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MANAGING MARKETING

CHANNELS AND WHOLESALING

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• Defining Marketing Channels of Distribution

You can eliminate the middleman but you You can eliminate the middleman but you can not eliminate its functionscan not eliminate its functions

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Marketing intermediariesMarketing intermediaries

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• Value Created by Intermediaries

NATURE AND IMPORTANCE OF MARKETING CHANNELS

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How intermediaries minimize transactionsHow intermediaries minimize transactions

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Marketing channel functions performed by Marketing channel functions performed by intermediariesintermediaries

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• Marketing Channels for Consumer Goods and Services

Direct channel Indirect channels

CHANNEL STRUCTURE AND ORGANIZATION

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Common marketing channels for consumer marketingCommon marketing channels for consumer marketing

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Common marketing channels for business marketingCommon marketing channels for business marketing

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Representative electronic marketing channelsRepresentative electronic marketing channels

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• Direct Marketing Channels

• Multiple Channels and Strategic Alliances

Dual distribution Strategic channel alliances

CHANNEL STRUCTURE AND ORGANIZATION

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Nestlé and General Mills Food industry’s first strategic alliance

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• A Closer Look at Channel Intermediaries• Merchant Wholesalers

• Agents and Brokers Manufacturer’s agents Selling agents Brokers

• Manufacturer’s Branches and Offices

CHANNEL STRUCTURE AND ORGANIZATION

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• Vertical Marketing Systems and Channel Partnerships

CHANNEL STRUCTURE AND ORGANIZATION

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Types of vertical marketing systemsTypes of vertical marketing systems

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• Vertical Marketing Systems and Channel Partnerships • Corporate Systems

• Contractual Systems Franchising

• Administered Systems

• Channel Partnerships

CHANNEL STRUCTURE AND ORGANIZATION

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• Factors Affecting Channel Choice and Management• Environmental Factors

• Consumer Factors

• Product Factors

• Company Factors

CHANNEL CHOICEAND MANAGEMENT

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• Channel Design Considerations• Target Market Coverage

Intensive distribution Exclusive distribution Selective distribution

• Satisfying Buyer Requirements

• Profitability

• Global Dimensions of Marketing Channels

CHANNEL CHOICEAND MANAGEMENT

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• Channel Relationships: Conflict, Cooperation, and Law• Conflict in Marketing Channels

Disintermediation

• Cooperation in Marketing Channels Channel captain

• Legal Considerations

CHANNEL CHOICEAND MANAGEMENT

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Channel strategies and practices affected by legal Channel strategies and practices affected by legal restrictionsrestrictions