Chapter #12 17 slides

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Chapter #12 17 slides

  1. 1. Chapter 12 - slide 1 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve Marketing Channels Delivering Customer Value
  2. 2. Chapter 12 - slide 2 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Channel Behavior and Organization Conventional distribution systems consist of one or more independent producers, wholesalers, and retailers. Each seeks to maximize its own profits, and there is little control over the other members and no formal means for assigning roles and resolving conflict. Conventional Distributions Systems
  3. 3. Chapter 12 - slide 3 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Channel Behavior and Organization Vertical marketing systems (VMS) provide channel leadership and consist of producers, wholesalers, and retailers acting as a unified system and consist of: • Corporate marketing systems • Contractual marketing systems • Administered marketing systems Vertical Marketing Systems
  4. 4. Chapter 12 - slide 4 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Channel Behavior and Organization Corporate vertical marketing system integrates successive stages of production and distribution under single ownership Vertical Marketing Systems
  5. 5. Chapter 12 - slide 5 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Channel Behavior and Organization Contractual vertical marketing system consists of independent firms at different levels of production and distribution who join together through contracts to obtain more economies or sales impact than each could achieve alone. The most common form is the franchise organization. Vertical Marketing Systems
  6. 6. Chapter 12 - slide 6 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Channel Behavior and Organization Franchise organization links several stages in the production distribution process – Manufacturer-sponsored retailer franchise system – Manufacturer-sponsored wholesaler franchise system – Service firm-sponsored retailer franchise system Vertical Marketing Systems
  7. 7. Chapter 12 - slide 7 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Channel Behavior and Organization Administered vertical marketing system has a few dominant channel members without common ownership. Leadership comes from size and power. Vertical Marketing Systems
  8. 8. Chapter 12 - slide 8 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Channel Behavior and Organization Horizontal marketing systems are when two or more companies at one level join together to follow a new marketing opportunity. Companies combine financial, production, or marketing resources to accomplish more than any one company could alone. Horizontal Marketing Systems
  9. 9. Chapter 12 - slide 9 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Channel Behavior and Organization Multichannel Distribution systems (Hybrid marketing channels) are when a single firm sets up two or more marketing channels to reach one or more customer segments Multichannel Distribution Systems Hybrid Marketing Channels
  10. 10. Chapter 12 - slide 10 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Channel Behavior and Organization Disintermediation occurs when product or service producers cut out intermediaries and go directly to final buyers, or when radically new types of channel intermediaries displace traditional ones Changing Channel Organization
  11. 11. Chapter 12 - slide 11 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Channel Design Decisions
  12. 12. Chapter 12 - slide 12 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Channel Design Decisions • Targeted levels of customer service • What segments to serve • Best channels to use • Minimizing the cost of meeting customer service requirements Setting Channel Objectives
  13. 13. Chapter 12 - slide 13 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Channel Design Decisions Identifying Major Alternatives
  14. 14. Chapter 12 - slide 14 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Channel Management Decisions
  15. 15. Chapter 12 - slide 15 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Public Policy and Distribution Decisions Exclusive distribution is when the seller allows only certain outlets to carry its products Exclusive dealing is when the seller requires that the sellers not handle competitor’s products Exclusive territorial agreements is when producer or seller limit territory Tying agreements are agreements where the dealer must take most or all of the line
  16. 16. Chapter 12 - slide 16 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Marketing Logistics and Supply Chain Management Marketing logistics (physical distribution) involves planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet consumer requirements at a profit Nature and Importance of Marketing Logistics
  17. 17. Chapter 12 - slide 17 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Marketing Logistics and Supply Chain Management Supply chain management is the process of managing upstream and downstream value- added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers Nature and Importance of Marketing Logistics

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