A marketing channel involves individuals and firms that make products or services accessible to consumers. Key factors in choosing marketing channels include target market coverage, buyer requirements, and profitability, which can take forms such as intensive, selective, or exclusive distribution. Additionally, channel conflict can arise at various levels, but it can be constructive and managed through clear communication and conflict resolution strategies.

1. Selecting andManaging Marketing ChannelsAnasIftikhar2815Strategic Marketing Management

2. 1. What is meant by a marketing channel?A: A marketing channel consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users.

3. CHANNEL STRUCTURE AND ORGANIZATIONMarketing Channels for Consumer Goods and Services

4. Direct Channel

5. Indirect ChannelsFIGURE: Common marketing channels for consumer goods and services

6. CHANNEL STRUCTURE AND ORGANIZATIONMarketing Channels for Business Goods and Services

7. Industrial Distributor

8. AgentFIGURE 13-4 Common marketing channels for business goods and services

9. CHANNEL CHOICE AND MANAGEMENTFactors in Choosing a Marketing Channel

10. Provide the Best Target Market Coverage

11. Best Satisfy the Target Market’sBuying Requirements

12. Be the Most ProfitableCHANNEL CHOICE AND MANAGEMENTFactors in Choosing a Marketing Channel

13. Target Market Coverage

14. Intensive Distribution

15. Exclusive Distribution

16. Selective Distribution15 | 9Intensity of Market CoverageIntensive DistributionUsing all available outlets to distribute a product.Convenience products with high replacement ratesProvides availability and reduces search timeAvailability is more important than outlet type

17. 15 | 10Intensity of Market Coverage (cont’d)Selective DistributionUsing only some available outlets to distribute a productShopping products and durable goods with low replacement ratesHigh qualification requirements for intermediaries to distribute, sell, service, and support productsToyota’s Only Authorized Dealer

18. 15 | 11Intensity of Market Coverage (cont’d)Exclusive DistributionUsing a single outlet in a fairly large geographic area to distribute a productExpensive, high-quality products purchased infrequentlyExclusive outlets provide an incentive to sellers in limited marketsDealers carry complete inventory and have trained staff for sales and service

19. CHANNEL CHOICE AND MANAGEMENTFactors in Choosing a Marketing Channel

20. Satisfying Buyer Requirements

21. Lot Size

22. Variety

23. Convenience

24. Services Backup

25. Waiting time

26. Reduction in number of contactsHow a Distributor Reduces theNumber of Channel Transactions1234A. Number of contacts without a distributorM x C = 3 X 3 = 956789= Manufacturer= Customer

27. How a Distributor Reduces theNumber of Channel Transactions1B. Number of contacts with a distributorM x C = 3 + 3 = 64Store2563= Distributor= Manufacturer= Customer

28. WholesalerRetailerConsumerConsumerConventional Distribution Channel vs. Vertical Marketing SystemsVerticalmarketingchannelConventionalmarketingchannelManufacturerManufacturerWholesalerRetailer

29. Channel Conflict What types of conflict arise in channels?What causes channel conflict?What can be done to resolve conflict situations?

30. What is Channel Conflict?In channel distribution, conflict is not negative, rather, some conflict actually strengthen and improves a channel.“Channel conflict arises when the behavior of a channel member is in opposition, to its channel counterpart. It is opponent centered and direct, in which the goal or object sought is controlled by the counterpart.”Coughlan, Anderson,

31. Types of Channel ConflictVertical Channel Conflict - conflict between different levels within the same channel. Horizontal channel conflict - involves conflict between members at the same level within the channel. Multichannel conflict - exists when the manufacturer has established two or more channels that sell to the same market.

32. Horizontal and Vertical Conflict in Marketing Channels

33. Causes of Channel ConflictGoal IncompatibilityUnclear Roles And RightsDifferences In PerceptionIntermediaries’ Great Dependence

34. Managing Channel ConflictAdoption of superordinate goalsExchange persons between channel levelsCooptationDiplomacy, mediation, arbitration for chronic or acute conflict