Chap 12
Chap 12
Chap 12
PRINCIPLES OF MARKETING
Chapter 12
Distribution Channels
and
Logistics Management
12-2
Distribution Channels
• Channel decisions
– affect other marketing decisions
– involve long-term commitments
12-3
Role of Intermediaries
Channel Functions
•Information
•Promotion
•Contact
•Matching
•Negotiation
•Physical Distribution
•Financing
•Risk taking
12-5
Channel Levels
•Manufacturer
•Wholesaler
•Retailer
•Consumer
12-6
• Corporate
– common ownership at different channel levels
• Contractual
– contractual agreement among channel members
• Administered
– leadership assumed by dominant members
12-8
Selecting
FEEDBACK
Motivating
Evaluating
12-11
Logistics
Logistics Functions
• Order Processing
• Warehousing
• Inventory Management
• Transportation
Truck
Flexible in routing & time schedules, efficient
for short-hauls of high value goods
Water
Low cost for shipping bulky, low-value
goods, slowest form
Pipeline
Ship petroleum, natural gas, and chemicals
from sources to markets
Air
High cost, ideal when speed is needed or to
ship high-value, low-bulk items
Integrated Logistics Management 12-15
Third-Party Logistics