Transcript presentation source

Chapter 12 Marketing Channels and
Supply Chain Management
Marketing Channels
Marketing
Channel
A set of interdependent organizations
that ease the transfer of ownership as
products move from producer to
business user or consumer.
Supply
Chain
The connected chain of all the business
entities, both internal and external to the
company, that perform or support the
logistics function.
Marketing Channel Functions
Specialization and
Division of Labor
Channels
Fulfill
Three
Important
Functions
Overcoming
Discrepancies
Providing Contact
Efficiency
Contact Efficiency
Zenith
Sony
RCA
Toshiba
Zenith
Sony
RCA
Toshiba
Circuit City
Channel Intermediaries
Retailer
A channel intermediary that
sells mainly to customers.
Merchant
Wholesaler
An institution that buys goods
from manufacturers, takes title
to goods, stores them,
and resells and ships them.
Agents and
Brokers
Wholesaling intermediaries who
facilitate the sale of a product by
representing channel member.
Channel Functions
Performed by Intermediaries
Contacting/Promotion
Transactional
Functions
Negotiating
Risk Taking
Physically distributing
Logistical
Functions
Storing
Sorting
Facilitating
Function
Researching
Financing
Channels for Consumer Products
Direct
Channel
Retailer
Channel
Wholesaler
Channel
Agent/Broker
Channel
Producer
Producer
Producer
Producer
Agents or
Brokers
Consumers
Wholesalers
Wholesalers
Retailers
Retailers
Retailers
Consumers
Consumers
Consumers
Channels for Business-toBusiness Products
Direct
Channel
Producer
Industrial Agent/Broker Agent/Broker Direct
Distributor
Channel
Channel
Industrial
Channel
Producer
Producer
Producer
Agents or
Brokers
Agents or
Brokers
Industrial
Distributor
Industrial
Distributor
Industrial
User
Industrial
User
Producer
Industrial
User
Industrial
User
Government
Buyer
Alternative Channel
Arrangements
Multiple Channels
Different
Channels
May be Used
Nontraditional
Channels
Adaptive Channels
Strategic Channel
Alliances
Supply Chain Management
Focus on Innovative Solutions
Competitive with focus on
Customer Satisfaction
Results
of
Supply Chain
Management
Synchronized Flow
Customer Value
Role of Supply Chain
Management
Role of
Supply Chain
Management
Communicator of
customer demand from
point of sale to supplier
Physical flow process
that engineers the
movement of goods
Channel Strategy Decisions
Issues that Influence
Channel Strategy
Factors
Affecting
Channel
Choice
Levels of
Distribution
Intensity
Market Factors
Intensive Distribution
Product Factors
Selective Distribution
Producer Factors
Exclusive Distribution
Levels of Distribution Intensity
Intensity Level
Objective
Number of
Intermediaries
Intensive
Achieve mass market
selling.
Convenience goods.
Many
Selective
Work with selected
intermediaries.
Shopping and some
specialty goods.
Several
Exclusive
Work with single
intermediary. Specialty
goods and industrial
equipment.
One
Managing Channel Relationships
Channel Power
Channel Control
Social
Dimensions
of Channels
Channel Leadership
Channel Conflict
Channel Partnering
Channel Power,
Control, and Leadership
Channel
Power
A channel member’s capacity to
control or influence the behavior
of other channel members
Channel
Control
A situation that occurs when one
marketing channel member
intentionally affects another
member’s behavior.
Channel
Leader
A member of a marketing channel
that exercises authority/power over
the activities of other members.