1. Chapter 16 Marketing Channels

2. In this chapter…
Marketing channels of distribution and why intermediaries are needed.
Traditional marketing channels, electronic marketing channels, and vertical marketing systems.
Factors that marketing executives consider when selecting and managing a marketing channel.

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

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

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

6. Direct Channel Indirect Channel
CHANNEL STRUCTURE & ORGANIZATION MARKETING CHANNELS FOR CONSUMER PRODUCTS AND SERVICES
Direct Channel
Indirect Channel
Retailers
WholesalersRetailers
AgentsWholesalersRetailers

7. Common marketing channels for consumer products and services by the kind and number of intermediaries

8. Direct Channel Indirect Channel
CHANNEL STRUCTURE & ORGANIZATION MARKETING CHANNELS FOR BUSINESS PRODUCTS AND SERVICES
Direct Channel
Indirect Channel
Industrial Distributor
Agents
AgentsIndustrial Distributors

9. Common marketing channels for business products and services by the kind and number of intermediaries

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

11. Consumer electronic marketing channels are similar to those for consumer products and services

12. Strategic Channel Alliances
CHANNEL STRUCTURE & ORGANIZATION DUAL DISTRIBUTION & STRATEGIC CHANNEL ALLIANCES
Dual Distribution
Honey Nut Cherrios Ad
Strategic Channel Alliances

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

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

15. CHANNEL STRUCTURE & ORGANIZATION VERICAL MARKETING SYSTEMS
Contractual Systems
Franchising
Manufacturer-Sponsored Retail Franchises
Manufacturer-Sponsored Wholesale Franchises
Service-Sponsored Retail Franchises
Service-Sponsored Franchises
Administered Systems

16. CHANNEL CHOICE AND MANAGEMENT CHANNEL CHOICE CONSIDERATIONS
Target Market Coverage (Density)
Intensive Distribution
Exclusive Distribution
Gucci
Selective Distribution

17. CHANNEL CHOICE AND MANAGEMENT CHANNEL CHOICE CONSIDERATIONS
Buyer Requirements
Information
Convenience
Variety
Pre- or Post-Sale Service
Profitability

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

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