Download Marketing Channel

MANAGING
MARKETING
CHANNELS AND
WHOLESALING
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
You can eliminate the middleman but you
can not eliminate its functions
• Defining Marketing Channels of
Distribution
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Marketing intermediaries
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
NATURE AND IMPORTANCE
OF MARKETING CHANNELS
• Value Created by Intermediaries
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
How intermediaries minimize transactions
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Marketing channel functions performed by
intermediaries
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
CHANNEL STRUCTURE
AND ORGANIZATION
• Marketing Channels for Consumer
Goods and Services
 Direct channel
 Indirect channels
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Common marketing channels for consumer marketing
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Common marketing channels for business marketing
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Representative electronic marketing channels
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
CHANNEL STRUCTURE
AND ORGANIZATION
• Direct Marketing Channels
• Multiple Channels and Strategic
Alliances
 Dual distribution
 Strategic channel alliances
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Nestlé and General Mills
Food industry’s first strategic alliance
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
CHANNEL STRUCTURE
AND ORGANIZATION
• A Closer Look at Channel Intermediaries
• Merchant Wholesalers
• Agents and Brokers
 Manufacturer’s agents
 Selling agents
 Brokers
• Manufacturer’s Branches and Offices
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
CHANNEL STRUCTURE
AND ORGANIZATION
• Vertical Marketing Systems and
Channel Partnerships
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Types of vertical marketing systems
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
CHANNEL STRUCTURE
AND ORGANIZATION
• Vertical Marketing Systems and Channel
Partnerships
• Corporate Systems
• Contractual Systems
 Franchising
• Administered Systems
• Channel Partnerships
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
CHANNEL CHOICE
AND MANAGEMENT
• Factors Affecting Channel Choice and
Management
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Environmental Factors
Consumer Factors
Product Factors
Company Factors
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
CHANNEL CHOICE
AND MANAGEMENT
• Channel Design Considerations
• Target Market Coverage
 Intensive distribution
 Exclusive distribution
 Selective distribution
• Satisfying Buyer Requirements
• Profitability
• Global Dimensions of Marketing
Channels
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
CHANNEL CHOICE
AND MANAGEMENT
• Channel Relationships: Conflict,
Cooperation, and Law
• Conflict in Marketing Channels
 Disintermediation
• Cooperation in Marketing Channels
 Channel captain
• Legal Considerations
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Channel strategies and practices affected by legal
restrictions
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin