1. Marketing Channels / Distribution

2. Why do we have channels at all? Let’s cut out the middleman…

3. External Changes Create Opportunities and Threats to the Existing Channel Structure
Technological
Economic
Social
Political
Natural

4. What valued services do intermediaries provide?
Form
Time
Place
Possession

5. Sources of Channel Partner Power
Coercive
Reward
Legitimate
Referent
Expert

6. Some Options for Indirect
Manufacturer’s Representatives
Distributors/Wholesalers
Agents/Brokers

7. So how do you pick?

8. So how do you pick? Fit with your: Customer Characteristics
Existing Distribution System
Product/Service Attributes

9. Channel Decisions are not Isolated from everything else

10. Closing Thoughts: Do intermediaries cost more?
What valuable services do intermediaries provide?
What forces cause changes in channels?
It’s all about power.