L8 distribution

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L8 distribution

  1. 1. Distribution<br />March 03, 2010<br />
  2. 2. Channels of Distribution<br />McGraw-Hill/Irwin<br />©2007 by the McGraw-Hill Companies, Inc. All rights reserved.<br />
  3. 3. Marketing channels<br /> Marketing Channels are sets of interdependent organizations involved in the process of making a product available for use or consumption.<br />
  4. 4. Middlemen<br />Middlemen<br />A business firm that<br />renders services directly<br />related to the sale/purchase<br />of a product as it flows through<br />from producer to consumer<br />You can eliminate middlemen, but not the <br />essential distribution activities they <br />perform<br />
  5. 5. Middleman Activities<br />
  6. 6. Middleman Activities<br />
  7. 7. Distribution Channels<br />DISTRIBUTION CHANNELS<br />People and firms involved<br />in the transfer of title to a product<br />as the product moves from producer to <br />ultimate consumer or business user<br />Final <br />Consumer<br />Or<br />Business<br />User<br />Producers<br />Middlemen<br />
  8. 8. Major Channels of Distribution<br />
  9. 9. Vertical Marketing Systems<br />
  10. 10. Choice of Channels: Market<br />Type <br />of <br />Market<br />Number of<br />potential<br />customers<br />Geographic <br />concentration<br />Order<br />size<br />
  11. 11. Choice of Channels: Middleman<br />Services provided by <br />middlemen<br />Availability of desired <br />middlemen<br />Producer’s and <br />middlemen’s policies<br />
  12. 12. Choice of Channels: Company<br />Desire <br />for channel control<br />Services provided <br />by seller<br />Ability <br />of management<br />Financial resources<br />
  13. 13. Intensity of Distribution<br />
  14. 14. Conflict in Channels<br />Retailer<br />Retailer<br />Retailer<br />Retailer<br />Horizontal<br />Middlemen<br /> of the same type<br />Different types <br />of middlemen <br />on the same level<br />
  15. 15. Conflict in Channels<br />Vertical<br />Producer<br />vs.<br />Wholesaler<br />Producer<br />vs.<br />Retailers<br />
  16. 16. Who Controls the Channels?<br />Rewards<br />Expertise<br />Sanctions<br />
  17. 17. Channel as Partnership<br />Cooperation<br />Collaboration<br />Relationship<br />Marketing<br />Coordination<br />
  18. 18. Legal Considerations<br />Exclusive<br />dealing<br />Tying<br />contracts<br />Exclusive<br />territory<br />Refusal<br />to deal<br />

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