© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin MANAGING MARKETING CHANNELS AND WHOLESALING
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
MANAGING MARKETING
CHANNELS AND WHOLESALING
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Defining Marketing Channels of Distribution
You can eliminate the middleman but you You can eliminate the middleman but you can not eliminate its functionscan not eliminate its functions
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Marketing intermediariesMarketing intermediaries
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• Value Created by Intermediaries
NATURE AND IMPORTANCE OF MARKETING CHANNELS
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How intermediaries minimize transactionsHow intermediaries minimize transactions
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Marketing channel functions performed by Marketing channel functions performed by intermediariesintermediaries
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• Marketing Channels for Consumer Goods and Services
Direct channel Indirect channels
CHANNEL STRUCTURE AND ORGANIZATION
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Common marketing channels for consumer marketingCommon marketing channels for consumer marketing
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Common marketing channels for business marketingCommon marketing channels for business marketing
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Representative electronic marketing channelsRepresentative electronic marketing channels
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• Direct Marketing Channels
• Multiple Channels and Strategic Alliances
Dual distribution Strategic channel alliances
CHANNEL STRUCTURE AND ORGANIZATION
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Nestlé and General Mills Food industry’s first strategic alliance
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• A Closer Look at Channel Intermediaries• Merchant Wholesalers
• Agents and Brokers Manufacturer’s agents Selling agents Brokers
• Manufacturer’s Branches and Offices
CHANNEL STRUCTURE AND ORGANIZATION
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Vertical Marketing Systems and Channel Partnerships
CHANNEL STRUCTURE AND ORGANIZATION
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Types of vertical marketing systemsTypes of vertical marketing systems
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Vertical Marketing Systems and Channel Partnerships • Corporate Systems
• Contractual Systems Franchising
• Administered Systems
• Channel Partnerships
CHANNEL STRUCTURE AND ORGANIZATION
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Factors Affecting Channel Choice and Management• Environmental Factors
• Consumer Factors
• Product Factors
• Company Factors
CHANNEL CHOICEAND MANAGEMENT
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Channel Design Considerations• Target Market Coverage
Intensive distribution Exclusive distribution Selective distribution
• Satisfying Buyer Requirements
• Profitability
• Global Dimensions of Marketing Channels
CHANNEL CHOICEAND MANAGEMENT
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Channel Relationships: Conflict, Cooperation, and Law• Conflict in Marketing Channels
Disintermediation
• Cooperation in Marketing Channels Channel captain
• Legal Considerations
CHANNEL CHOICEAND MANAGEMENT
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Channel strategies and practices affected by legal Channel strategies and practices affected by legal restrictionsrestrictions