© 2012 McGraw-Hill Ryerson Ltd. Factors in Choosing a Marketing Channel Target Market Coverage Satisfying Buyer Requirements Profitability 0 LO 5.

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Presentation transcript:

© 2012 McGraw-Hill Ryerson Ltd. Factors in Choosing a Marketing Channel Target Market Coverage Satisfying Buyer Requirements Profitability 0 LO 5

© 2012 McGraw-Hill Ryerson Ltd. Target Market Coverage 1 EXCLUSIVE Distribution SELECTIVE Distribution INTENSIVE Distribution One retailer Many retailers LO 5

© 2012 McGraw-Hill Ryerson Ltd. Satisfying Buyer Requirements Information Convenience Variety Pre- and/or Post-Sale Services 2 LO 5

© 2012 McGraw-Hill Ryerson Ltd. Channel Relationships: Conflict and Cooperation 3 Channel Conflict Vertical Conflict (can be Disintermediation) Vertical Conflict (can be Disintermediation) Horizontal Conflict LO 5

© 2012 McGraw-Hill Ryerson Ltd. Logistics and Supply Chain Management Logistics helps get the right amount of the right products to the right place at the right time at the lowest possible cost – Logistics management – Customer requirements 4 LO 5

© 2012 McGraw-Hill Ryerson Ltd. Logistics Management Cost-effective organization of the: flow of raw materials, in-process inventory, finished goods, and related information Point of origin Point of consumption Satisfy customer requirements 5 LO 5