Marketing channels ppt@ bec doms
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  • 1. Marketing Channels and Supply Chain Management
  • 2. TYPES OF DISTRIBUTION CHANNELS
    • A. Direct Selling
    • - direct sales between buyer & seller
    • Ex. Mary Kay, Tupperware, Baskets
    • B. Marketing Intermediaries: Figure 13.2
  • 3. DUAL DISTRIBUTION
    • Use of 2 or more distribution channels to reach the same target market.
  • 4. REVERSE CHANNELS
    • Backward movement of goods from user to the producer
    • Ex. recycling
  • 5. Functions of Intermediaries
    • Create:
    • TIME UTILITY
    • PLACE UTILITY
    • OWNERSHIP UTILITY
  • 6. Types of Wholesaling Intermediaries
    • 1. Manufacturer-Owned Facilities
    • - sales branches & offices
    • 2. Independent Wholesaling Intermediaries
        • - account for majority of wholesaling establishments & wholesale sales in U.S.
        • Merchant wholesalers: take title to goods they handle
      • Agents & Brokers : may or may not take possession of goods but they never take title
  • 7.
    • 3. Retailer-Owned Facilities
        • - independent retailers may band together to form buying groups to get cost savings thru quantity purchases
  • 8. Factors Affecting Channel Strategy Decisions
    • 1. MARKET FACTORS
        • whether product is intended for the consumer (long) or the business (short) market
    • 2. PRODUCT FACTORS
        • perishable or complex products(short channels)
        • generally the more standardized the product, the longer the channel
  • 9.
    • 3. PRODUCER FACTORS
        • companies w/ adequate financial, managerial & marketing resources are less compelled to utilize intermediaries in marketing their products
    • 4. COMPETITIVE FACTORS
        • inadequate promotion of products may require manufacturers to develop unique distribution channels
  • 10. Distribution Intensity
    • 1. INTENSIVE DISTRIBUTION
    • - used for convenience goods
    • Ex. Gum, soda, candy, cigarettes
    • 2. SELECTIVE DISTRIBUTION
        • - a firm chooses only a limited number of retailers in a market area to handle its product line
    • Ex. Nike
  • 11.
    • 3. EXCLUSIVE DISTRIBUTION
    • - extreme form of selective distribution
    • - most often used for specialty goods
    • Suboptimization
  • 12. Modes of Transportation
    • Truck
    • Railroad
    • Pipeline
    • Air
    • Water Carriers