This document discusses marketing channels and intermediaries. It defines marketing channels as the path taken by a good or service from producer to consumer. Intermediaries perform important transactional, logistical, and facilitating functions within marketing channels. The document outlines different types of traditional and electronic marketing channels for both consumer and business goods. It also describes various vertical marketing systems, factors that influence channel choice, and the importance of logistics and supply chain management in integrating activities across firms in a marketing channel.

1. Managing Marketing
Channels &
Wholesaling
Marketing Management 1
Chapter 15

2. Learning
Objectives
Explain what is meant by a marketing channel of distribution and
why intermediaries are needed.
Distinguish among traditional marketing channels, electronic
marketing channels, and different types of vertical marketing
systems.
Describe the factors and considerations that affect a company’s
choice and management of a marketing channel.
Explain what supply chain and logistics management are and how
they relate to marketing strategy
1
2
3
4

3. FIGURE 15-1 The variety of terms used
for marketing intermediaries that vary in
specificity and use in consumer and business
markets

4. Nature and Importance of Marketing
Channels
What is are Marketing Channels & Intermediaries?
 Marketing Channel
 Functions Performed by Intermediaries
• Transactional Function
• Logistical Function
• Facilitating Function
 Consumers benefits

5. FIGURE 15-2 Marketing functions performed
by intermediaries.

6. Channel Structure & Organization
For Consumer Goods & Services
 Direct Channel
 Indirect Channel
• Retailers
• WholesalersRetailers
• AgentsWholesalersRetailers

7. FIGURE 15-3 Common marketing channels
for consumer offerings by the kind and
number of intermediaries

8. Channel Structure & Organization
For Business Goods & Services
 Direct Channel
 Indirect Channel
• Industrial Distributor
• Agents
• AgentsIndustrial Distributors

9. FIGURE 15-4 Common marketing channels
for business offerings by the kind and
number of intermediaries

10. Channel Structure & Organization
Electronic, Direct & Multichannel Marketing
1-10
 Electronic Marketing Channels
 Direct Marketing Channels
 Multichannel Marketing Channels

11. FIGURE 15-5 Representative consumer
electronic marketing channels

12. Channel Structure & Organisation
Dual Distribution & Strategic Channel Alliances
 Dual Distribution
 Strategic Channel Alliances

13. Channel Structure & Organization
Channel Intermediaries
 Merchant Wholesalers
• Full-Service Wholesalers
 General Merchandise
(Full-Line) Wholesalers
 Specialty Merchandise
(Limited-Line) Wholesalers

14. Channel Structure & Organization
Channel Intermediaries
 Merchant Wholesalers
• Limited-Service Wholesalers
 Rack Jobbers
 Cash and Carry Wholesalers
 Drop Shippers/Desk Jobbers
 Truck Jobbers

15. Channel Structure & Organisation
Channel Intermediaries
 Agents and Brokers
• Manufacturer’s Agents
• Selling Agents
• Brokers
• Branch Offices
• Sales Offices
 Manufacturers

16. FIGURE 15-6 Types of Vertical Marketing
Systems

17. Channel Structure & Organization
Vertical Marketing Systems
 Vertical Marketing Systems
• Forward Integration
 Corporate Systems
• Backward Integration
• Wholesaler-Sponsored Voluntary Chains
 Contractual Systems
• Retailer-Sponsored Cooperatives

18. Channel Structure & Organization
Vertical Marketing Systems
 Contractual Systems
• Franchising
 Manufacturer-Sponsored Retail Franchise
Systems
 Manufacturer-Sponsored Wholesale Systems
 Service-Sponsored Retail Franchise Systems
 Service-Sponsored Franchise Systems

19. Channel Structure & Organisation
Vertical Marketing Systems
 Administered Systems
 Channel Partnership

20. Channel Choice & Management
Factors affecting choice
 Environmental Factors
 Consumer Factors
 Product Factors
 Company Factors

21. Channel Choice & Management
Choice considerations
 Target Market Coverage
• Intensive Distribution
• Exclusive Distribution
• Selective Distribution

22. Channel Choice & Management
Channel Choice Considerations
 Satisfying Buyer Requirements
• Information
• Convenience
• Variety
• Attendant Services

23. EC House
What Buyer Requirements Have Been Satisfied?

24. GOING ONLINE
Visit an Apple Store to See
What All the Excitement is About

25. Channel Choice & Management
Channel Choice Considerations
 Profitability
• Margins Earned
• Channel Costs
 Global Dimensions of
Marketing Channels

26. Using Marketing Dashboards
Channel Sales & Profit at Home Furniture

27. Logistics and Supply Chain
Management
 The right products at the right place at the right
time at the lowest possible cost
 The supply chain:
 Suppliers
 Manufacturers
 Wholesailers & retailers
 Supply chain management integrates activities
and information across firms

28. FIGURE 15-8 Relating logistics management
and supply chain management to supplier
networks and marketing channels

29. FIGURE 15-9 The automative supply chain
includes thousands of firms that provide the
functional components, software codes, and
parts in a typical car

30. Supply Chain Management & Marketing
Strategy
1. Understand the Customer
2. Understand the Supply chain
3. Harmonize the supply chain with the
marketing strategy

31. Supply Chain Management & Marketing
Strategy
 IBM: Total Solution
 Walmart: Efficient
 Dell: Responsive

32. Concepts of Logistics Management
 Total Logistics costs
 Customer service concept
 Time
 Dependability
 Communication
 Convenience

33. FIGURE 15-10 Supply chain managers
balance total logistics cost factors against
customer service factors

34. Reverse Logistics
• Recyclable Materials
• Returns
• Reworks
• Reusable materials

35. END OF SLIDE