0. Marketing Channels 12

1. How Channel Members Add Value

2. Nature & Importance of Marketing Channels
Key Functions Performed by Channel Members
Information
Promotion
Contact
Matching
Negotiation
Physical Distribution
Financing
Risk taking

3. Consumer Marketing Channels

4. Business Marketing Channels

5. Nature & Importance of Marketing Channels
Number of Channel Levels
The number of intermediary levels indicates the length of a marketing channel.
Direct Channels
Indirect Channels
Producers lose more control and face greater channel complexity as additional channel levels are added.

6. Nature & Importance of Marketing Channels
Channel Members Are Connected Via A Variety of Flows
Physical Flow
Payment Flow
Information Flow
Promotion Flow
Flow of Ownership

7. Channel Behavior and Organization
Channel Conflict
Occurs when channel members disagree on roles, activities, or rewards.
Types of Conflict:
Horizontal conflict: occurs among firms at the same channel level
Vertical conflict: occurs among firms at different channel levels

8. Conventional Versus Vertical Marketing System

9. Channel Behavior and Organization
Vertical Marketing Systems
Corporate VMS
Contractual VMS
Manufacturer-sponsored retailer franchise system
Manufacturer-sponsored wholesaler franchise system
Service-firm-sponsored retailer franchise system
Administered VMS

10. Channel Behavior and Organization
Horizontal Marketing Systems
Two or more companies at one level join together to follow a new marketing opportunity.
Nestle and General Mills work together to market cereal outside of North America

11. Channel Design Decisions
Identifying Major Alternatives
Number of marketing intermediaries
Intensive distribution
Selective distribution
Exclusive distribution
Responsibilities of channel members

12. Number of intermediaries
Few
Many
Number of Outlets
EXCLUSIVE
SELECTIVE
INTENSIVE

13. Public Policy and Distribution Decisions
Exclusive distribution
Only certain outlets are allowed to carry a firm’s products
Exclusive dealing
Exclusive territorial agreements
Tying agreements