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Marketing Channel Factors and Designs By: James Jenkins
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Introduction Marketing Channel: individuals and firms involved in making a product or service available for consumption by consumers or industrial users Consists of Producers, agents, wholesalers, retailers, and consumers
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Channel Choice and Management Factors Choices between different marketing channels depend on factors involved Environmental- Changing lifestyles, growing technology, and regulatory factors Tupperware Lifting the ban of chewing gum in Singapore
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Strict laws lighten up Chewing Gum banned in 1992 after littering problem Ban was finally partially lifted in 2004 for prescriptions and smokers Not available in convenience stores ID required
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Factors cont. Consumer- choosing best intermediary to reach target market Answering questions: Who? Where? When? How? What? Product- distribution is determined by value of products Sophisticated products sold directly Low involvement products sold indirectly
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Factors cont. Company-based on the firm’s financial, human, or technological capabilities Applies to intermediaries as well
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Channel Designs With many alternatives and factors considered, firms have three major points to be recognized: Coverage of target market Satisfying Buyer Requirements Profitability
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Designs cont. Target Market Coverage- using density of stores for distribution of product Intensive- placement of product in as many stores possible Exclusive- distribution into only one outlet that carries item Selective- firm selects a few retail outlets to provide product
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Design cont. Satisfying Buyer Requirements- fulfilling needs that buyers may have Includes information, convenience, variety, and attendant services Maximizing Profit- considering distribution, advertising, and expenses to choose best channel
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Conclusion Marketing channels need to be well coordinated and planned so that the firms maximize their productivity This also is necessary to keep the consumers satisfied
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Works Cited www.wrigley.com/products/side_orbit.gif http://news.bbc.co.uk/2/hi/uk_news/3512 498.stm
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