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    This document discusses marketing channels and considerations for establishing an effective distribution network. It defines a value delivery network as the companies involved in partnering to meet customer needs, and a marketing channel as the organizations that make a product available for use. When setting up channels, firms must consider the information, matching, physical distribution, financing, and risk management needs at each step. Both vertical conflicts between firms and horizontal conflicts between competitors can arise and must be managed.

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    chapter 13

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    This document discusses marketing channels and considerations for establishing an effective distribution network. It defines a value delivery network as the companies involved in partnering to meet customer needs, and a marketing channel as the organizations that make a product available for use. When setting up channels, firms must consider the information, matching, physical distribution, financing, and risk management needs at each step. Both vertical conflicts between firms and horizontal conflicts between competitors can arise and must be managed.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    8 views11 pages

    Marketing Channels

    Uploaded by

    alternatives101
    This document discusses marketing channels and considerations for establishing an effective distribution network. It defines a value delivery network as the companies involved in partnering to meet customer needs, and a marketing channel as the organizations that make a product available for use. When setting up channels, firms must consider the information, matching, physical distribution, financing, and risk management needs at each step. Both vertical conflicts between firms and horizontal conflicts between competitors can arise and must be managed.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 11

    Marketing Channels

    Fall 2006

    You gotta love trees

    Value Delivery Network


    Company,

    suppliers, distributors and


    customers who partner to improve
    system performance
    A demand chain orientation: start
    with the needs of customers

    Marketing Channel
    Interdependent

    organizations
    involved in the process of making a
    product available for use

    Think Efficiency and Effectiveness

    Add a Distributor

    And What Needs to be Done?


    Information

    Research
    Promotion
    Matching

    and Assorting
    Physical Distribution and Storage
    Financing
    Risk Taking

    It is Not Always Easy: Channel


    Conflict
    Vertical

    Conflict
    Horizontal Conflict

    Vertical Marketing Systems


    Corporate

    Channel

    Vertical Integration: wholly owned and


    tapered
    Contractual:

    Coordinated
    Administered

    Channel Considerations
    Types

    of Intermediaries

    Company Sales Force, Manufacturers


    Agents, and Industrial Distributors
    Number

    of Intermediaries

    Intensive distribution: Snickers


    Exclusive distribution: Rolls
    Selective distribution: Acura

    Video

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