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    14-1Copyright 2000 by Houghton Mifflin Company. All rights reserved.

    Chapter 14

    Marketing Channelsand Supply Chain

    Management

    Text by

    William M. Pride

    O. C. Ferrell

    Multimedia Slides by

    Milton M. PressleyUniv. of New Orleans

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    14-2Copyright 2000 by Houghton Mifflin Company. All rights reserved.

    Objectives To Describe the Nature and Functions of Marketing

    Channels

    To Explain How Supply Chain Management Can

    Facilitate Distribution for the Benefit of All Channel

    Members, Especially Customers

    To Identify the Types of Marketing Channels

    To Examine the Major Levels of Marketing Coverage

    To Explore the Concepts of Leadership, Cooperation,

    and Conflict in Channel Relationships To Specify How Channel Integration Can Improve

    Channel Efficiency

    To Examine the Legal Issues Affecting Channel

    Management

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    14-3Copyright 2000 by Houghton Mifflin Company. All rights reserved.

    The Nature of

    Marketing Channels Marketing Channel

    Marketing Intermediary

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    14-4Copyright 2000 by Houghton Mifflin Company. All rights reserved.

    Marketing Information Analyze sales data and other information

    in databases and information systems.Perform or commission marketing research.

    Marketing Management Establish strategic plans for developing

    customer relationships and organizational

    productivity.

    Facilitating Exchanges Choose product assortments that match the

    needs of customers.Cooperate with channel members to

    develop partnerships.

    Promotion Set promotional objectives.

    Coordinate advertising, personal selling,

    sales promotion, publicity, and packaging.

    Price Establish pricing policies and terms of

    sales.

    Physical Distribution Manage transportation, warehousing,

    materials handling, inventory control, and

    communication.

    Marketing Channel Activities Performed by IntermediariesMarketing Channel Activities Performed by Intermediaries

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    14-6Copyright 2000 by Houghton Mifflin Company. All rights reserved.

    TIMETIME

    PLACEPLACE

    Marketing Channels Create Utility

    The Nature of

    Marketing Channels

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    14-7Copyright 2000 by Houghton Mifflin Company. All rights reserved.

    TIMETIME

    PLACEPLACE

    POSSESSIONPOSSESSION

    Marketing Channels Create Utility

    The Nature of

    Marketing Channels

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    14-9Copyright 2000 by Houghton Mifflin Company. All rights reserved.

    Susans

    Stereo

    Superstore

    12 Contacts

    Pioneer

    JVC

    Magnavox

    Sony

    Rock Fan

    Pop Fan

    Classical Fan

    "Dr. P"

    Country Fan

    New Age Fan

    Rap Fan

    Country Fan

    Reggae Fan

    The Nature of

    Marketing Channels Marketing Channels Facilitate

    Exchange Efficiencies

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    14-10Copyright 2000 by Houghton Mifflin Company. All rights reserved.

    Marketing Channels Form

    a Supply Chain

    Supply Chain Management

    The Nature of

    Marketing Channels

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    14-11Copyright 2000 by Houghton Mifflin Company. All rights reserved.

    Planning Organizational and Systemwide

    Coordination of Marketing Channel

    Partnerships to Meet Customers

    Product Needs

    Sourcing Purchasing of Necessary Resources,

    Goods, and Services from Suppliers

    to Support All Supply Chain Members

    Facilitating Delivery All Activities Designed to Move the

    Product Through the MarketingChannel to the End User

    Relationship Building All Marketing Activities Related to

    Selling, Service, and the Development

    of Long-Term Customer Relationships

    The Nature of

    Marketing ChannelsKey Tasks in Supply Chain Management

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    14-12Copyright 2000 by Houghton Mifflin Company. All rights reserved.

    Whol s l rs t il rs ons rsroduc rnts or

    rok rs

    roduc r

    Whol s l rs t il rs

    onsumers

    roducer et ilers onsumers

    roducer onsumers

    Types of Marketing ChannelsChannels for Consumer Products

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    14-13Copyright 2000 by Houghton Mifflin Company. All rights reserved.

    Types of Marketing ChannelsChannels for Industrial Products

    AgentsIndustrial

    Distributor

    Business/

    Organizational

    Buyer

    Producer

    Industrial

    Distributor

    Business/

    OrganizationalBuyer

    Producer

    Producer

    Business/

    Organizational

    Buyer

    Agents

    Business/

    Organizational

    Buyer

    Producer

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    14-14Copyright 2000 by Houghton Mifflin Company. All rights reserved.

    Types of

    Marketing Channels

    Multiple Marketing Channelsand Channel Alliances

    Dual Distribution

    Strategic Channel Alliance

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    14-15Copyright 2000 by Houghton Mifflin Company. All rights reserved.

    Intensity of Market

    Coverage

    Intensive

    Distribution

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    14-16Copyright 2000 by Houghton Mifflin Company. All rights reserved.

    Intensity of Market

    Coverage

    IntensiveIntensive

    DistributionDistribution

    Selective

    Distribution

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    14-17Copyright 2000 by Houghton Mifflin Company. All rights reserved.

    Intensity of Market

    Coverage

    ExclusiveExclusive

    DistributionDistribution

    IntensiveIntensive

    DistributionDistribution

    SelectiveSelective

    DistributionDistribution

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    14-18Copyright 2000 by Houghton Mifflin Company. All rights reserved.

    Channel:

    Leadership

    Supply Chain

    Management

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    14-19Copyright 2000 by Houghton Mifflin Company. All rights reserved.

    Channel:

    LeadershipLeadership

    CooperationCooperation

    Supply Chain

    Management

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    14-20Copyright 2000 by Houghton Mifflin Company. All rights reserved.

    Channel:

    LeadershipLeadership

    CooperationCooperation

    ConflictConflict

    Supply Chain

    Management

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    14-22Copyright 2000 by Houghton Mifflin Company. All rights reserved.

    Vertical Channel

    Integration Vertical Marketing

    Systems (VMSs)

    Horizontal ChannelIntegration

    Supply ChainManagement

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    14-23Copyright 2000 by Houghton Mifflin Company. All rights reserved.

    Legal Issues

    Dual Distribution

    Restricted Sales

    Territories Tying Agreements

    Exclusive Dealing

    Refusal to Deal

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    14-24Copyright 2000 by Houghton Mifflin Company. All rights reserved.

    Legal Issues

    Dual Distribution

    Restricted Sales

    Territories Tying Agreements

    Exclusive Dealing

    Refusal to Deal

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    14-25Copyright 2000 by Houghton Mifflin Company. All rights reserved.

    To Describe the Nature and Functions of

    Marketing Channels

    To Explain How Supply Chain Management Can

    Facilitate Distribution for the Benefit of All Channel

    Members, Especially Customers

    To Identify the Types of Marketing Channels

    To Discuss the Major Levels of Marketing

    Coverage

    To Discuss the Concepts of Leadership,

    Cooperation, and Conflict in Channel

    Relationships

    To Specify How Channel Integration Can Improve

    Channel Efficiency

    To Discuss the Legal Issues Affecting Channel

    Management

    BY NOW, YOU

    SHOULD BE ABLE . . .