Marketing Channels Chapter 13. Determine 2-3 different ways of transportation for the following 24 air compressors, each of 36’’x36’’x60’’, 400 p. each.
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Slide 1
Marketing Channels Chapter 13
Slide 2
Determine 2-3 different ways of transportation for the
following 24 air compressors, each of 36x36x60, 400 p. each to
Dallas, TX. Two crates of rare orchids, 12x24x48, each weighing 27
pounds to NYC 6 classic cars purchased by an eccentric, wealthy
customer in UK. The cars are not currently running.
Slide 3
Vocabulary Marketing (Supply/Distribution)Channel: group of
individuals and organizations that directs the flow of products
from producers to customers. Supply chain management: starts before
physical distribution, covering procurement of inputs, conversion
into finished products, and product movement to final
destinations
Slide 4
o ? retail stores o wholesalers o telemarketing o mail order
catalogs o web sites "Push" : getting channels to your product
"Pull" : getting consumers to ...your product by name Firm Channel
members Customer
Slide 5
Why would a manufacturer want to use a wholesaler or a
retailer?
Slide 6
Functions performed by intermediaries Transactional (promote,
negotiate, take risks ) Logistical Facilitating (researching and
financing)
Slide 7
Logistical : Physical Distribution Gets It to Customers
Logistics or Physical Distribution Coordinating the flow of
information among channel members
Channel Intermediaries Retailers Merchant Wholesalers Merchant
Wholesalers Agents and Brokers Agents and Brokers Take Title to
Goods Do NOT Take Title to Goods
Slide 11
Types of Marketing Channels Channels for Consumer Products
Direct Channel TRADITIONAL DUAL DISTRIBUTION & REVERSE
CHANNELS
Slide 12
Exploring Multiple Channel Options: Benefits of Different
Channels
Slide 13
Types of Marketing Channels Channels for Industrial
Products
Slide 14
CHANNEL STRATEGY DECISIONS 1.Selection of a Marketing Channel
2.Intensity of Distribution Distribution 3.Management of
Relationships Relationships
Slide 15
1.Selection of a Marketing Channel Market factors: Consumer vs
Business markets (large vs. small quant, service) Geographic
location (concentrated, dispersed) Product factors: Complex,
customized, expensive Products life cycle/delicacy (e.g. mature,
perishable) Producer factors: Big/small Image protection
Slide 16
2. Intensity of Market coverage Selective..
Slide 17
Red Bull is sold at convenience stores, supermarkets and
warehouse clubs. Red Bull has _________ distribution A. selective
B. exclusive C. intermediate D. intensive E. limited
Slide 18
3. Management of relationship
Slide 19
Retailer Distributor Retailer Horizontal
Slide 20
"Captive Channels" : channels owned by firm "Non-Captive
Channels" : channels not owned by firm "When do retailers have
"channel power"? firm's product is not well differentiated from
competitors threat of backward integration Firm Channels
Customer
Slide 21
Channel conflict examples Firm: Your retail prices are too
high, and are driving down demand Retailer: With your wholesale
prices, its the only way we can make money Firm: You carry too many
lines, our product isn't even noticed on shelves Retailer:
Customers come first. BTW, why don't you prune your line. Firm
Channels Customer
Slide 22
"free riding" by internet channel customers who use more than
one channel get confused return policies origin of merchandise
different prices Firm Website Customer Retail store