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11 Channels

The document discusses marketing channels and intermediaries. It covers topics like defining marketing channels, the functions performed by intermediaries, channel structure and various types of channels for consumer and business marketing. It also discusses factors affecting channel choice, design considerations, and legal issues related to channel relationships.

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Rezel Funtilar
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48 views

11 Channels

The document discusses marketing channels and intermediaries. It covers topics like defining marketing channels, the functions performed by intermediaries, channel structure and various types of channels for consumer and business marketing. It also discusses factors affecting channel choice, design considerations, and legal issues related to channel relationships.

Uploaded by

Rezel Funtilar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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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
• 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

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