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8/10/2019 MM Chapter 14
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Marketing Management
Marketing hannel Strategies
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Marketing Channels
Sets of interdependent organizationsinvolved in the process of making a
product or a service available for useor consumption.
Trade= retailer, distributor orwholesaler.
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A supply chainis a system oforganizations, people, technology,
activities, information and resourcesinvolved in moving a product or servicefrom supplier to customer.
Supply chain activities transform naturalresources, raw material and componentsinto a finished product that is delivered tothe end customer.
Marketing Channels Concepts
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Logistics involves the integration ofinformation, transportation, inventory,
warehousing, material handling, andpackaging, and occasionally security.
Logistics is a channel of the supply chain
which adds the value of time and placeutility.
Marketing Channels Concepts
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Marketing Channel Flows
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Consumer Marketing Channels
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Number of Intermediaries
Exclusive
Selective
Intensive
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Conventional distribution systemsconsist of one or more independent
producers, wholesalers, and retailers.Each seeks to maximize its own profits,and there is little control over the othermembers and no formal means for
assigning roles and resolving conflict.
Conventional Distributions Systems
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Vertical marketing systems (VMSs)
provide channel leadership and consist ofproducers, wholesalers, and retailersacting as a unified system and consist of:
Corporate marketing systems
Contractual marketing systems Administered marketing systems
Vertical marketing systems
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Corporate verticalmarketing
system integratessuccessive stages ofproduction anddistribution under
single ownership
Vertical Marketing Systems
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Contractual vertical marketing system
consists of independent firms at differentlevels of production and distribution whojoin together through contracts to obtainmore economies or sales impact than each
could achieve alone. The most commonform is the franchise organization.
Vertical Marketing Systems
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Administered verticalmarketingsystemhas a few
dominant channel memberswithout common ownership.Leadership comes from size and
power.
Vertical Marketing Systems
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Horizontal marketingsystemsare when two or
more companies at onelevel join together tofollow a new marketingopportunity. Companiescombine financial,production, or marketingresources to accomplishmore than any onecompany could alone.
Horizontal Marketing Systems
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Multichannel Distribution systems(Hybrid marketing channels)are when asingle firm sets up two or more marketingchannels to reach one or more customersegments
Multichannel Distribution Systems
Hybrid Marketing Channels
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Disintermediationoccurs
when product or serviceproducers cut outintermediaries and godirectly to final buyers,
or when radically newtypes of channelintermediaries displacetraditional ones
Changing Channel Organization
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Strategies
1. Push Strategy
2. Pull Strategy