Objectives Work Performed by Marketing Channels Channel-Design Decisions Channel-Management Decisions Channel Dynamics @2000 Prentice Hall
©2000 Prentice Hall Objectives Work Performed by Marketing Channels Channel-Design Decisions Channel-Management Decisions Channel Dynamics
How a distributor reduces the Number of channel transactions ia A Number of contacts without a distributor 6 MXCE3X3=9 9 C: = Manufacturer r Customer @2000 Prentice Hall
©2000 Prentice Hall How a Distributor Reduces the Number of Channel Transactions = Manufacturer = Customer A. Number of contacts without a distributor M x C = 3 X 3 = 9 1 3 2 4 5 6 7 8 9
How a Distributor reduces the Number of channel transactions 4-B. Number of contacts with a distributor MxC=3+3=6 _5。产 6 解= Manufacturer帝= Customer 国■■■■ LLTTT= Distributor @2000 Prentice Hall
©2000 Prentice Hall How a Distributor Reduces the Number of Channel Transactions = Manufacturer = Customer = Distributor B. Number of contacts with a distributor M x C = 3 + 3 = 6 Store 1 2 3 4 5 6
Distribution Channel Functions Information Transfer Communication Payments Negotiation Physical Distribution Ordering Risk Taking Financing @2000 Prentice Hall
©2000 Prentice Hall Distribution Channel Functions Ordering Payments Communication Transfer Negotiation Financing Risk Taking Physical Distribution Information
Customers' Desired Service Levels Lot size Waiting time Spatial convenience Product variety Service backup @2000 Prentice Hall
©2000 Prentice Hall Customers’ Desired Service Levels Lot size Waiting time Spatial convenience Product variety Service backup
Channel Management Decisions Selecting Training Motivating O<mouuL Evaluating @2000 Prentice Hall
©2000 Prentice Hall Channel Management Decisions Selecting FEEDBACK Motivating Training Evaluating
Types of Vertical Marketing Systems Corporate Common Ownership at Different Levels of the channel Administered Leadership is Assumed by one or a Few Dominant Members Contractual Contractual Agreement Among Channel members @2000 Prentice Hall
©2000 Prentice Hall Types of Vertical Marketing Systems Corporate Common Ownership at Different Levels of the Channel Contractual Contractual Agreement Among Channel Members Administered Leadership is Assumed by One or a Few Dominant Members
Conventional Distribution Channel vs Vertical Marketing Systems Conventional Vertical marketing marketing channel channel Manufacturer Manufacturer Wholesaler Retailer Retailer Consumer Consumer @2000 Prentice Hall
©2000 Prentice Hall Conventional Distribution Channel vs. Vertical Marketing Systems Vertical marketing channel Manufacturer Retailer Conventional marketing channel Consumer Manufacturer Consumer Retailer Wholesaler Wholesaler
Causes of Channel Legal Ethical Issues in Conflict Channel Relations Incompatibility Exclusive dealing Difference in Perception Exclusive Territories Dependence Tying Agreements Dealers Rights @2000 Prentice Hall
©2000 Prentice Hall Causes of Channel Conflict Incompatibility Difference in Perception Dependence Legal & Ethical Issues in Channel Relations Exclusive Dealing Exclusive Territories Tying Agreements Dealers’ Rights
