Marketing Channels Chapter 13. Determine 2-3 different ways of transportation for the following 24...
Preview:
Citation preview
- Slide 1
- Marketing Channels Chapter 13
- Slide 2
- Determine 2-3 different ways of transportation for the
following 24 air compressors, each of 36x36x60, 400 p. each to
Dallas, TX. Two crates of rare orchids, 12x24x48, each weighing 27
pounds to NYC 6 classic cars purchased by an eccentric, wealthy
customer in UK. The cars are not currently running.
- Slide 3
- Vocabulary Marketing (Supply/Distribution)Channel: group of
individuals and organizations that directs the flow of products
from producers to customers. Supply chain management: starts before
physical distribution, covering procurement of inputs, conversion
into finished products, and product movement to final
destinations
- Slide 4
- o ? retail stores o wholesalers o telemarketing o mail order
catalogs o web sites "Push" : getting channels to your product
"Pull" : getting consumers to ...your product by name Firm Channel
members Customer
- Slide 5
- Why would a manufacturer want to use a wholesaler or a
retailer?
- Slide 6
- Functions performed by intermediaries Transactional (promote,
negotiate, take risks ) Logistical Facilitating (researching and
financing)
- Slide 7
- Logistical : Physical Distribution Gets It to Customers
Logistics or Physical Distribution Coordinating the flow of
information among channel members
- Slide 8
- Assorting .. Bulk-Breaking Allocating or Bulk-Breaking
Allocating or Bulk-Breaking Accumulating (Medical Clinics) (Medical
Clinics) Facilitating : Channel Specialists Adjust Discrepancies
with Regrouping Activities Sorting (Grading Oranges) Sorting
(Grading Oranges) COSTCO Heterogeneity QUANTITY ASSORTMENT
- Slide 9
- Marketing channels add Value
- Slide 10
- Channel Intermediaries Retailers Merchant Wholesalers Merchant
Wholesalers Agents and Brokers Agents and Brokers Take Title to
Goods Do NOT Take Title to Goods
- Slide 11
- Types of Marketing Channels Channels for Consumer Products
Direct Channel TRADITIONAL DUAL DISTRIBUTION & REVERSE
CHANNELS
- Slide 12
- Exploring Multiple Channel Options: Benefits of Different
Channels
- Slide 13
- Types of Marketing Channels Channels for Industrial
Products
- Slide 14
- CHANNEL STRATEGY DECISIONS 1.Selection of a Marketing Channel
2.Intensity of Distribution Distribution 3.Management of
Relationships Relationships
- Slide 15
- 1.Selection of a Marketing Channel Market factors: Consumer vs
Business markets (large vs. small quant, service) Geographic
location (concentrated, dispersed) Product factors: Complex,
customized, expensive Products life cycle/delicacy (e.g. mature,
perishable) Producer factors: Big/small Image protection
- Slide 16
- 2. Intensity of Market coverage Selective..
- Slide 17
- Red Bull is sold at convenience stores, supermarkets and
warehouse clubs. Red Bull has _________ distribution A. selective
B. exclusive C. intermediate D. intensive E. limited
- Slide 18
- 3. Management of relationship
- Slide 19
- Retailer Distributor Retailer Horizontal
- Slide 20
- "Captive Channels" : channels owned by firm "Non-Captive
Channels" : channels not owned by firm "When do retailers have
"channel power"? firm's product is not well differentiated from
competitors threat of backward integration Firm Channels
Customer
- Slide 21
- Channel conflict examples Firm: Your retail prices are too
high, and are driving down demand Retailer: With your wholesale
prices, its the only way we can make money Firm: You carry too many
lines, our product isn't even noticed on shelves Retailer:
Customers come first. BTW, why don't you prune your line. Firm
Channels Customer
- Slide 22
- "free riding" by internet channel customers who use more than
one channel get confused return policies origin of merchandise
different prices Firm Website Customer Retail store
- Slide 23
- Questions?