Www.mhhe.com/fourps Place and Development of Channel Systems For use only with Perreault/Cannon/McCarthy or Perreault/McCarthy texts. © 2008 McGraw-Hill.

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Presentation transcript:

Place and Development of Channel Systems For use only with Perreault/Cannon/McCarthy or Perreault/McCarthy texts. © 2008 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin CHAPTER TEN

Marketing Strategy Planning Process

CH 12: Retailers, Wholesalers & Their Strategy Planning Place objectives Direct vs. indirect Channel specialists Channel relationships CH 11: Distribution Customer Service & Logistics CH 10: Place and Development of Channel Systems Market exposure Marketing Strategy Planning for Place (Exhibit 10-1)

Key Issues Place Decisions Are Guided by “Ideal” Place Objectives Product Classes Suggest Objectives Product Classes Suggest Objectives Place System Is Not Automatic Place System Is Not Automatic Decisions Have Long-run Effects

Internet Makes Direct Distribution Easier Greater Control Lower Cost Direct Contact with Customer Needs Quicker Response or Change in Marketing Mix Greater Control Lower Cost Direct Contact with Customer Needs Quicker Response or Change in Marketing Mix Suitable Middlemen Not Available Channel System May Be Direct or Indirect SomeReasons For Choosing Direct Channels

Role of Channel Captain Conflict Handling Whole-Channel Product- Market Commitment Choosing the Type of Relationship Channel Relationship Must Be Managed Key Issues In Channel Management

Producers or Middlemen May Be Channel Captains (Exhibit 10-2)

Vertical Marketing Systems Focus on Final Customers Fairly good to good Contracts McDonald’s Complete One company ownership Florsheim Some to good Economic power and leadership General Electric Characteristics Type of channel Little or none None Typical “inde- pendents” Amount of cooperation Traditional Vertical marketing systems AdministeredContractualCorporate Control maintained by Examples

Intensive Selective Intensive Selective The Best Channel System Should Achieve Ideal Market Exposure = number of outlets Exclusive Market Exposure Strategies

Channel Systems Can Be Complex (Exhibit 10-4)