In chapter 11 you will understand how and why marketing specialists develop to make channel systems more effective. Understand the universal functions of marketing. Understand why some firms use direct channel systems while others rely on intermediaries and indirect systems. Understand how to develop co-operative relationships - and avoid conflict - in channel systems.
Trang 1
Place and
Development of
Channel Systems
Trang 2Chapter 11 Objectives
1 Understand what product
classes suggest about Place
objectives.
2 Understand why some firms
use direct channel systems
while others rely on
intermediaries and indirect
systems.
3 Understand how and why
marketing specialists develop
to make channel systems
more effective.
4 Understand how to develop
cooperative relationships—
and avoid conflicts—in
channel systems.
5 Know how channel members
in vertical marketing systems shift and share functions—to meet customer needs.
6 Understand the differences between intensive, selective, and exclusive distribution.
7 Understand the important new terms.
Trang 3Strategy Decision Areas in Place
Type of channel
Type of physical distribution facilities needed
How to manage channels
Middlemen/
facilitators needed
Degree of market
exposure desired
Indirect Direct
Place objectives
Customer service level desired
Trang 4Why a Firm May Want to Use Direct Channels
Greater Control
Lower Cost
Value added subsequent to
production process
Value added subsequent to
production process
Direct contact with Customer Needs
Direct contact with Customer Needs
Quicker Response or Change in Marketing Mix
Quicker Response or Change in Marketing Mix
Suitable Middlemen Not
Available
Suitable Middlemen Not
Available
Some
Reasons
for Choosing
Direct Channels
Some
Reasons
for Choosing
Direct Channels
Trang 5Bulk-Breaking
Bulk-Breaking
Assorting Sorting
Regrouping Activities
Trang 6Managing Channel Relationships
Role of Channel Captain Common Objectives Conflict Handling
Whole-Channel Product-Market Commitment
Choosing the Type of
Relationship
Key Issues in
Channel
Management
Trang 7Vertical Marketing Systems
Characteristics
Type of channel
Little or none Some to good Fairly good to good Complete
None power and Economic
leadership Contracts
One company ownership
Typical
“inde-pendents” McDonald’s Florsheim
General Electric
Amount of
cooperation
Traditional
Vertical marketing systems
Administered Contractual Corporate
Control maintained
by
Examples
Trang 8= number of outlets
Intensive
Selective
Exclusive
What Market Exposure Fits the Marketing Objectives
Market Exposure
Trang 9Channel of Distribution
Direct Marketing
Discrepancy of Quantity
Discrepancy of Assortment
Regrouping Activities
Accumulating
BulkBreaking
Sorting
Assorting
Traditional Channel Systems
Channel Captain
Vertical Marketing Systems Corporate Systems
Vertical Integration Administered Systems Contractual Systems Ideal Market Exposure Intensive Distribution Selective Distribution Exclusive Distribution Dual Distribution
Reverse Channels
Key Terms