Chapter 12: Marketing Channels
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Transcript of Chapter 12: Marketing Channels
![Page 1: Chapter 12: Marketing Channels](https://reader030.fdocuments.us/reader030/viewer/2022020716/5681305c550346895d961dac/html5/thumbnails/1.jpg)
Brooke Hodges, Minh Phan, Sam Valencia, Scott Williams
Chapter 12: Marketing Channels Retrieved from http://techmarketingbuffalo.com/walmart-logo-
history-download/
![Page 2: Chapter 12: Marketing Channels](https://reader030.fdocuments.us/reader030/viewer/2022020716/5681305c550346895d961dac/html5/thumbnails/2.jpg)
Topic Outline
• Supply Chains
• Marketing Channels
• Channel Behavior and Organization
• Channel Functions
• Channel Design Decisions
• Channel Management Decisions
• Public Policy and Distribution Decisions
• Marketing Logistics and Supply Chain Management
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Supply Chains
A chain of resources and activities that create customer value
Upstream
Raw Materials, Suppliers, Components, Parts, Information, Finances.
Downstream
Marketing channels, Distribution channels, Retailers, Wholesalers
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Marketing Channels
All groups that contribute to creating a product or service and bringing it to market.
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Types of Marketing Channels
Direct Marketing Channel
Indirect Marketing Channel
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Channel Behavior and Characteristics
• Customer/Supplier Partnerships
• Interdependent
• Specialized Retrieved from http://massrealestatelawblog.com/2011/08/22/court-upholds-oral-handshake-deal-in-land-swap/
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Channel Behavior and Organization
• Vertical Marketing Systems (VMS)
• Conventional Marketing Systems (CMS)
• Horizontal Marketing Systems
Producer
Wholesaler
Retailer
Consumer Consumer
RetailerWholesaler
Producer
CMS VMS
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Channel Behavior and Organization
• Multichannel distribution system
• Disintermediation
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Walmart's Distribution Channel Model
Manufacturers/ Suppliers of
Products sold by Walmart
Walmart Distribution
Centers
Walmart Stores
Supplier
Manufacturers of Walmart's store
brands
Supplier
Supplier
Supplier
Customers
Supplier
Supplier
Manufacturers/ Suppliers of Products sold by Walmart
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Channel Design Decisions
• Marketing Channel Design
o Analyzing Consumer Needs
o Setting Channel Objectives
o Identifying Major Alternatives
o Evaluating the Major Alternatives
Retrieved from http://www.etlsolutions.com/seven-essential-planning-components-of-a-data-migration-project/
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Choosing Number of Marketing IntermediariesThree Distribution Strategies
• Intensive Distribution
• Exclusive Distribution
• Selective Distribution
Retrieved from http://designbuddy.com/how-self-employed-graphic-designers-can-avoid-burnout
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Channel Management Decisions
Selecting
• Years in business
• Other lines carried
• Location
• Growth & profit
• Cooperativeness
• Reputation
Selecting, managing, & motivating individual channel members and evaluating their performance over time.
Managing &
Motivating
• Partner relationship
• High-tech partnership
Evaluating
• Regularly check
• Cooperation
• Services
• Needs of partners
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Public Policy & Distribution Decisions
• Exclusive Distribution: seller allows only certain outlets to carry its products
• Exclusive Dealings: seller requires that these dealers not handle competitor’s products
• Exclusive Territorial Agreements: producer or seller limit dealings in a given area
• Trying Agreements: dealer must sell all or most of the product line
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Logistics and Supply Chain Management
• Better service and Lower prices
• Targeted level of service at the least cost
• Warehousing, Inventory management, Transportation, Logistics information management
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Group Reflection
• Well Planned Marketing Channel
• Create Partnerships
• Efficient Distributiono Lower Priceso Profitable
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You’ve got Questions???
...We’ve got Answers
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References
Kotler, P., & Armstrong, G. (2014). Principles of Marketing (15th ed., pp. 349-353). Upper Saddle River, NJ: Pearson Education Inc.
MWPVL International Inc., (2014). The Wal Mart Distribution Center Network in the United States. Leadership in Supply Chain and Logistics Consulting. Retrieved on March 25, 2014 from
http://www.mwpvl.com/html/walmart.html
(2014). Walmart Logistics. Retrieved from http://corporate.walmart.com/our-story/our-business/logistics