1. Wholesaling Chapter 13

2. Marketing Channels What is a marketing channel? What is a marketing channel? Intermediaries Intermediaries Transactional role Transactional role Logistical role Logistical role Facilitation role Facilitation role

3. Marketing Channels- B2C Schwan’s Consumer General Motors Consumer Retailer Mansar Products Mars Wholesaler Agent

4. Marketing Channels- B2B IBM Industrial User Caterpillar Industrial User Industrial Distributor Industrial User Harkman Electric Stake Fastener Agent

5. Other Channel Terms Direct Marketing Channels Direct Marketing Channels L.L. Bean L.L. Bean Dual Distribution Dual Distribution Hallmark Hallmark Strategic Channel Alliances Strategic Channel Alliances Kraft & Starbucks Kraft & Starbucks Source: www.hallmark.com

6. Channel Intermediaries Merchant Wholesalers Merchant Wholesalers Full-service Full-service General-merchandise General-merchandise Specialty-merchandise Specialty-merchandise Limited-service Limited-service Rack jobbers Rack jobbers Cash & carry Cash & carry Drop shippers Drop shippers Truck jobbers Truck jobbers

7. Agents & Brokers Characteristics Characteristics Manufacturer’s Agents Manufacturer’s Agents Selling Agents Selling Agents Brokers Brokers Source: http://www.optimumscouting.com

8. Channel Partnerships Vertical Marketing Systems Vertical Marketing Systems Corporate Corporate Forward integration: Sherwin-Williams Forward integration: Sherwin-Williams Backward integration: Kroger Backward integration: Kroger Contractual Contractual Wholesaler-sponsored Voluntary Chains Wholesaler-sponsored Voluntary Chains Retailer-sponsored Cooperatives Retailer-sponsored Cooperatives Franchising Franchising Administered Administered Administered Vertical Marketing Systems Administered Vertical Marketing Systems

9. Factors Determining Channels Choice Environmental Factors Environmental Factors Consumer Factors Consumer Factors Product Factors Product Factors Company Factors Company Factors

10. Considerations Target Market Coverage Target Market Coverage Buying Requirements Buying Requirements Profitability Profitability

11. Considerations Target Market Coverage Target Market Coverage Intensive distribution Intensive distribution Exclusive distribution Exclusive distribution Selective distribution Selective distribution

12. Considerations Buyer Requirements Buyer Requirements Information Information Convenience Convenience Proximity Proximity 8-second rule 8-second rule Variety Variety Breadth and depth of products offered by intermediary Breadth and depth of products offered by intermediary Attendant Services Attendant Services

13. Considerations Profitability Profitability How are margins divided? How are margins divided?

14. Types of Conflict Vertical conflict Vertical conflict Disintermediation Disintermediation Profit margin distribution Profit margin distribution Attention given to products Attention given to products Horizontal conflict Horizontal conflict Infringement upon market area Infringement upon market area Different retailers selling same brand Different retailers selling same brand

15. Cooperation Channel Captain Channel Captain Economic influence Economic influence Expertise influence Expertise influence Identification influence Identification influence Legitimate influence Legitimate influence

16. Legal Issues Dual distribution Dual distribution Too much power? Too much power? Exclusive Dealing Exclusive Dealing Tying Arrangements Tying Arrangements