Beruflich Dokumente
Kultur Dokumente
Edition
Title of Book Marketing Channels: A Management View
8th
Author(s) Bert Rosenbloom
Publisher Thomson-Southwestern
Supply Chain Management: Strategy, Planning, and
Title of Book
1. Operation
Imprint details Sunil Chopra, Peter Meindl; (6th edition - 2015), Pearson
Title of Book Marketing Channels, (7th edition - 2013)
2. Coughlan, Anderson, Stern, El-Ansary; Pearson Education
Imprint details
Marketing Channels: Managing Supply Chain Relationships, 3
Title of Book
3. Ed.
Imprint details Pelton, David Strutton, James R Lumpkin, MS Martha Cooper
Books to follow
3
Course Description
4
To know why companies use distribution channels and understand the functions that
these channels perform.
To learn how channel members interact and how they organize to perform the work
of the channel.
Marketing
Channels A set of interdependent
ORGANIZATIONS that ease the
transfer of ownership as
products move from producer to
business user or consumer.
The Marketing Channel Defined
7
External: the marketing channel exists outside the firm (not a part of a firm’s internal
organizational structure.)
SUPPLY CHAIN:
A supply chain consists of upstream and downstream partners
Upstream: from the company is the set of firms that supply the raw materials,
components, parts, information, and expertise needed to create a product or
services.
Down stream: Marketing channels or Distribution channels. Such as wholesalers and
Retailers.
The nature and importance of marketing
channels
10
Merchant
Wholesalers Take Title to Goods
Agents
and Do NOT Take Title to Goods
Brokers
The remaining channels are
• This shows some common business
indirect marketing channels,
distribution channels.
Number of Channel Levels
containing one or more
intermediaries.
• The business marketer can use its own
sales force to sell directly to business
15
customers.
Each layer of marketing intermediaries that
performs some work in bringing the product and its
owner ship closer to the final buyer is a channel
level.
❑ Channel manager:
Anyone in a firm or organization who is involved in marketing channel
decision making.
❑ In practice, the job title involves in channel management may vary depends on
the firms such as ‘business development manager’, ‘director of channel
management’, trade marketing manager’ and etc.
Marketing Channels and
17
Marketing Management Strategy
❑ Marketing management process: a strategic blending of 4 controllable marketing
variables (marketing mix) to meet the demands of customers to which the firm
wishes to appeal in the light of internal and external uncontrollable variables
(marketing environments).
❑ Major tasks: to seek out potential target markets and develop appropriate and
coordinated 4Ps strategies to serve those markets in competitive and dynamic
environment.
Marketing Channels and
18
Marketing Management Strategy
❑ Marketing channel strategy: one of the major strategic areas of marketing
management.
❑ Management must develop and operate its marketing channels in such
way as to support and enhance the other strategic variables of the
marketing mix in order to meet the demand of the firm’s target markets.
Channel Strategy vs. Logistics Management
19
Marketing
mix
Channel Logistics
strategy management
component component
Channel Strategy vs. Logistics Management
20
❑ Channel strategy is much broader and more basic component than logistics
management.
1st 2nd
Channel Logistics
strategy management
component component
Channel Strategy vs. Logistics Management
21
Distribution
strategy
1st 2nd
Channel Logistics
strategy management
component component
Flows in Marketing Channels
22
Distribution
strategy
1st 2nd
Channel Logistics
strategy management
component component
In the context of channel flows concept:
Channel strategy and management involve planning for managing all of the flows
Logistics is concerned almost exclusively with the management of the product flow
Distribution through Intermediaries
25
Distributed Distributed
interorganizationally intraorganizationally
Distribution through Intermediaries
26
❑ Contactual Efficiency
The level of negotiation effort between sellers and buyers relative to
achieving a distribution objective.
• Or it is the relationship between an input (negotiation effort) and an
output (distribution objective).
Example of Contactual Efficiency for
27
Granada Guitar Company
*Retailers Negotiation Effort
(Inputs)
Estimated Dollar
Costs of Inputs
Distribution
Objective (Outputs)
Contactual
Efficiency
1,500 sales visits @ $50 = $75,000 Get 500 music stores Negotiation effort in
1,000 phone calls @ 3 = 3,000 to carry new guitar dollar terms relative to
line. achieving the
10 magazine ads @1,000 = 10,000 distribution objective =
Total $88,000 $88,000
*Wholesalers
Negotiation Effort Estimated Dollar Distribution Contactual Efficiency
(Inputs) Costs of Inputs Objective (Outputs)
100 sales visits @ $50 = $5,000 Get 500 music stores to Negotiation effort in
100 phone calls @ 3 = 300 carry new guitar line. dollar terms relative to
achieving the
20 magazine ads @1,000 = 20,000 distribution objective =
Total √ $25,300 $25,300
Distribution through Intermediaries
28
❑ The use of additional intermediaries will often increase the level of contactual efficiency.
The use of wholesalers has eliminated the need for direct contact with retailers, thereby
greatly reducing the number of contacts needed.
Channel Structure for Consumer Goods
29
Direct Retailer Wholesaler Agent/Broker
Channel Channel Channel Channel
❑ The group of channel members Two-level Three-level Four-level Five-level
to which a set of distribution
tasks has been allocated.
❑ M→C (2-level)
❑ M→R→C (3-level)
❑ M→W→R→C (4-level)
❑ M→A→W→R→C (5-level)
Channel Structure
30
Multi-channel strategy: the firm has chosen to reach its customers through
more than 1 channel.
Polo by Ralph
Manufacturer Lauren Web
site
http://www.ralphlauren.com/
Upscale
Specialty Company-owned
department
apparel retailers stores and outlets
stores
Consumers
Ancillary Structure
32
One of the world’s leading manufacturers of power tools. B&D farm out the
nonnegotiatory tasks to facilitating agencies (the ancillary structure) as the
following:
➢ It uses the common carriers to transport its power tools to industrial
distributors.
➢ It uses the commercial insurance companies to protect against risks
while the products are transit.
➢ It uses independent advertising agencies to promote its products.
Overview of Discussion
34