5 Nature & Importance of Marketing Channels Number of Channel LevelsThe number of intermediary levels indicates the length of a marketing channel.Direct ChannelsIndirect ChannelsProducers lose more control and face greater channel complexity as additional channel levels are added.
6 Nature & Importance of Marketing Channels Channel Members Are Connected Via A Variety of FlowsPhysical FlowPayment FlowInformation FlowPromotion FlowFlow of Ownership
7 Channel Behavior and Organization Channel ConflictOccurs when channel members disagree on roles, activities, or rewards.Types of Conflict:Horizontal conflict: occurs among firms at the same channel levelVertical conflict: occurs among firms at different channel levels
10 Channel Behavior and Organization Horizontal Marketing SystemsTwo or more companies at one level join together to follow a new marketing opportunity.Nestle and General Mills work together to market cereal outside of North America
11 Channel Design Decisions Identifying Major AlternativesNumber of marketing intermediariesIntensive distributionSelective distributionExclusive distributionResponsibilities of channel members
12 Number of intermediaries FewManyNumber of OutletsEXCLUSIVESELECTIVEINTENSIVE
13 Public Policy and Distribution Decisions Exclusive distributionOnly certain outlets are allowed to carry a firm’s productsExclusive dealingExclusive territorial agreementsTying agreements