Scribd
Upload
213 views17 pages

Marketing Channels and Supply-Chain Management

Uploaded by

Tala Murad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
213 views17 pages

Marketing Channels and Supply-Chain Management

Uploaded by

Tala Murad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 17

14

Marketing
Channels and
Supply-Chain
Management
Chapter Learning Objectives

1. Describe the nature and functions of


marketing channels
2. Identify the types of marketing channels
3. Explore the concepts of leadership,
cooperation, and conflict in channel
relationships
4. Recognize common strategies for integrating
marketing channels
5. Examine the major levels of marketing
coverage
14–2
Chapter Learning Objectives
(cont’d)

6. Recognize the importance of the role of


physical distribution activities in supply-chain
management and overall marketing
strategies
7. Examine the major physical distribution
functions of order processing, inventory
management, materials handling,
warehousing, and transportation

14–3
Marketing Channels and
Supply-Chain Management
• Marketing Channel
– A group of individuals and organizations directing
products from producers to customers.
• The major role of marketing channels is to make
products available at the right time, at the right place,
and in the right quantities.
• Some marketing channels are direct, meaning that the
product goes directly from the producer to customer.
For example, when a customer orders a laptop from
Dell.

14–4
Marketing Channels Consist of
Intermediaries
• Marketing Intermediary
– An intermediary linking producers to other
intermediaries or to ultimate consumers
through contractual arrangements or through
the purchase and resale of products

Direct Channel
Producer Customer

Indirect Channel
Producer Intermediary Customer

14–5
The Significance of Marketing Channels
1- Marketing Channels Create Utility

• Time Utility
– The product is available when the customer wants it
(newspaper delivery).
• Place Utility
– The product is available in locations where customers wish to
purchase it (convenience stores).
• Possession Utility
- The customer has access to the product to use or to store for
future use (raincoats).
- can occur through ownership or through arrangements that
give the customer the right to use the product
• Form Utility : The product is assembled, prepared or otherwise
refined to suit customer needs.

14–6
2- Marketing Channels Facilitate Exchange
Efficiencies

• Reduce the overall costs of market


exchanges by performing certain
services or functions efficiently.

• Reduce search costs for customers.

• Maintain order in the marketplace

14–7
Efficiency in Exchanges
Provided by an Intermediary

FIGURE 14.1

14–8
Typical Marketing Channels for
Consumer Products

FIGURE 14.2

14–9
Typical Marketing Channels for
Business Products

FIGURE 14.3

14–10
Distribution Intermediaries

• Industrial Distributor
– An independent business that takes title to
business products and carries inventories.

• Manufacturers’ Agent
– An independent businessperson who sells,
on commission, the complementary
products of several producers; does not
takes title to or hold inventories.

14–11
Multiple Marketing Channels
and Channel Alliances
• Dual Distribution
– The use of two or more channels to distribute the
same product to the same target market
• An example of dual distribution is a firm that sells
products through retail outlets and its own mail-order
catalog or website.
• Strategic Channel Alliance
– An agreement whereby the products of one
organization are distributed through the marketing
channels of another

14–12
Selecting Marketing Channels

• Customer Characteristics. Marketing managers must consider


the characteristics of target-market members in channel selection.
the channels appropriate for consumers are different from those
for business customers.
• Product Attributes. The attributes of the product can have a
strong influence on the choice of marketing channels. Marketers of
complex and expensive products such as automobiles likely will
employ short channels.
• Type of Organization. Larger firms may be better able to
negotiate better deals with vendors or other channel members.
Compared with small firms, they may be in better positions to have
more distribution centers, which may reduce delivery times to
customers.

14–13
Selecting Marketing Channels

• Competition. In a highly competitive market, it is important for a


company to keep its costs low so that it can underprice its
competitors if necessary.
• Marketing Environment Forces. Adverse economic conditions
might force an organization to use a low-cost channel, even
though customer satisfaction is reduced. In contrast, a booming
economy might allow a company to choose a channel that
previously had been too costly to consider.
• Characteristics of Intermediaries. When an organization
believes that a current intermediary is not promoting the
organization’s products adequately, it may reconsider its channel
choices.

14–14
Intensity of Market Coverage

• Intensive Distribution
– Uses all available outlets to distribute a
product.
• Appropriate for convenience products with high
replacement rates
• Provides availability and
reduces search time

14–15
Intensity of Market Coverage
(cont’d)

• Selective Distribution
– Uses only some available outlets to distribute
a product
• Appropriate for shopping products and
durable goods with low Tuscaloosa’s Only
replacement rates Authorized Dealer
• Desirable when special effort—
such as customer service—
is important

Copyright © Houghton Mifflin Company. All rights reserved. 14–16


Intensity of Market Coverage
(cont’d)

• Exclusive Distribution
– Uses a single outlet in a fairly large
geographic area to distribute a product
• Appropriate for expensive, high-quality products
purchased infrequently

14–17

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy