Consider long-term commitment vs.
flexibility.
Copyright 2007, Prentice Hall, Inc.
10-11