Lecture on Managing Marketing Channels and Wholesaling

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Presentation transcript:

Lecture on Managing Marketing Channels and Wholesaling www.AssignmentPoint.com

You can eliminate the middleman but you can not eliminate its functions Defining Marketing Channels of Distribution

Marketing intermediaries

NATURE AND IMPORTANCE OF MARKETING CHANNELS Value Created by Intermediaries

How intermediaries minimize transactions

Marketing channel functions performed by intermediaries

CHANNEL STRUCTURE AND ORGANIZATION Marketing Channels for Consumer Goods and Services Direct channel Indirect channels

Common marketing channels for consumer marketing

Common marketing channels for business marketing

Representative electronic marketing channels

CHANNEL STRUCTURE AND ORGANIZATION Direct Marketing Channels Multiple Channels and Strategic Alliances Dual distribution Strategic channel alliances

Nestlé and General Mills Food industry’s first strategic alliance

CHANNEL STRUCTURE AND ORGANIZATION A Closer Look at Channel Intermediaries Merchant Wholesalers Agents and Brokers Manufacturer’s agents Selling agents Brokers Manufacturer’s Branches and Offices

CHANNEL STRUCTURE AND ORGANIZATION Vertical Marketing Systems and Channel Partnerships

Types of vertical marketing systems

CHANNEL STRUCTURE AND ORGANIZATION Vertical Marketing Systems and Channel Partnerships Corporate Systems Contractual Systems Franchising Administered Systems Channel Partnerships

CHANNEL CHOICE AND MANAGEMENT Factors Affecting Channel Choice and Management Environmental Factors Consumer Factors Product Factors Company Factors

CHANNEL CHOICE AND MANAGEMENT Channel Design Considerations Target Market Coverage Intensive distribution Exclusive distribution Selective distribution Satisfying Buyer Requirements Profitability Global Dimensions of Marketing Channels

CHANNEL CHOICE AND MANAGEMENT Channel Relationships: Conflict, Cooperation, and Law Conflict in Marketing Channels Disintermediation Cooperation in Marketing Channels Channel captain Legal Considerations

Channel strategies and practices affected by legal restrictions