The document discusses managing marketing channels and place in the marketing mix. It defines marketing channels as the series of individuals and firms that participate in moving goods from producer to final user. Intermediaries like retailers and wholesalers are discussed as well as how they add value through improving exchange efficiency and eliminating discrepancies. The document also covers decisions around direct versus indirect channels, target market coverage, and types of vertical marketing systems.

1. Chapter 15 Managing Marketing Channels

2. I. What is the place element of the marketing mix? Place is concerned with making products available in the right quantities and locations when customers want them.

3. II. What is a marketing channel ? Any series of firms or individuals who participate in the flow of goods and services from producer to final user

4. III. Intermediaries A. Types Retailer Wholesaler Agent B. Value Created by Intermediaries Improve exchange efficiency Perform marketing functions Eliminate assortment / quantity discrepancies

5. Slide 15-8 FIGURE 15-A Types of Intermediaries

6. Slide 15-10 FIGURE 15-2 How intermediaries improve exchange efficiencies

7. IV. Channel Structure Decisions

8. A. Direct Vs. Indirect Channels Direct channel- a marketing channel that does not use intermediaries to distribute the product. Why sell directly? Indirect channel – a marketing channel where intermediaries are used to help distribute the product. Why sell indirectly?

9. Slide 15-15 FIGURE 15-4 Examples of direct and indirect channels

10. B. Target Market Coverage Intensive distribution What is it? When is it used? Selective distribution What is it? When is it used? Exclusive distribution What is it? When is it used?

11. C. Dual Distribution Occurs when an organization distributes its product through two or more different types of marketing channels which typically compete for the same target market. May cause conflict with channel intermediaries

12. V. Vertical Marketing Systems What is a VMS? A marketing channel that a single channel member coordinates Types of VMS Corporate Contractual Administered

13. VI. Factors to Consider When Selecting Specific Intermediaries The producer will want to use intermediaries who: Reach their target market Have a good reputation Handle distribution functions efficiently Order large quantities Pay invoices quickly Display and promote merchandise well Have a good location and professional salespeople