1. Multichannel Marketing Management 6218 MANAGING MARKETING CHANNELS OF DISTRIBUTION

2. APPLE STORES: CREATING A HIGH-TOUCH CUSTOMER EXPERIENCE IN A HIGH-TECH MARKETING CHANNEL

3. The variety of terms used for marketing intermediaries that vary in use in consumer and business markets

4. Intermediaries minimize transactions and the cost of distribution for producers and customers

5. NATURE AND IMPORTANCE OF MARKETING CHANNELS THE VALUE CREATED BY INTERMEDIARIES  Marketing Channel Marketing Channel  Functions Performed by Intermediaries Transactional Function Logistical Function Facilitating Function  Utilities Received by Consumers

6. Marketing channel intermediaries perform three functions, each consisting of different activities

7. CHANNEL STRUCTURE & ORGANIZATION MARKETING CHANNELS FOR CONSUMER GOODS AND SERVICES  Direct Channel  Indirect Channel Retailers Wholesalers  Retailers Agents  Wholesalers  Retailers

8. Common marketing channels for consumer offerings by the kind and number of intermediaries

9. CHANNEL STRUCTURE & ORGANIZATION MARKETING CHANNELS FOR BUSINESS GOODS AND SERVICES  Direct Channel  Indirect Channel Industrial Distributor Agents Agents  Industrial Distributors

10. Common marketing channels for business offerings by the kind and number of intermediaries

11. One Telecom Company’s Consumer Market Channels CUSTOMER ACQUISITION Business Office Smart Moves Newcomer Agent s CUSTOMER DEVELOPMENT Best Customer Centers RSC Service Upselling Direct Mail Outbound Telemarketin g Welcome Package Director y MASS MEDIA Advertising Response TV Radio Prin t Specialty MAILBOX MARKETING Direct Mail Catalog Internet FACE TO FACE Retail Stores Express Kiosks National Retailers Local Agents Direct Sales LIFESTYLE INTERCEPT Military Campu s Retiremen t Kids Away Event Marketin g On the Move AFFINITY Employee/ Employer Association s Co-Marketing Partners

12. CHANNEL STRUCTURE & ORGANIZATION ELECTRONIC & DIRECT MARKETING CHANNELS; MULTICHANNEL MARKETING  Electronic Marketing Channels Electronic Marketing Channels  Direct Marketing Channels Direct Marketing Channels  Multichannel Marketing Multichannel Marketing

13. Consumer electronic marketing channels are similar to those for consumer and business offerings

14. CHANNEL STRUCTURE & ORGANIZATION DUAL DISTRIBUTION & STRATEGIC CHANNEL ALLIANCES  Dual Distribution Dual Distribution  Strategic Channel Alliances Strategic Channel Alliances

15. HELP YOUR CHILD FEEL BETTER WITH TRIAMINIC ® PRODUCTS AND A REDBOX MOVIE RENTAL

16. 1.Customers demand it. 2.Market access. 3.Lower marketing and selling expenses. 4.Distributors perform necessary functions. 5.Reduced collection problems. The Top Five Reasons for Selling Through Wholesalers/Distributors

17. Functions performed by independent wholesaler types

18. CHANNEL STRUCTURE & ORGANIZATION CHANNEL INTERMEDIARIES  Merchant Wholesalers Merchant Wholesalers Full-Service Wholesalers  General Merchandise (Full-Line) Wholesalers  Specialty Merchandise (Limited-Line) Wholesalers

19. CHANNEL STRUCTURE & ORGANIZATION CHANNEL INTERMEDIARIES  Merchant Wholesalers Merchant Wholesalers Limited-Service Wholesalers  Rack Jobbers  Cash and Carry Wholesalers  Drop Shippers/Desk Jobbers  Truck Jobbers

20. CHANNEL STRUCTURE & ORGANIZATION CHANNEL INTERMEDIARIES  Agents and Brokers Manufacturer’s Agents Selling Agents Brokers  Manufacturers Branch Offices Sales Offices

21. Three types of vertical marketing systems: corporate, contractual (most popular), and administered

22. GOING ONLINE Visit an Apple Store to See What All the Excitement is About

23. CHANNEL STRUCTURE & ORGANIZATION VERICAL MARKETING SYSTEMS  Vertical Marketing Systems Vertical Marketing Systems Forward Integration  Corporate Systems Backward Integration Wholesaler-Sponsored Voluntary Chains  Contractual Systems Retailer-Sponsored Cooperatives

24. 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

25. McDonalds and H&R Block What vertical marketing system does each use?

26. CHANNEL STRUCTURE & ORGANIZATION VERICAL MARKETING SYSTEMS  Administered Systems  Channel Partnership Channel Partnership

27. CHANNEL CHOICE AND MANAGEMENT FACTORS AFFECTING CHANNEL CHOICE  Environmental Factors  Consumer Factors  Product Factors  Company Factors

28. CHANNEL CHOICE AND MANAGEMENT CHANNEL CHOICE CONSIDERATIONS  Target Market Coverage Intensive Distribution Exclusive Distribution Selective Distribution

29. CHANNEL CHOICE AND MANAGEMENT CHANNEL CHOICE CONSIDERATIONS  Satisfying Buyer Requirements Information Convenience Variety Pre- or Post-Sale Service

30. Jiffy Lube and Petco What buyer requirements have been satisfied? 15-30

31. CHANNEL CHOICE AND MANAGEMENT CHANNEL CHOICE CONSIDERATIONS  Profitability Margins Earned Channel Costs  Global Dimensions of Marketing Channels

32. USING MARKETING DASHBOARDS Channel Sales and Profit at Charlesburg Furniture

33. CHANNEL CHOICE AND MANAGEMENT CHANNEL RELATIONSHIPS  Sources of Channel Conflict Sources of Channel Conflict Vertical Conflict Disintermediation Horizontal Conflict

34. CHANNEL CHOICE AND MANAGEMENT CHANNEL RELATIONSHIPS  Channel Captain Channel Captain  Channel Influence Economic Expertise Identification Legitimate Right

35. CHANNEL CHOICE AND MANAGEMENT CHANNEL RELATIONSHIPS  Legal Considerations Dual Distribution Vertical Integration Exclusive Dealing Tying Arrangements Refusal to Deal Resale Restrictions

36. The Clayton Act and Sherman Act place legal restrictions on specific marketing channel strategies and practices