Brooke Hodges, Minh Phan, Sam Valencia, Scott Williams

Chapter 12: Marketing Channels Retrieved from http://techmarketingbuffalo.com/walmart-logo-

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Topic Outline

• Supply Chains

• Marketing Channels

• Channel Behavior and Organization

• Channel Functions

• Channel Design Decisions

• Channel Management Decisions

• Public Policy and Distribution Decisions

• Marketing Logistics and Supply Chain Management

Supply Chains

A chain of resources and activities that create customer value

Upstream

Raw Materials, Suppliers, Components, Parts, Information, Finances.

Downstream

Marketing channels, Distribution channels, Retailers, Wholesalers

Marketing Channels

All groups that contribute to creating a product or service and bringing it to market.

Types of Marketing Channels

Direct Marketing Channel

Indirect Marketing Channel

Channel Behavior and Characteristics

• Customer/Supplier Partnerships

• Interdependent

• Specialized Retrieved from http://massrealestatelawblog.com/2011/08/22/court-upholds-oral-handshake-deal-in-land-swap/

Channel Behavior and Organization

• Vertical Marketing Systems (VMS)

• Conventional Marketing Systems (CMS)

• Horizontal Marketing Systems

Producer

Wholesaler

Retailer

Consumer Consumer

RetailerWholesaler

Producer

CMS VMS

Channel Behavior and Organization

• Multichannel distribution system

• Disintermediation

Walmart's Distribution Channel Model

Manufacturers/ Suppliers of

Products sold by Walmart

Walmart Distribution

Centers

Walmart Stores

Supplier

Manufacturers of Walmart's store

brands

Supplier

Supplier

Supplier

Customers

Supplier

Supplier

Manufacturers/ Suppliers of Products sold by Walmart

Channel Design Decisions

• Marketing Channel Design

o Analyzing Consumer Needs

o Setting Channel Objectives

o Identifying Major Alternatives

o Evaluating the Major Alternatives

Retrieved from http://www.etlsolutions.com/seven-essential-planning-components-of-a-data-migration-project/

Choosing Number of Marketing IntermediariesThree Distribution Strategies

• Intensive Distribution

• Exclusive Distribution

• Selective Distribution

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Channel Management Decisions

Selecting

• Years in business

• Other lines carried

• Location

• Growth & profit

• Cooperativeness

• Reputation

Selecting, managing, & motivating individual channel members and evaluating their performance over time.

Managing &

Motivating

• Partner relationship

• High-tech partnership

Evaluating

• Regularly check

• Cooperation

• Services

• Needs of partners

Public Policy & Distribution Decisions

• Exclusive Distribution: seller allows only certain outlets to carry its products

• Exclusive Dealings: seller requires that these dealers not handle competitor’s products

• Exclusive Territorial Agreements: producer or seller limit dealings in a given area

• Trying Agreements: dealer must sell all or most of the product line

Logistics and Supply Chain Management

• Better service and Lower prices

• Targeted level of service at the least cost

• Warehousing, Inventory management, Transportation, Logistics information management

Group Reflection

• Well Planned Marketing Channel

• Create Partnerships

• Efficient Distributiono Lower Priceso Profitable

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References

Kotler, P., & Armstrong, G. (2014). Principles of Marketing (15th ed., pp. 349-353). Upper Saddle River, NJ: Pearson Education Inc.

MWPVL International Inc., (2014). The Wal Mart Distribution Center Network in the United States. Leadership in Supply Chain and Logistics Consulting. Retrieved on March 25, 2014 from

http://www.mwpvl.com/html/walmart.html

(2014). Walmart Logistics. Retrieved from http://corporate.walmart.com/our-story/our-business/logistics