MANAGING

MARKETING
CHANNELS AND
WHOLESALING

2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

You can eliminate the middleman but you

can not eliminate its functions

Defining Marketing Channels of

Distribution

2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Marketing intermediaries

2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

NATURE AND IMPORTANCE

OF MARKETING CHANNELS

Value Created by Intermediaries

2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

How intermediaries minimize transactions

2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Marketing channel functions performed by

intermediaries

2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

CHANNEL STRUCTURE
AND ORGANIZATION

Marketing Channels for Consumer

Goods and Services
Direct channel
Indirect channels

2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Common marketing channels for consumer marketing

2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Common marketing channels for business marketing

2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Representative electronic marketing channels

2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

CHANNEL STRUCTURE
AND ORGANIZATION

Direct Marketing Channels

Multiple Channels and Strategic
Alliances

Dual distribution
Strategic channel alliances

2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Nestl and General Mills

Food industrys first strategic alliance

2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

CHANNEL STRUCTURE
AND ORGANIZATION

A Closer Look at Channel Intermediaries

Merchant Wholesalers
Agents and Brokers
Manufacturers agents
Selling agents
Brokers

Manufacturers Branches and Offices

2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

CHANNEL STRUCTURE
AND ORGANIZATION

Vertical Marketing Systems and

Channel Partnerships

2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Types of vertical marketing systems

2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

CHANNEL STRUCTURE
AND ORGANIZATION

Vertical Marketing Systems and Channel

Partnerships

Corporate Systems
Contractual Systems
Franchising

Administered Systems
Channel Partnerships
2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

CHANNEL CHOICE
AND MANAGEMENT

Factors Affecting Channel Choice and

Management

Environmental Factors
Consumer Factors
Product Factors
Company Factors
2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

CHANNEL CHOICE
AND MANAGEMENT

Channel Design Considerations

Target Market Coverage
Intensive distribution
Exclusive distribution
Selective distribution

Satisfying Buyer Requirements

Profitability

Global Dimensions of Marketing

Channels

2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

CHANNEL CHOICE
AND MANAGEMENT

Channel Relationships:

Conflict,

Cooperation, and Law

Conflict in Marketing Channels

Disintermediation

Cooperation in Marketing Channels

Channel captain

Legal Considerations
2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Channel strategies and practices affected by legal

restrictions

2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin