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Marketing Channels

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Transcript

  • 1. Chapter 16 Selecting and Managing Marketing Channels Marketing Management Tenth Edition Philip Kotler
  • 2. Objectives
    • Work Performed by Marketing Channels
    • Channel-Design Decisions
    • Channel-Management Decisions
    • Channel Dynamics
  • 3. How a Distributor Reduces the Number of Channel Transactions = Customer = Manufacturer A. Number of contacts without a distributor M x C = 3 X 3 = 9 1 3 2 4 5 6 7 8 9
  • 4. How a Distributor Reduces the Number of Channel Transactions = Distributor = Customer = Manufacturer B. Number of contacts with a distributor M x C = 3 + 3 = 6 Store 1 2 3 4 5 6
  • 5. Distribution Channel Functions Ordering Payments Communication Transfer Negotiation Financing Risk Taking Physical Distribution Information
  • 6. Consumer Marketing Channels Wholesaler Jobber Retailer Consumer     Consumer Retailer Consumer  Manufacturer 0-level channel Wholesaler Retailer Consumer   Mfg 2-level channel Mfg 3-level channel 1-level channel Manufacturer
  • 7. Industrial Marketing Channels Industrial distributors Manufacturer Consumer Manufacturer’s representative Manufacturer’s sales branch
  • 8. Customers’ Desired Service Levels
    • Lot size
    • Waiting time
    • Spatial convenience
    • Product variety
    • Service backup
  • 9. Break-Even Cost Chart Selling costs (dollars) Level of sales (dollars) Company sales force Manufacturer’s sales agency S B
  • 10. Channel Management Decisions Selecting FEEDBACK Motivating Training Evaluating
  • 11. Types of Vertical Marketing Systems Corporate Common Ownership at Different Levels of the Channel Contractual Contractual Agreement Among Channel Members Administered Leadership is Assumed by One or a Few Dominant Members
  • 12. Conventional Distribution Channel vs. Vertical Marketing Systems Vertical marketing channel Manufacturer Retailer Conventional marketing channel Manufacturer Wholesaler Consumer Consumer Retailer Wholesaler
  • 13. Causes of Channel Conflict
    • Incompatibility
    • Difference in Perception
    • Dependence
  • 14. Legal & Ethical Issues in Channel Relations
    • Exclusive Dealing
    • Exclusive Territories
    • Tying Agreements
    • Dealers’ Rights
  • 15. Review
    • Work Performed by Marketing Channels
    • Channel-Design Decisions
    • Channel-Management Decisions
    • Channel Dynamics

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