Download Marketing Channels

Marketing Channels
Fall 2006
You gotta love trees…
Value Delivery Network
 Company,
suppliers, distributors and
customers who partner to improve
system performance
 A demand chain orientation: start
with the needs of customers
Marketing Channel
 Interdependent
organizations
involved in the process of making a
product available for use
Think Efficiency and Effectiveness
Add a Distributor
And What Needs to be Done?
 Information
– Research
– Promotion
 Matching
and Assorting
 Physical Distribution and Storage
 Financing
 Risk Taking
It is Not Always Easy: Channel
Conflict
 Vertical
Conflict
 Horizontal Conflict
Vertical Marketing Systems
 Corporate
Channel
– Vertical Integration: wholly owned and
tapered
 Contractual:
Coordinated
 Administered
Channel Considerations
 Types
of Intermediaries
– Company Sales Force, Manufacturer’s
Agents, and Industrial Distributors
 Number
of Intermediaries
– Intensive distribution: Snickers
– Exclusive distribution: Rolls
– Selective distribution: Acura
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