Chapter 16 Marketing Channels

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Presentation transcript:

Chapter 16 Marketing Channels

In this chapter… Marketing channels of distribution and why intermediaries are needed. Traditional marketing channels, electronic marketing channels, and vertical marketing systems. Factors that marketing executives consider when selecting and managing a marketing channel.

The variety of terms used for marketing intermediaries that vary in specificity and use in consumer and business markets

Functions Performed by Intermediaries NATURE AND IMPORTANCE OF MARKETING CHANNELS THE VALUE CREATED BY INTERMEDIARIES Marketing Channel Functions Performed by Intermediaries Transactional Function Logistical Function Facilitating Function Utilities Received by Consumers

Marketing channel intermediaries perform three functions, each consisting of different activities

Direct Channel Indirect Channel CHANNEL STRUCTURE & ORGANIZATION MARKETING CHANNELS FOR CONSUMER PRODUCTS AND SERVICES Direct Channel Indirect Channel Retailers WholesalersRetailers AgentsWholesalersRetailers

Common marketing channels for consumer products and services by the kind and number of intermediaries

Direct Channel Indirect Channel CHANNEL STRUCTURE & ORGANIZATION MARKETING CHANNELS FOR BUSINESS PRODUCTS AND SERVICES Direct Channel Indirect Channel Industrial Distributor Agents AgentsIndustrial Distributors

Common marketing channels for business products and services by the kind and number of intermediaries

Electronic Marketing Channels CHANNEL STRUCTURE & ORGANIZATION ELECTRONIC & DIRECT MARKETING CHANNELS; MULTICHANNEL MARKETING Electronic Marketing Channels Direct Marketing Channels Multichannel Marketing

Consumer electronic marketing channels are similar to those for consumer products and services

Strategic Channel Alliances CHANNEL STRUCTURE & ORGANIZATION DUAL DISTRIBUTION & STRATEGIC CHANNEL ALLIANCES Dual Distribution Honey Nut Cherrios Ad Strategic Channel Alliances

Three types of vertical marketing systems: corporate, contractual (most popular), and administered

CHANNEL STRUCTURE & ORGANIZATION VERICAL MARKETING SYSTEMS Vertical Marketing Systems Corporate Systems Forward Integration Backward Integration Contractual Systems Wholesaler-Sponsored Voluntary Chains Retailer-Sponsored Cooperatives

CHANNEL STRUCTURE & ORGANIZATION VERICAL MARKETING SYSTEMS Contractual Systems Franchising Manufacturer-Sponsored Retail Franchises Manufacturer-Sponsored Wholesale Franchises Service-Sponsored Retail Franchises Service-Sponsored Franchises Administered Systems

CHANNEL CHOICE AND MANAGEMENT CHANNEL CHOICE CONSIDERATIONS Target Market Coverage (Density) Intensive Distribution Exclusive Distribution Gucci Selective Distribution

CHANNEL CHOICE AND MANAGEMENT CHANNEL CHOICE CONSIDERATIONS Buyer Requirements Information Convenience Variety Pre- or Post-Sale Service Profitability

CHANNEL CHOICE AND MANAGEMENT CHANNEL RELATIONSHIPS Sources of Channel Conflict Vertical Conflict Disintermediation Horizontal Conflict

CHANNEL CHOICE AND MANAGEMENT CHANNEL RELATIONSHIPS Channel Captain Channel Influence Economic Identification Expertise Legitimate Right