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Marketing Channels

This article explores the intricacies of marketing channels and how companies, suppliers, distributors, and customers collaborate to enhance performance through value delivery networks. It emphasizes a demand chain orientation driven by customer needs and examines the roles of various intermediaries, including sales forces and distributors. Challenges such as channel conflict are discussed, along with strategies for vertical marketing systems. Furthermore, the differentiation in distribution types—intensive, exclusive, and selective—is illustrated using examples of well-known products.

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Marketing Channels

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Presentation Transcript

  1. Marketing Channels Fall 2006

  2. You gotta love trees…

  3. Value Delivery Network • Company, suppliers, distributors and customers who partner to improve system performance • A demand chain orientation: start with the needs of customers

  4. Marketing Channel • Interdependent organizations involved in the process of making a product available for use

  5. Think Efficiency and Effectiveness

  6. Add a Distributor

  7. And What Needs to be Done? • Information • Research • Promotion • Matching and Assorting • Physical Distribution and Storage • Financing • Risk Taking

  8. It is Not Always Easy: Channel Conflict • Vertical Conflict • Horizontal Conflict

  9. Vertical Marketing Systems • Corporate Channel • Vertical Integration: wholly owned and tapered • Contractual: Coordinated • Administered

  10. Channel Considerations • Types of Intermediaries • Company Sales Force, Manufacturer’s Agents, and Industrial Distributors • Number of Intermediaries • Intensive distribution: Snickers • Exclusive distribution: Rolls • Selective distribution: Acura

  11. Video

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