© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 15-5 APPLE STORES: ADDING HIGH-TOUCH TO HIGH-TECH MARKETING CHANNELS

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 15-7 FIGURE 15-1 FIGURE 15-1 Terms used for marketing intermediaries

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 15-8 FIGURE 15-A FIGURE 15-A Structure of marketing channels

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 15-9  Functions Performed by Intermediaries NATURE AND IMPORTANCE OF MARKETING CHANNELS Value Created by Intermediaries Transactional Function Logistical Function Facilitating Function  Consumer Benefits From Intermediaries

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide FIGURE 15-2 FIGURE 15-2 How intermediaries minimize transactions

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide FIGURE 15-3 FIGURE 15-3 Marketing channel functions performed by intermediaries

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide FIGURE 15-4 FIGURE 15-4 Common marketing channels for consumer goods and services

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide FIGURE 15-5 FIGURE 15-5 Common marketing channels for business goods and services

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide FIGURE 15-6 FIGURE 15-6 Representative consumer electronic marketing channels

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide MARKETING NEWSNET Nestlé and General Mills— Cereal Partners Worldwide

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide FIGURE 15-8 FIGURE 15-8 Types of vertical marketing systems

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide FIGURE 15-B FIGURE 15-B Factors affecting channel choice and management

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide American Eagle Outfitters What new marketing channel opportunities are created by the Internet?

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin MARKETING NEWSNET Wrigley Markets a Controlled Substance in Singapore—Chewing Gum Slide 15-36

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide CHANNEL CHOICE AND MANAGEMENT  Target Market Coverage Channel Design Considerations Intensive Distribution Intensive Distribution Exclusive Distribution Exclusive Distribution Selective Distribution Selective Distribution

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide CHANNEL CHOICE AND MANAGEMENT  Satisfying Buyer Requirements Channel Design Considerations Information Convenience Variety Attendant Services  Profitability

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide Schick Why the market share leader in Japan?

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide CHANNEL CHOICE AND MANAGEMENT  Conflict in Marketing Channels Channel Conflict Channel Conflict Channel Relationships: Conflict, Cooperation, and Law Vertical Conflict Horizontal Conflict  Disintermediation Disintermediation

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide CHANNEL CHOICE AND MANAGEMENT  Cooperation in Marketing Channels Channel Captain Channel Captain Channel Relationships: Conflict, Cooperation, and Law

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide FIGURE 15-C FIGURE 15-C Sources of influence for a channel captain

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide ETHICS AND SOCIAL RESPONSIBILITY ALERT The Ethics of Slotting Allowances

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide CHANNEL CHOICE AND MANAGEMENT Channel Relationships: Conflict, Cooperation, and Law Dual Distribution  Legal Considerations Legal Considerations Vertical Integration Exclusive Dealing Tying Arrangements Refusal to Deal Resale Restrictions

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide FIGURE 15-9 FIGURE 15-9 Channel strategies and practices affected by legal restrictions