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Marketing Management Marketing 6201
MANAGING MARKETING CHANNELS OF DISTRIBUTION AND LOGISTICS Marketing Management Marketing 6201
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The variety of terms used for marketing intermediaries that vary in use in consumer and business markets
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Intermediaries minimize transactions and the cost of distribution for producers and customers
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Marketing channel intermediaries perform three functions, each consisting of different activities
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Direct Channel Indirect Channel
CHANNEL STRUCTURE & ORGANIZATION MARKETING CHANNELS FOR CONSUMER GOODS AND SERVICES Direct Channel Indirect Channel Retailers WholesalersRetailers AgentsWholesalersRetailers
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Common marketing channels for consumer offerings by the kind and number of intermediaries
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Direct Channel Indirect Channel
CHANNEL STRUCTURE & ORGANIZATION MARKETING CHANNELS FOR BUSINESS GOODS AND SERVICES Direct Channel Indirect Channel Industrial Distributor Agents AgentsIndustrial Distributors
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Common marketing channels for business offerings by the kind and number of intermediaries
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Electronic Marketing Channels
CHANNEL STRUCTURE & ORGANIZATION ELECTRONIC & DIRECT MARKETING CHANNELS; MULTICHANNEL MARKETING Electronic Marketing Channels Direct Marketing Channels Multichannel Marketing
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Consumer electronic marketing channels are similar to those for consumer and business offerings
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Strategic Channel Alliances
CHANNEL STRUCTURE & ORGANIZATION DUAL DISTRIBUTION & STRATEGIC CHANNEL ALLIANCES Dual Distribution Strategic Channel Alliances
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HELP YOUR CHILD FEEL BETTER WITH TRIAMINIC® PRODUCTS AND A REDBOX MOVIE RENTAL
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The Top Five Reasons for Selling Through Distributors
1. Customers demand it. 2. Market access. 3. Lower marketing and selling expenses. 4. Distributors perform necessary functions. 5. Reduced collection problems. 15
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Functions performed by independent wholesaler types
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CHANNEL STRUCTURE & ORGANIZATION CHANNEL INTERMEDIARIES
Merchant Wholesalers Full-Service Wholesalers General Merchandise (Full-Line) Wholesalers Specialty Merchandise (Limited-Line) Wholesalers
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CHANNEL STRUCTURE & ORGANIZATION CHANNEL INTERMEDIARIES
Merchant Wholesalers Limited-Service Wholesalers Rack Jobbers Cash and Carry Wholesalers Drop Shippers/Desk Jobbers Truck Jobbers
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CHANNEL STRUCTURE & ORGANIZATION CHANNEL INTERMEDIARIES
Agents and Brokers Manufacturer’s Agents Selling Agents Brokers Manufacturers Branch Offices Sales Offices
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Three types of vertical marketing systems: corporate, contractual (most popular), and administered
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CHANNEL STRUCTURE & ORGANIZATION VERICAL MARKETING SYSTEMS
Vertical Marketing Systems Corporate Systems Forward Integration Backward Integration Contractual Systems Wholesaler-Sponsored Voluntary Chains Retailer-Sponsored Cooperatives
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CHANNEL STRUCTURE & ORGANIZATION VERICAL MARKETING SYSTEMS
Contractual Systems Franchising Manufacturer-Sponsored Retail Franchise Systems Manufacturer-Sponsored Wholesale Systems Service-Sponsored Retail Franchise Systems Service-Sponsored Franchise Systems
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McDonalds and H&R Block What vertical marketing system does each use?
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CHANNEL CHOICE AND MANAGEMENT CHANNEL CHOICE CONSIDERATIONS
Target Market Coverage Intensive Distribution – you are everywhere Selective Distribution – specialty retailers Exclusive Distribution – very limited * * Think Neiman Marcus or Sak’s Fifth Avenue
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CHANNEL CHOICE AND MANAGEMENT CHANNEL CHOICE CONSIDERATIONS
Profitability Margins Earned Channel Costs Global Dimensions of Marketing Channels
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USING MARKETING DASHBOARDS Channel Sales and Profit at Charlesburg Furniture
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CHANNEL CHOICE AND MANAGEMENT CHANNEL RELATIONSHIPS
Legal Considerations Dual Distribution Tying Arrangements Vertical Integration Refusal to Deal Exclusive Dealing Resale Restrictions
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The Clayton Act and Sherman Act place legal restrictions on specific marketing channel strategies and practices
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SIGNIFICANCE OF SUPPLY CHAIN AND LOGISTICS MANAGEMENT KEY CONCEPTS
Logistics – getting the right amount of the right products to the right place at the right time at the lowest possible cost. Logistics Management – the practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods from the point of origin to the point of consumption to satisfy customers requirements.
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Relating logistics management and supply chain management to supplier networks and marketing channels
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The automotive supply chain includes thousands of firms that provide the 5,000 or so parts in a typical car
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Supply chain managers balance total logistics cost factors against customer service factors
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Advantages and disadvantages of five modes of transportation
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KEY LOGISTICS FUNCTIONS IN A SUPPLY CHAIN
TRANSPORTATION Railroads Intermodal Transportation Piggy-Back or Trailer on Flatcar (TOFC) Containers
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KEY LOGISTICS FUNCTIONS IN A SUPPLY CHAIN
TRANSPORTATION Motor Carriers Air Carriers and Express Companies Freight Forwarders/ Express Companies
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KEY LOGISTICS FUNCTIONS IN A SUPPLY CHAIN
TRANSPORTATION Pipelines Water
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KEY LOGISTICS FUNCTIONS IN A SUPPLY CHAIN
WAREHOUSING AND MATERIALS HANDLING Storage Warehouses Distribution Centers Materials Handling
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