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Marketing Channels
Chapter 1
Marketing Channels Structure and Functions
Marketing Channels Definition
Marketing Channels are the routes or ways to market product and services thatconsumers and business buyers purchase.
Marketing channels can also be set ofinterdependent organizations involved in the process of making a product or service available for the use of consumption.
Why do marketing channels exists and change
Demand-Side factors Uncertainty of customer Uncertainty of producer
Adjustment of Assortment Discrepancy Sorting Accumulation Allocation Assorting
Why do marketing channels exists and change
Supply-Side Factors Routinization Of Transaction CRP (Continues Replenish System) Reduction in number of Contacts
Cost effectiveness Easy Handling Value Addition
Reduction in Contacts
What is the Work of Marketing Channels
Flow of Marketing Channels Producers
Distributors
Whole Seller
Retailer
Consumer
Marketing Channels Flow
A Framework For Channel Analysis
Channels Segmentation Structure Decisions Splitting the Work Load Degree of Commitment Gap Analysis Identifying Power Sources Channels Conflict Goal of Channel coordination Insights for Specific Institutions
Service Output Demand Differences
Framework of Channel Design and Implementation
Channel Design Process
Segmentation Recognize Respond Target customer Service Output demand Decision about efficient Channel Response
Framework of Channel Design and Implementation
Channel Design Process Channel Structure
What kind of intermediaries are in my channel ?
Who are they ? How many of them ?
Splitting the work load Define responsibilities Area of specialization
Framework of Channel Design and Implementation
Channel Design Process Degree of Commitment
Distribution Alliance Vertical Integration/Ownership
Gap Analysis What do I have to change ?
Framework of Channel Design and Implementation
Channel Implementation Process Channel Power
Identify Sources Channel Conflict
Identify actual and potential source Manage/Defuse Conflict
Use Power Source Goal
Channel Coordination
Framework of Channel Design and Implementation
Channel Design Channel Implementation
Insights for Specific Channel Institutions Retailing, Wholesaling and logistics, Franchising
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