1 Part Six : Placing Strategy Part Six : Placing Strategy ( Chapter13-Chapter14)

2 Distribution channel (marketing channel) (P.400) A set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user.

3 Distribution channel functions Information （信息） Promotion （促销） Contact （ 联系） Matching （适应） Negotiation （谈判） Physical Distribution （物流） Physical Distribution （物流） Financing （融资） Risk taking （风险分担） (P.402)

4 Marketing flows ( 营销流 ) Physical flow （物流） Physical flow （物流） Ownership flow （商流） Ownership flow （商流） Financial flow （金融流） Financial flow （金融流） Information flow ( 信息流 ) Information flow ( 信息流 ) Promotion flow ( 促销流 ) Promotion flow ( 促销流 )

5 Customer marketing channels （ P.403) Channel 1 Channel 2 Channel 3 Channel 4 M M M M M M M M W W Jobber C C W W C C R R C C C C R R R R

6 Business marketing channels Channel 1 Channel 2 Channel 3 Channel 4 M M M M M M M M R&S IC R&S IC D D D D

7 我国计划经济时期的商品分销渠道 进口商品 生产企业 一级站 二级站 三级站 外贸公司 极少数 大型零售店 极少数 大型零售店 少数大中型 零售店 少数大中型 零售店 一般 零售店 一般 零售店 消费者

8 生产企业 自设销售 系统 自设销售 系统 中间商 交易市场 专卖与 直销 专卖与 直销 零售商店 消费者 我国改革后的商品分销渠道

9 Channel conflict （渠道冲突） (P.404) Disagreement among marketing channel members on goals and roles --- who should do what and for what rewards. Include horizontal conflict and vertical conflict.

10 横向冲突（水平冲突） (Horizontal conflict ) 企业销售部 区域 A 经销商区域 B 经销商 客户

11 纵向冲突（垂直冲突） (Vertical conflict) 企业销售部 区域 A 经销商区域 B 经销商 分销商 客户

12 Vertical Marketing Systems （垂直营销系统） (P.405) conventional vertical (VMS) Manufacturer Wholesaler Retailer Customer Manufacturer wholesaler Retailer

13 Vertical Marketing System(VMS) （垂直营销系统） VMS Corporate VMS Corporate VMS Contractual VMS Contractual VMS Administered VMS Administered VMS Wholesaler- sponsored voluntary chains Wholesaler- sponsored voluntary chains Retailer cooperatives Retailer cooperatives Franchise organizations Franchise organizations

14 连锁经营的主要形式： 正规连锁：（ Corporate VMS ） 同一资本所有；总部直接控制；财务统一核算。 特许连锁：（ Franchise organization ） 契约加盟连锁；统一开展经营；财务分别核算。 自由连锁：（ Voluntary chains ） 自愿连锁协作；实行统购分销；财务分别核算。

15 Difference between the VMS types Corporate VMS Corporate VMS Contractual VMS Contractual VMS Administered VMS Administered VMS Ownership Contract Size and power Combines through Combines through

16 Horizontal Marketing System （水平营销 系统） A channel arrangement in which tow or more companies at one level join together to follow a new marketing opportunity 。 Firm A Firm B Firm C Distribution channel Target markets

17 Hybrid Marketing System （综合营销系统） Multi-channel distribution systems in which a single firm sets up tow or more marketing channels to reach one or more customer segments 。 Retailer Customer segment2 Customer segment2 Business segment1 Business segment1 Business segment2 Business segment2 Producer Distributors Detailer Customer segment1 Customer segment1 Catalogs ， telephone Sales force

18 Channel Design Decisions (P ) Analyzing consumer service needs. Analyzing consumer service needs. Setting the channel objectives and constraints Setting the channel objectives and constraints Identifying major alternatives. Identifying major alternatives. Evaluating the major alternatives. Evaluating the major alternatives. Designing distribution channel. Designing distribution channel.

19 Types of industrial goods intermediaries Company sales force Manufacturer’s agency Industrial distributors Company Customer

20 Number of marketing intermediaries (P.413) Intensive distribution ( 密集分销） As many outlets as possible Intensive distribution ( 密集分销） As many outlets as possible Exclusive distribution ( 独家分销） Limited number of dealer have exclusive right to distribute Exclusive distribution ( 独家分销） Limited number of dealer have exclusive right to distribute Selective distribution ( 选择分销） More than one but fewer than all Selective distribution ( 选择分销） More than one but fewer than all

21 Channel management decisions (P.415) Motivating channel members. Evaluating channel members Selecting channel members.

22 Retailing and Wholesaling Retailing :All activities involved in selling goods or services directly to final consumers for their personal, non-business use. Wholesaling :All activities involved in selling goods and services to those buying for resale or business use.

23 Different Ways to Classify Retail Outlets Amount of service Self-service Limited service Full service Product line sold Specialty store Department store Supermarket Convenience store Superstore Hyper-market Category killer Relative Price Discount store Off-price retailers Catalog showroom Factory outlets Warehouse club Control of Outlets Corporate chain Voluntary chain retailer cooperative Franchise Merchandising Conglomerate （ 集成商） Type of Store Cluster Shopping mall Central business district Regional shopping center Community shopping center Neighborhood shopping center

24 Non-store Retailing Direct Marketing Direct Marketing Automatic Vending Automatic Vending Direct selling Direct selling

25 Major types of Wholesaler Merchant Brokers and Manufacturers’ sales Wholesalers Agent Branches and Office Full-service wholesalers Brokers Sale branch & offices wholesaler merchants Agents Purchasing office industrial distributors Limited-service wholesalers cash-and-carry wholesalers truck wholesalers drop shippers rack jobbers…….

26 Physical distribution(or marketing logistics) P.419 The tasks involved in planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet consumer requirements at a point.

27 Major logistics functions Order processing; Warehousing ; inventory; transportation.

28 Third-party logistics provider (P.425) An independent logistics provider that performs any of all functions required to get their clients’ product to market.