chap 15 (desgining & managing value nws)
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Managing ValueTRANSCRIPT
Chapter 15:Chapter 15:Selecting & ManagingSelecting & ManagingMarketing ChannelsMarketing Channels
Chapter 15:Chapter 15:Selecting & ManagingSelecting & ManagingMarketing ChannelsMarketing Channels
Otterbein Otterbein CollegeCollege
Winter 2000Winter 2000
04/18/23 16-2
ObjectivesObjectives
• Work Performed by Marketing Work Performed by Marketing ChannelsChannels
• Channel-Design DecisionsChannel-Design Decisions
• Channel-Management DecisionsChannel-Management Decisions
• Channel DynamicsChannel Dynamics
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How a Distributor Reduces theNumber of Channel Transactions
= Customer= Customer= Manufacturer= Manufacturer
A. Number of contacts A. Number of contacts without a distributorwithout a distributor
M x C = 3 X 3 = 9M x C = 3 X 3 = 9
11
3322
445566
778899
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How a Distributor Reduces theHow a Distributor Reduces theNumber of Channel TransactionsNumber of Channel Transactions
= Distributor= Distributor= Customer= Customer= Manufacturer= Manufacturer
B. Number of contacts B. Number of contacts with a distributorwith a distributorM x C = 3 + 3 = 6M x C = 3 + 3 = 6
Store
11
22
33
44
55
66
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Distribution Channel Functions
OrderingOrdering
PaymentsPayments
CommunicationCommunicationTransferTransfer
NegotiationNegotiation
FinancingFinancingRisk TakingRisk Taking
PhysicalDistribution
PhysicalDistribution
InformationInformation
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Consumer Marketing ChannelsConsumer Marketing Channels
WholesalerWholesaler JobberJobber RetailerRetailer ConsumerConsumer
ConsumerConsumer
RetailerRetailer ConsumerConsumer
Mfr.Mfr.
0-level channel
WholesalerWholesaler RetailerRetailer ConsumerConsumer Mfr.Mfr.
2-level channel
Mfr.Mfr.
3-level channel
1-level channel
Mfr.Mfr.
04/18/23 16-7
Industrialdistributors
Man
ufa
ctu
rer
Co
nsu
mer
Manufacturer’srepresentative
Manufacturer’ssales branch
Industrial Marketing ChannelsIndustrial Marketing Channels
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Customers’ Desired Service LevelsCustomers’ Desired Service Levels
• Lot sizeLot size
• Waiting timeWaiting time
• Spatial convenienceSpatial convenience
• Product varietyProduct variety
• Service backupService backup
04/18/23 16-9
Channel Management DecisionsChannel Management Decisions
SelectingSelecting
FE
ED
BA
CK
MotivatingMotivating
TrainingTraining
EvaluatingEvaluating
04/18/23 16-10
Types of Vertical Marketing SystemsTypes of Vertical Marketing Systems
CorporateCommon Ownership at Different
Levels of the Channel
CorporateCommon Ownership at Different
Levels of the Channel
ContractualContractual Agreement Among
Channel Members
ContractualContractual Agreement Among
Channel Members
AdministeredLeadership is Assumed by One or
a Few Dominant Members
AdministeredLeadership is Assumed by One or
a Few Dominant Members