Marketing Management

Marketing 6201

MANAGING MARKETING CHANNELS OF DISTRIBUTION AND

LOGISTICS

The variety of terms used for marketing intermediaries that vary in use in consumer and business markets

Intermediaries minimize transactions and the cost of distribution for producers and customers

Marketing channel intermediaries perform three functions, each consisting of different activities

Common marketing channels for consumer offerings by the kind and number of intermediaries

Common marketing channels for business offerings by the kind and number of intermediaries

CHANNEL STRUCTURE & ORGANIZATIONELECTRONIC & DIRECT MARKETING CHANNELS;

MULTICHANNEL MARKETING

Electronic Marketing Channels

Direct Marketing Channels

Multichannel Marketing

Consumer electronic marketing channels are similar to those for consumer and business offerings

CHANNEL STRUCTURE & ORGANIZATIONDUAL DISTRIBUTION &

STRATEGIC CHANNEL ALLIANCES

Dual Distribution

Strategic Channel Alliances

HELP YOUR CHILD FEEL BETTER WITH TRIAMINIC® PRODUCTS AND A REDBOX

MOVIE RENTAL

1. Customers demand it.2. Market access.3. Lower marketing and selling expenses.4. Distributors perform necessary functions.5. Reduced collection problems.

The Top FiveReasons for Selling Through Distributors

Functions performed by independent wholesaler types

Three types of vertical marketing systems: corporate, contractual (most popular), and administered

McDonalds and H&R BlockWhat vertical marketing system does each use?

CHANNEL CHOICE AND MANAGEMENTCHANNEL CHOICE CONSIDERATIONS

Target Market Coverage

• Intensive Distribution – you are everywhere

• Exclusive Distribution – very limited *

• Selective Distribution – specialty retailers

* Think Neiman Marcus or Sak’s Fifth Avenue

CHANNEL CHOICE AND MANAGEMENTCHANNEL CHOICE CONSIDERATIONS

Profitability

• Margins Earned

• Channel Costs

Global Dimensions of Marketing Channels

USING MARKETING DASHBOARDSChannel Sales and Profit at

Charlesburg Furniture

CHANNEL CHOICE AND MANAGEMENTCHANNEL RELATIONSHIPS

Legal Considerations

•Dual Distribution

•Vertical Integration

•Exclusive Dealing

•Tying Arrangements

•Refusal to Deal

•Resale Restrictions

The Clayton Act and Sherman Act place legal restrictions on specific marketing channel strategies and practices

SIGNIFICANCE OF SUPPLY CHAINAND LOGISTICS MANAGEMENT

KEY CONCEPTS

Logistics – getting the right amount of the right products to the right place at the right time at the lowest possible cost.

Logistics Management – the practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods from the point of origin to the point of consumption to satisfy customers requirements.

Relating logistics management and supply chain management to supplier networks and marketing channels

The automotive supply chain includes thousands of firms that provide the 5,000 or so parts in a typical car

Supply chain managers balance total logistics cost factors against customer service factors

Advantages and disadvantages of five modes of transportation

KEY LOGISTICS FUNCTIONSIN A SUPPLY CHAIN

TRANSPORTATION

Railroads

• Containers

• Intermodal Transportation

• Piggy-Back or Traileron Flatcar (TOFC)

KEY LOGISTICS FUNCTIONSIN A SUPPLY CHAIN

TRANSPORTATION

Motor Carriers

Air Carriers and Express Companies

Freight Forwarders/Express Companies

KEY LOGISTICS FUNCTIONSIN A SUPPLY CHAIN

TRANSPORTATION

Pipelines

Water

KEY LOGISTICS FUNCTIONSIN A SUPPLY CHAIN

WAREHOUSING AND MATERIALS HANDLING

Storage Warehouses

Distribution Centers

Materials Handling