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Lecture on Managing Marketing Channels and Wholesaling

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Presentation on theme: "Lecture on Managing Marketing Channels and Wholesaling"— Presentation transcript:

1 Lecture on Managing Marketing Channels and Wholesaling

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

3 Marketing intermediaries

4 NATURE AND IMPORTANCE OF MARKETING CHANNELS
Value Created by Intermediaries

5 How intermediaries minimize transactions

6 Marketing channel functions performed by intermediaries

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

8 Common marketing channels for consumer marketing

9 Common marketing channels for business marketing

10 Representative electronic marketing channels

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

12 Nestlé and General Mills Food industry’s first strategic alliance

13 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

14 CHANNEL STRUCTURE AND ORGANIZATION
Vertical Marketing Systems and Channel Partnerships

15 Types of vertical marketing systems

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

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

18 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

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

20 Channel strategies and practices affected by legal restrictions


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