1. Distributing Products
Week 10

3. How channel members add value

4. The best channel system should achieve ideal market exposure
Intensive
Selective
Market Exposure Strategies
Intensive
Exclusive
Selective
= number of outlets

5. Marketing channel

6. Number of channel members

7. Multichannel Distribution Channel
Distribution Systems
Multichannel Distribution Channel

9. Marketing System Vertical Marketing System Multichannel
Producers, wholesalers, and retailers act as unified system
Corporate VMS
Contractual VMS
Administered VMS
Marketing
System
Multichannel
Distribution System
(Hybrid Marketing System
A single firm sets up 2 or more marketing channels to reach 1 or more customer levels
Horizontal Marketing System
2 or more companies at one level join together to follow a new marketing opportunities

10. Vertical Marketing Systems Focus on Final Customers
Characteristics
Type of channel
Little or
none
None
Typical
“independents”
Amount of cooperation
Traditional
Vertical marketing systems
Administered
Contractual
Corporate
Control maintained by
Examples
Some to good
Economic power and leadership
General Electric
Fairly good
to good
Contracts
McDonald’s
Complete
One company ownership
Florsheim

11. Types of Vertical Marketing Systems
CONTROL
Corporate VMS
Common ownership at different levels
of the channel
High
Contractual VMS
Contractual agreements among
channel members
Administered VMS
Leadership is assumed by one or
a few dominant members
Low

12. Channel systems can be complex

15. Wholesalers

16. Wholesaler Marketing Decisions

17. Types of Wholesalers

18. Major Types of Wholesalers

22. Retailer marketing Decisions

23. Major store retailer types

24. Major types of retail organizations

29. Store Atmosphere

30. Shopping Center

31. Logistic and supply chain management

32. Nature and importance of marketing logistics

33. Physical Distribution Gets It to Customers
Logistics or Physical Distribution

34. Water Transportation

35. Airfreight Is Expensive but Fast and Growing

36. Physical Distribution Customer Service

38. Which transporting alternative is the best ?

39. A cost comparison of alternative systems

40. The transporting function adds value to a Marketing Strategy

41. Specialized Storing Facilities May Be Required

42. thank you

46. Innovative marketing channels

47. Channel specialists may reduce discrepancies and separations
The UK’s leading supermarket chain wanted to provide the freshest food possible in the most environmentally friendly way. Who did Tesco turn to for help?

48. Limiting Market Exposure
Retailer
Producer
Vertical Arrangements May Be Legal
Wholesaler
Retailer
Retailer
Retailer
Horizontal Arrangements Are Illegal

49. Channel Conflict
When Tupperware decided to sell its familiar containers at retail through Target stores, Tupperware avoided conflicts with its army of in-home sales consultants by inviting them into the stores to demonstrate the products.

50. Vertical Marketing Systems

51. Exclusive Distribution

52. International Distribution Channels

53. Retailing & Wholesaling

54. Producers or Middlemen may be channel captains

55. Logistics functions

56. Trade-Offs of Costs, Service and Sales

57. Total Inventory Cost Cost of inventory becoming obsolate
Cost of storage facilities
Handling
costs
Cost of damage while in inventory
Cost of risk
Cost of inventory becoming obsolate
Interest expence & opportunity cost

59. Samsung Galaxy Pad

61. Tunes Hotels

62. Kidzania

63. Kompas.com