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Chapter 16: Selecting & Managing Marketing Channels Otterbein College Winter 2000
Objectives ,[object Object],[object Object],[object Object],[object Object]
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
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
Distribution Channel Functions Ordering Payments Communication Transfer Negotiation Financing Risk Taking Physical Distribution Information
Consumer Marketing Channels Wholesaler Jobber Retailer Consumer     Consumer Retailer Consumer  Mfr. 0-level channel Wholesaler Retailer Consumer   Mfr. 2-level channel Mfr. 3-level channel 1-level channel Mfr.
Industrial Marketing Channels Industrial distributors Manufacturer Consumer Manufacturer’s representative Manufacturer’s sales branch
Customers’ Desired Service Levels ,[object Object],[object Object],[object Object],[object Object],[object Object]
Channel Management Decisions Selecting FEEDBACK Motivating Training Evaluating
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

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hello

  • 1. Chapter 16: Selecting & Managing Marketing Channels Otterbein College Winter 2000
  • 2.
  • 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  Mfr. 0-level channel Wholesaler Retailer Consumer   Mfr. 2-level channel Mfr. 3-level channel 1-level channel Mfr.
  • 7. Industrial Marketing Channels Industrial distributors Manufacturer Consumer Manufacturer’s representative Manufacturer’s sales branch
  • 8.
  • 9. Channel Management Decisions Selecting FEEDBACK Motivating Training Evaluating
  • 10. 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