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Chapter 12 Distribution Channels

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15 views24 pages

Chapter 12 Distribution Channels

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cocakar2016mym
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Chapter 12: Marketing Channels

Delivering Customer Value


Marketing channel/distribution channel
relates mostly to price!
How do channel members add value?
Information
Promotion
Contact
Matching
Negotiating
Physical distribution
Financing
Risk taking
Upstream – Midstream - Downstream
Upstream Supplying raw materials, components, parts,
information,, finances, and expertise
Downstream: Wholesalers and retailers

Value A network composed of the company suppliers,


delivering distributions, and partnered customers
network:

Marketing channel/distribution channel =


a set of interdependent org that help make a
product or service available for use or
consumption by the consumer or
business user.
Channel level = a layer of intermediaries
Direct vs indirect channel
Channel conflicts
Horizontal Firms at the same level of the
conflict: channel i.e. a car dealer in the
same city
Vertical Firms at the different level of
conflict: the channel i.e. McDonald and
its independent franchisees.
VMS = vertical marketing system =
producer + wholesaler + retailer acting as
a unified system
Types of VMS
Corporate VMS: Integrating successive stages of productions and distribution
under single ownership i.e. Zara

Contractual VMS: Independent firms at different levels of production and


distribution that join together through contracts i.e. franchise org.
Hertz, Avis

Administered Big size and power of few dominant channel members i.e. P&G
VMS: commanding coop from resellers while Walmart, Home Depot
attract many manufacturers.
Corporate VMS
Contractual VMS
Administered VMS
Horizontal MKTG A channel arrangement in which two or more
system: companies at one level join together to follow a new
marketing opportunities
Multichannel A distribution system in which a single firm set up two
distribution system: or more marketing channels to reach one or more
customer segment
Disintermediation: The cutting of marketing channel intermediaries
Horizontal Marketing System –
Airline Alliances
DTC Brands
Types of Intermediaries
Intensive Distribution
Exclusive Distribution
Selective Distribution
MKTG To make profit from planning + implementing + controlling physical
logistics: flows of materials, final goods and related info from points of origin to
points of consumption.
Supply chain Managing upstream and downstream value-added flows of materials,
management: final goods and elated info among suppliers, the company, resellers
and final consumers.

Major logistics functions


Warehousing: To store the goods before being sold. Distributor center – to move
goods rather than to store them.

Inventory Too much vs too little vs just-in-time logistics system i.e. RFID, smart
management: tags, smart shelves

Transportation Trucks, railroads, air, water carriers, pipeline, internet, multimodal


: transportation

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