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C12 Marketing Channels PDF
C12 Marketing Channels PDF
SUPPLY CHAIN
A supply chain is a
network between a
company and its suppliers
to produce and distribute
a specific product, and the
supply chain represents
the steps it takes to get
the product or service to
the customer.
Marketing Channels
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, finances, and expertise
needed to create a product or service.
DOWNSTREAM - such as wholesalers
and retailers, form a vital connection
between the firm and its customers.
NUMBER OF CHANNELS
CHANNEL LEVEL
A layer of intermediaries that performs some work in bringing
the product and its ownership closer to the final buyer.
CHANNEL BEHAVIOR
AND
ORGANIZATION
Conventional
distribution systems
consist of one or more independent producers,
wholesalers, and retailers. Each seeks to maximize
its own profits, and there is little control over the
other members and no formal means for assigning
roles and resolving conflict.
Multichannel distribution
systems
Multichannel Distribution systems (Hybrid marketing
channels) are when a single firm sets up two or more
marketing channels to reach one or more customer
segments
Analyzing
consumer
needs
Setting
channel
objectives
Identifying
major
channel
alternatives
Evaluation
Analyzing
customer needs
designing the marketing channel starts with finding out what target
consumers want from the channel
Do consumers want to buy from nearby locations or are they willing
to travel to more distant and centralized locations? Would
customers rather buy in person, by phone, or online?
Setting channel
objectives
Identifying major
alternatives
Intensive distribution
Candy and toothpaste
Exclusive distribution
Luxury automobiles and prestige clothing
Selective distribution
Television and home appliance
Selecting
channel
members
Managing
channel
members
Motivating
channel
members
Evaluating
channel
members