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Managing Marketing Channels

Published byRachel Ross Modified over 6 years ago

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Presentation on theme: "Managing Marketing Channels"— Presentation transcript:

1 Managing Marketing Channels
Chapter 16 Selecting and Managing Marketing Channels Marketing Management Tenth Edition Philip Kotler

2 Objectives Work Performed by Marketing Channels
Channel-Design Decisions Channel-Management Decisions Channel Dynamics

3 How a Distributor Reduces the Number of Channel Transactions
A. Number of contacts without a distributor M x C = 3 X 3 = 9 1 3 2 4 5 6 7 8 9 = Manufacturer = Customer

4 How a Distributor Reduces the Number of Channel Transactions
B. Number of contacts with a distributor M x C = = 6 Store 1 2 3 4 5 6 = Manufacturer = Distributor = Customer

5 Distribution Channel Functions
Information Transfer Communication Payments Negotiation Physical Distribution Ordering Risk Taking Financing

6 Consumer Marketing Channels
Manufacturer 0-level channel Consumer 1-level channel Manufacturer Retailer Consumer Mfg 2-level channel Wholesaler Retailer Consumer Mfg 3-level channel Wholesaler Jobber Retailer Consumer

7 Industrial Marketing Channels
Manufacturer Consumer Industrial distributors Manufacturer’s representative Manufacturer’s sales branch

8 Customers’ Desired Service Levels
Lot size Waiting time Spatial convenience Product variety Service backup

9 Level of sales (dollars)
Break-Even Cost Chart Selling costs (dollars) Level of sales (dollars) Manufacturer’s sales agency Company sales force SB

10 Selecting Training Motivating Evaluating
Channel Management Decisions FEEDBACK Training Motivating Evaluating

11 Common Ownership at Different
Corporate Common Ownership at Different Levels of the Channel Types of Vertical Marketing Systems Administered Leadership is Assumed by One or a Few Dominant Members Contractual Contractual Agreement Among Channel Members

12 Conventional Distribution Channel vs. Vertical Marketing Systems
Manufacturer Manufacturer Wholesaler Wholesaler Retailer Retailer Consumer Consumer

13 Causes of Channel Conflict
Incompatibility Difference in Perception Dependence

14 Legal & Ethical Issues in Channel Relations
Exclusive Dealing Exclusive Territories Tying Agreements Dealers’ Rights

15 Review Work Performed by Marketing Channels Channel-Design Decisions
Channel-Management Decisions Channel Dynamics

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