Marketing Channels and Supply Chain Management
TYPES OF DISTRIBUTION CHANNELS <ul><li>A.  Direct Selling </li></ul><ul><li>- direct sales between buyer & seller </li></u...
DUAL DISTRIBUTION <ul><li>Use of 2 or more distribution channels to reach the same target market. </li></ul>
REVERSE CHANNELS <ul><li>Backward movement of goods from user to the producer </li></ul><ul><li>Ex. recycling </li></ul>
Functions of Intermediaries <ul><li>Create: </li></ul><ul><li>TIME UTILITY </li></ul><ul><li>PLACE UTILITY </li></ul><ul><...
Types of Wholesaling Intermediaries <ul><li>1.  Manufacturer-Owned Facilities </li></ul><ul><li>- sales branches & offices...
<ul><li>3.  Retailer-Owned Facilities </li></ul><ul><ul><ul><li>- independent retailers may band together to form buying g...
Factors Affecting Channel Strategy Decisions <ul><li>1.  MARKET FACTORS </li></ul><ul><ul><ul><li>whether product is inten...
<ul><li>3.  PRODUCER FACTORS </li></ul><ul><ul><ul><li>companies w/ adequate financial, managerial & marketing resources a...
Distribution Intensity <ul><li>1.  INTENSIVE DISTRIBUTION </li></ul><ul><li>- used for convenience goods </li></ul><ul><li...
<ul><li>3.  EXCLUSIVE DISTRIBUTION </li></ul><ul><li>- extreme form of selective distribution </li></ul><ul><li>- most oft...
Modes of Transportation <ul><li>Truck </li></ul><ul><li>Railroad </li></ul><ul><li>Pipeline </li></ul><ul><li>Air </li></u...
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Marketing channels ppt@ bec doms

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Marketing channels ppt@ bec doms

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Marketing channels ppt@ bec doms

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