1. If you sell tangible goods, channels and logistics matter
GOALS: You could explain push vs. pull strategies and what channels need to accomplish ( ), what makes for better channel arrangements ( ), how to cope with channel conflict ( ), and how to set and implement logistics objectives ( ).

2. Pull Strategy: Push Strategy: Manufacturer Channel partner Customer
Communication Flow
Product Flow

3. TASKS for some part of the channel (p
TASKS for some part of the channel (p. 233 offers more detail in a table)
Transport tangible goods
Advertise, which may include gathering information about buyers, competition, changes in the legal environment -- whatever
Store inventory
Kontact buyers, and after a sale Kollect the agreed-on price

4. So how would you design a channel, or evaluate the one you have?
Establish channel objectives from the customers’ perspective: Speed? Efficiency to cut costs? Convenience?
Identify major channel alternatives: Where would customers expect to buy what you are marketing?
Evaluate major channel alternatives. The Internet may be a second channel where you sell direct

5. Managing Channel Conflict
Adoption of superordinate goals
Exchange of employees
Joint membership in trade associations
Co-optation (give channel members at least advisory roles, and maybe power)
Diplomacy, mediation, or arbitration
Legal recourse

6. Logistics: think of cost/service tradeoffs
Calculating the Cost of Market-Logistics Systems
M = T + FW + VW + S
Where . . .
M = total market-logistics cost of proposed system;
T = total freight cost of proposed system;
FW = total fixed warehouse cost of proposed system;
VW = total variable warehouse cost of proposed system
S = total cost of lost sales due to average delivery delay