Managing Distribution Channels Chapter 14
Managing Distribution Channels Chapter 14
Learning objectives Typical Channels of Distribution Vertical Marketing Systems Distribution functions Managing the channel
Learning Objectives Typical Channels of Distribution Vertical Marketing Systems Distribution Functions Managing the Channel
How a distributor reduces the Number of channel transactions A Number of contacts 567 ithout a distributor MXCE3X3=9 8 Manufacturer Customer
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. Num ber of contacts with a distributor Mxc=3+3=6 Store 5 Manufacturer Customer TmmT=Distributor
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
Datri ution hanellinetione Information Transfer Communication Payments Negotiation Physical Distribution Ordering Risk Taking Financing
Distribution Channel Functions Ordering Payments Communication Transfer Negotiation Financing Risk Taking Physical Distribution Information
Distribution channels definition
Distribution Channels Definition
Multiple channels Dual distribution The use of more than one channel to bring the same product (or similar products under different brand names )to several customer segments Strategic Channel Alliance An agreement in which a marketer uses another marketers channel to reach customers Reverse channels Channels that bring products from customers to marketers
Multiple Channels Dual Distribution The use of more than one channel to bring the same product (or similar products under different brand names) to several customer segments Strategic Channel Alliance An agreement in which a marketer uses another marketer’s channel to reach customers Reverse Channels Channels that bring products from customers to marketers
Channel arrangements Conventional channels Vertical Marketing SystemS(VMS)-a professionally planned and managed network of channel relationships designed for optimal efficiency and effectiveness
Channel Arrangements Conventional channels Vertical Marketing Systems (VMS) -- a professionally planned and managed network of channel relationships designed for optimal efficiency and effectiveness
Three Types of VMS orporate Contractual Administered
Three Types of VMS Corporate - Contractual - Administered -
Channel arrangement 工立七七1e Conventional Control Administered Contractual Corporate Most con七o
Channel Arrangement Conventional Administered Contractual Corporate Little Control Most Control