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Marketing Management

Marketing hannel Strategies

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Marketing Channels

Sets of interdependent organizationsinvolved in the process of making a

product or a service available for useor consumption.

Trade= retailer, distributor orwholesaler.

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A supply chainis a system oforganizations, people, technology,

activities, information and resourcesinvolved in moving a product or servicefrom supplier to customer.

Supply chain activities transform naturalresources, raw material and componentsinto a finished product that is delivered tothe end customer.

Marketing Channels Concepts

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Logistics involves the integration ofinformation, transportation, inventory,

warehousing, material handling, andpackaging, and occasionally security.

Logistics is a channel of the supply chain

which adds the value of time and placeutility.

Marketing Channels Concepts

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Marketing Channel Flows

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Consumer Marketing Channels

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Number of Intermediaries

Exclusive

Selective

Intensive

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Conventional distribution systemsconsist of one or more independent

producers, wholesalers, and retailers.Each seeks to maximize its own profits,and there is little control over the othermembers and no formal means for

assigning roles and resolving conflict.

Conventional Distributions Systems

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Vertical marketing systems (VMSs)

provide channel leadership and consist ofproducers, wholesalers, and retailersacting as a unified system and consist of:

Corporate marketing systems

Contractual marketing systems Administered marketing systems

Vertical marketing systems

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Corporate verticalmarketing

system integratessuccessive stages ofproduction anddistribution under

single ownership

Vertical Marketing Systems

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Contractual vertical marketing system

consists of independent firms at differentlevels of production and distribution whojoin together through contracts to obtainmore economies or sales impact than each

could achieve alone. The most commonform is the franchise organization.

Vertical Marketing Systems

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Administered verticalmarketingsystemhas a few

dominant channel memberswithout common ownership.Leadership comes from size and

power.

Vertical Marketing Systems

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Horizontal marketingsystemsare when two or

more companies at onelevel join together tofollow a new marketingopportunity. Companiescombine financial,production, or marketingresources to accomplishmore than any onecompany could alone.

Horizontal Marketing Systems

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Multichannel Distribution systems(Hybrid marketing channels)are when asingle firm sets up two or more marketingchannels to reach one or more customersegments

Multichannel Distribution Systems

Hybrid Marketing Channels

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Disintermediationoccurs

when product or serviceproducers cut outintermediaries and godirectly to final buyers,

or when radically newtypes of channelintermediaries displacetraditional ones

Changing Channel Organization

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Strategies

1. Push Strategy

2. Pull Strategy