Chapter Questions

1
Chapter Questions

• What is a marketing channel system and value
  network?
• What work do marketing channels perform?
• What decisions do companies face in managing
  their channels?
• How should companies integrate channels and
  manage channel conflict?
• What is the future for e-commerce?

2
Marketing Channels
Sets of interdependent organizations involved in
the process of making a product or service
available for use or consumption.
3
Examples of Channels

• Dell (DTC)
• Avon
• Canada Post
• Grainger (auto parts network)
• Coca-cola (bottlers)
• McDonalds restaurants (franchisee)

4
Increasing Efficiency
5
Consumer Marketing Channels
6
Identifying Channel Alternatives
Types of intermediaries
Number of intermediaries
Terms and responsibilities
7
Channel Service Outputs
Lot size
Waiting/delivery time
Spatial convenience
Product variety
Service backup
8
Wholesaling Functions

• Selling and promoting
• Buying and assortment building
• Bulk breaking
• Warehousing

• Transportation
• Financing
• Risk bearing
• Market information
• Management services and counseling

9
Major Wholesaler Types
Merchant
Full-service
Limited-service
Brokers and agents
Manufacturers
Specialized
10
Wholesalers Marketing Decisions
Target market
Product assortment
Price
Promotion
Place
11
Number of Intermediaries
Exclusive
Selective
Intensive
12
Market Logistics Planning

• Deciding on the companys value proposition to
  its customers
• Deciding on the best channel design and network
  strategy
• Developing operational excellence
• Implementing the solution

13
Transportation Factors

• Speed
• Frequency
• Dependability
• Capability
• Availability
• Traceability
• Cost