Download Marketing Channels

MARKETING CHANNELS
Presented by
Diego Ruiz
Jeffery Botwinick
Karina Ramos
Yanmi Wang
Agenda

Marketing Channel

Levels of Channel

Channel Design

Types of Marketing System

Logistics
What is a Marketing Channel?
•
•
•
A set of interdependent
organizations
Making products available to
consumers or businesses.
Creating greater efficiency on
making goods available to
target markets.
Producer
Channel
Customer
The Importance of Marketing Channel
Number of contacts without a distributor
Number of contacts with a distributor

Each channel member adds value

Connect producers with customers

Complete transactions
Distributor
Marketing Channel Levels
Marketing Channels
DirectConsumer
Marketing
Channel


no intermediary levels
Business Marketing Channels
Indirect
Marketing Channel

one or more
intermediary levels
company sells directly
to consumers
Channel 1
Channel 2
Channel 3
Channel 4
Channel 5
Channel 6
Types of Marketing System
Conventional distribution channel



One or more
independent member
Seeking to maximize
its own profits
no much control over
other members
Vertical marketing system



All members acting as
a unified system
One channel member
owns the others
Dominated by the
producer the
wholesaler, or the
retailer
Types of Marketing System
Horizontal Marketing Systems


Two or more
companies at one level
Accomplish more than
any one company
could alone
Multi-channel distribution channel


A single firm sets up
two or more marketing
channels
To reach one or more
customer segments
Marketing channels
Taylor
Farms
PRODUCER
WalMart
RETAILER
Buyers
CONSUMER
Sysco
BUSINESS DISTRIBUTOR
Applebee's
BUSINESS CUSTOMER
Marketing Channel Design
Analyzing Customer Needs
Nearby locations
 Buy in person, by phone or online
 Range of assortments or specialization
 Add-on services

Setting Channel Objectives
 Segments
to serve
 Nature of the company/products
 Competitors
 Environment
Marketing Channel Design
Identifying Major Alternatives
Types of intermediaries
 Number of intermediaries

Intensive distribution
 Exclusive distribution
 Selective distribution


Responsibilities of Channel Members
Evaluating Major Alternatives
Economic criteria
 Control issues
 Adaptability criteria

Channel Considerations

Does the channel fit the target customers?

Is the channel going allow for profit?

How many intermediaries will be involved?

How will each add value?
Marketing Logistics

Warehousing
 Taylor
Farm has storage warehouses, and distribution
centers.
 Produce has a limited shelf life.

Distributions centers need to fill orders efficiently to
ensure fresh produce.
Taylor Farms operates nine Rapid deployment Centers (RDCs)
through the country.
Inventory Management

Balance inventory

Affect customer satisfaction

Product availability

Ability to track product
Transportation



Choice of carriers affect product pricing
Affect the condition of goods
Delivery performance
Logistics Information Management


Companies manage their supply through
information.
Channels share information
 Customer
transactions
 Billing
 Shipment
& inventory
 Customer data
Motivating Intermediaries






Opportunity for profit
Price, terms, conditions
Support and training
Products line future
Attractive brand
Co-marketing
(McCarthy, 2013)
Reflection




Marketing channels connect producers to customers.
There are two major types of channel Direct and
indirect
Channels are opportunities for value add in a target
market
The complexities that make a product available for
consumers.
References



Kolter, P. & Armstrong, G. (2014) Principles of Marketing.
Upper Saddle NJ:Pearson
Mckarthy, Brian K. (2013 February 24). Marketing Channels of
Distribution. [Video file]. Retrieved from
https://www.youtube.com/watch?v=aOT4Wnuv3E8
Hegedus World. (2012). Taylor Farms[Video file]. Vemo.
http://vimeo.com/43966985