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Chap 12 - Place

The document discusses marketing channels and distribution systems. It covers supply chain networks and the roles of intermediaries in distribution channels. The document also discusses different types of distribution channels including conventional, vertical, and horizontal systems as well as hybrid channels. It concludes by discussing channel design decisions around intensive, exclusive and selective distribution strategies.

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25 views3 pages

Chap 12 - Place

The document discusses marketing channels and distribution systems. It covers supply chain networks and the roles of intermediaries in distribution channels. The document also discusses different types of distribution channels including conventional, vertical, and horizontal systems as well as hybrid channels. It concludes by discussing channel design decisions around intensive, exclusive and selective distribution strategies.

Uploaded by

Hải Hà Bạch Thị
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We take content rights seriously. If you suspect this is your content, claim it here.
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TA NGUYỄN NGỌC ANH THƯ

CHAP 12: MARKETING CHANNELS

I. Supply chain, value delivery network


- Supply chain network:

• Upstream partners: input for a product (raw material, experts, finance, etc.)
• Downstream partners: mkt channels or distribution bringing products closer to
customers => phần sẽ học trong chap này
- Mkt channel / distribution channel: set of interdependent organizations making
products/services available for customer => Intermediaries / middle-man => through
their contaces, experience, specialization and scale of operations => offer producers
greater efficiency

- Number of channel level: a layer of intermediaries that performs some work in


bringing the product and its ownership closer to the final buyer

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TA NGUYỄN NGỌC ANH THƯ

Channel 1: direct mkt channel


Channel 2,3: indirect mkt channel
(Mỗi middle-man sẽ là một member channel)

II. Channel behaviors


- Channel conflict: each channel work for their own short-run interests > channel conflict
• Horizontal conflict: occur among firms at same level channel (FPT, Thegioididong)
• Vertical conflict: different levels (Apple – higher level & authorized stores – lower
level)
- Types of distribution channels (giải quyết conflict):

Coventional distributions systems: independent > seek and maximize their own profits >
little control > no means for assigning roles and resolve conflict
Vertical mkt system (VMS): producers, wholesalers and retailers unify > one out of three
owns others, contract w/ them, has so much power > avoid conflicts
• Corporate VMS: one controls everything from process, budget, marketing,
distibute > not depend others
ex: Apple có thể tự sx ra sp, làm mkt cho n, sell n cho customers > ko bị phụ thuộc vào
others

• Contractual VMS: opearates independently but bound by contractual agreement


> make sure achive common goals, franchise is typical for contractual VMS

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TA NGUYỄN NGỌC ANH THƯ

o manufacturer-sponsored retailer (ex: cty Ford có thể sx xe và tự phân phối


tuy nhiên vẫn để retailer bán xe của họ)
o manufacturer-sponsored wholesaler (ex: coca cola đưa syrup concentrate
cho các bottling manufactureer > distribute to local)
o service-sponsored retailer (ex: KFC)
• Administered VMS: one or a few members of channel is senior, has more market
power due to its size and market influence
ex: các sp từ P&G or Unilever là cty FMCG dominate thị trường
Horizontal mkt sys (HMS): 2 or more (unrelated) company at one level join together >
new mkt opportunity & accomplish more (finance, production, mkt) than do alone
ex: Phúc Long & Winmart
Hybrid mkt channels (Mutichannel): a single firm set up 2 or more mkt channels > reach
more customer segemnt
ex: Samsung > bán qua online (tiktokshop, shoppe,…) ; retailers (TGDĐ, FPT…) ; tại store..

III. Channel design decisions


- Intensive distribution: stock products as many outlets as possible
ex: convenience products and common raw materials (toothpaste, chewing gum) - FMCG
- Exclusive distribution: limited number of dealer having right to distribute
ex: luxury brand
- Selective distribution: more than one but fewer than all willing to carry the
company’s products
ex: consumer electronics, furniture, and home appliance brands (Iphone ở authorized
retailers)

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