2. Components of a channel
[direct/indirect]
Manufacturer/service
provider
Customer
Manufacturer/service
provider
Customer
Wholesaler
Retailer
3. Components of a channel
[direct/indirect]
Manufacturer/service
provider
Customer
Manufacturer/service
provider
Customer
Wholesaler
Retailer
4. How channels function (act)
P/S
Vertical
system (e.g.
EDLP)
P/S
w
R
Horizontal system (e.g. Air
Canada star Alliance)
Customer
segment 1
P/S
VSys. Direct
(Internet,
Phone
Direct mail,
e.g. DELL.
Customer segments
1, 2, 3, etc.
Hybrid
system, e.g.
Gateway, and
Sears.
6. Logistics
(managing the flow of physical goods across the distribution
channel)
•
Aim: fulfill the marketing concept through developing an added value via
effective and efficient flow of goods.
•
Tactics’ aim: Integrated supply chain management (ECR)
–
–
–
–
Inventory management (Bar Coding)
Order processing (EDI)
Warehouse (Distribution centre) management (Just-in-time)
Transportation management (trucks and/or sea)
Supplier/You
ECR
Customer
Retailer