Marketing Channels Fall 2006. You gotta love trees…

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Presentation transcript:

Marketing Channels Fall 2006

You gotta love trees…

Value Delivery Network  Company, suppliers, distributors and customers who partner to improve system performance  A demand chain orientation: start with the needs of customers

Marketing Channel  Interdependent organizations involved in the process of making a product available for use

Think Efficiency and Effectiveness

Add a Distributor

And What Needs to be Done?  Information –Research –Promotion  Matching and Assorting  Physical Distribution and Storage  Financing  Risk Taking

It is Not Always Easy: Channel Conflict  Vertical Conflict  Horizontal Conflict

Vertical Marketing Systems  Corporate Channel –Vertical Integration: wholly owned and tapered  Contractual: Coordinated  Administered

Channel Considerations  Types of Intermediaries –Company Sales Force, Manufacturer’s Agents, and Industrial Distributors  Number of Intermediaries –Intensive distribution: Snickers –Exclusive distribution: Rolls –Selective distribution: Acura

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