MANAGING MARKETING CHANNELS AND SUPPLY CHAINS

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CHAPTER
MANAGING MARKETING CHANNELS AND SUPPLY CHAINS
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What is a Marketing Channel?
A set of interdependent organizations that ease
the transfer of ownership as products move from
producer to business user or consumer.
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Names for Marketing Intermediaries
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JOB OF INTERMEMDIARIES
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SPECIALIZATION AND DIVISION OF LABOR

• Provides efficiency and cost savings
• Attains economies of scale
• Aids producers who lack resources to market
  directly
• Builds good relationships with customers

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OVERCOMING DISCREPANCIES
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OVERCOMING DISCREPANCIES
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Contact Efficiency
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CHANNEL INTERMEMDIARIES
Take Title to Goods
Take Title to Goods
Do NOT Take Title to Goods
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CHANNELS FOR CONSUMER PRODUCTS
DIRECT RESELLER WHOLESALER
AGENT
Producer
Producer
Producer
Producer
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What makes you choose a particular channel?
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MARKET FACTORS
Market FactorsThat Affect ChannelChoices
Geographic Location
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PRODUCT FACTORS
Product FactorsThat Affect ChannelChoices
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PRODUCER FACTORS
Producer FactorsThat Affect ChannelChoices
Producer Resources
Number of Product Lines
Desire for Channel Control
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LEVELS OF DISTRIBUTION INTENSITY
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LEVELS OF DISTRIBUTION INTENSITY
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TRANSPORTATION FACTORS
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Advantages and disadvantages of five modes of
transportation
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VERTICAL INTEGRATION
The degree to which a firm owns the stages of
its supply chain management from materials
supply- to manufacture -to distribution- to sale.
Backward an Forward Integration buy the step
before or after you in the chain
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HORIZONTAL INTEGRATION
When a company takes over another in the same
business, thus eliminating a competitor and
achieving a bigger market share
For example - Whole Foods buys Wild Oats to gain
a bigger share of the health food
market Problem is monopoly creation, so govts
watch these sales closely
Mitsubishi Dealership
Mazda Dealership
Nissan Dealership
Toyota Dealership
Honda Dealership