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|ombines successive stages of production

and distribution under single ownership.

|onsists of either a manufacturer

who has integrated vertically to
reach the consumer, or a retailer
who has integrated vertically to
create a self-supply network.
p         
 
h|oordinates successive stages of
production and distribution through the
size and power of one of the members.
hBuilding a planned, professionally
managed, vertical marketing system
hDepartment within the company called
distributor-relations planning.
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h›ndependent firms at different levels of production and
distribution integrating their programs on a contractual
basis
hThey are of three types:
 holesaler-sponsored voluntary chains

etailer cooperatives
ranchise organizations
hThe traditional system is the manufacturer-sponsored
retailer franchise
hA new system is the service-firm-sponsored retailer
franchise
    
 

   
The ability of a given
participant in the distribution
channel to create a go-to-
market strategy that
simultaneously addresses
customers¶ best interests
and drives profits for all
partners.
  |
 
    

h?o longer between independent

business units but between whole
systems of centrally programmed
networks (corporate, administered,
and contractual)
h To achieve the best cost economies
and customer response.
 
 
    
Two or more unrelated companies put together resources or
programs to exploit an emerging marketing opportunity.
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hOulti-channel marketing occurs when a single firm uses
two or more marketing channels to reach one or more
customer segments.

h An integrated marketing channel system is one in which

the strategies and tactics of selling through one channel
reflect the strategies and tactics of selling through other
channels.
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hBy adding more channels, companies can gain three
important benefits:
V ›ncreased market coverage
V Lower channel costs
VOore customized selling

hThe gains from adding new channels come at a price:

V ?ew channels typically introduce conflict and control
problems.
VTwo or more channels may end up competing for the same
customers.
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h|ompanies need to think through their channel architecture. The
must determine which channels should perform which functions.

hOoriarty and Ooran propose using the hybrid grid to plan the
channel architecture.
VThe grid shows several marketing channels (rows).
VSeveral demand-generation tasks (columns)
VThe grid illustrates why using only one channel is not efficient.
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h|hannels should be designed to work together

effectively.