Distributing Products Week 10
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How channel members add value www.slideshare.com/natriumz
The best channel system should achieve ideal market exposure Intensive Selective Market Exposure Strategies Intensive Exclusive Selective = number of outlets www.slideshare.com/natriumz
Marketing channel www.slideshare.com/natriumz
Number of channel members www.slideshare.com/natriumz
Multichannel Distribution Channel Distribution Systems Multichannel Distribution Channel www.slideshare.com/natriumz
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Marketing System Vertical Marketing System Multichannel Producers, wholesalers, and retailers act as unified system Corporate VMS Contractual VMS Administered VMS Marketing System Multichannel Distribution System (Hybrid Marketing System A single firm sets up 2 or more marketing channels to reach 1 or more customer levels Horizontal Marketing System 2 or more companies at one level join together to follow a new marketing opportunities www.slideshare.com/natriumz
Vertical Marketing Systems Focus on Final Customers Characteristics Type of channel Little or none None Typical “independents” Amount of cooperation Traditional Vertical marketing systems Administered Contractual Corporate Control maintained by Examples Some to good Economic power and leadership General Electric Fairly good to good Contracts McDonald’s Complete One company ownership Florsheim www.slideshare.com/natriumz
Types of Vertical Marketing Systems CONTROL Corporate VMS Common ownership at different levels of the channel High Contractual VMS Contractual agreements among channel members Administered VMS Leadership is assumed by one or a few dominant members Low www.slideshare.com/natriumz
Channel systems can be complex www.slideshare.com/natriumz
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Wholesalers www.slideshare.com/natriumz
Wholesaler Marketing Decisions www.slideshare.com/natriumz
Types of Wholesalers www.slideshare.com/natriumz
Major Types of Wholesalers www.slideshare.com/natriumz
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Retailer marketing Decisions www.slideshare.com/natriumz
Major store retailer types www.slideshare.com/natriumz
Major types of retail organizations www.slideshare.com/natriumz
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Store Atmosphere www.slideshare.com/natriumz
Shopping Center www.slideshare.com/natriumz
Logistic and supply chain management www.slideshare.com/natriumz
Nature and importance of marketing logistics www.slideshare.com/natriumz
Physical Distribution Gets It to Customers Logistics or Physical Distribution www.slideshare.com/natriumz
Water Transportation www.slideshare.com/natriumz
Airfreight Is Expensive but Fast and Growing www.slideshare.com/natriumz
Physical Distribution Customer Service www.slideshare.com/natriumz
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Which transporting alternative is the best ? www.slideshare.com/natriumz
A cost comparison of alternative systems www.slideshare.com/natriumz
The transporting function adds value to a Marketing Strategy www.slideshare.com/natriumz
Specialized Storing Facilities May Be Required www.slideshare.com/natriumz
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Innovative marketing channels www.slideshare.com/natriumz
Channel specialists may reduce discrepancies and separations The UK’s leading supermarket chain wanted to provide the freshest food possible in the most environmentally friendly way. Who did Tesco turn to for help? www.slideshare.com/natriumz
Limiting Market Exposure Retailer Producer Vertical Arrangements May Be Legal Wholesaler Retailer Retailer Retailer Horizontal Arrangements Are Illegal www.slideshare.com/natriumz
Channel Conflict When Tupperware decided to sell its familiar containers at retail through Target stores, Tupperware avoided conflicts with its army of in-home sales consultants by inviting them into the stores to demonstrate the products. www.slideshare.com/natriumz
Vertical Marketing Systems www.slideshare.com/natriumz
Exclusive Distribution www.slideshare.com/natriumz
International Distribution Channels www.slideshare.com/natriumz
Retailing & Wholesaling www.slideshare.com/natriumz
Producers or Middlemen may be channel captains www.slideshare.com/natriumz
Logistics functions www.slideshare.com/natriumz
Trade-Offs of Costs, Service and Sales www.slideshare.com/natriumz
Total Inventory Cost Cost of inventory becoming obsolate Cost of storage facilities Handling costs Cost of damage while in inventory Cost of risk Cost of inventory becoming obsolate Interest expence & opportunity cost www.slideshare.com/natriumz
www.gantibaju.com www.slideshare.com/natriumz
Samsung Galaxy Pad www.slideshare.com/natriumz
www.gramediashop.com www.slideshare.com/natriumz
Tunes Hotels www.slideshare.com/natriumz
Kidzania www.slideshare.com/natriumz
Kompas.com www.slideshare.com/natriumz