Professional Documents
Culture Documents
12-1
PRINCIPLES OF MARKETING
Chapter
Chapter 12
12
Distribution Channels
and
Logistics Management
12-2
12-2
Distribution
Distribution Channels
Channels
• Channel decisions
– affect other marketing decisions
– involve long-term commitments
12-3
12-3
Role
Role of
of Intermediaries
Intermediaries
• Greater efficiency in making goods
available to target markets.
• Intermediaries provide
– Contacts
– Experience
– Specialization
– Scale of operation
• Match supply and demand.
12-4
12-4
Channel
Channel Functions
Functions
•Information
•Promotion
•Contact
•Matching
•Negotiation
•Physical Distribution
•Financing
•Risk taking
12-5
12-5
Channel
Channel Levels
Levels
•Manufacturer
•Wholesaler
•Retailer
•Consumer
12-6
12-6
Channel
Channel Behavior
Behavior and
and Conflict
Conflict
Vertical
Vertical Marketing
Marketing Systems
Systems
• Corporate
– common ownership at different channel levels
• Contractual
– contractual agreement among channel members
• Administered
– leadership assumed by dominant members
12-8
12-8
Innovations
Innovations in
in Marketing
Marketing Systems
Systems
Horizontal
Horizontal Marketing
Marketing Hybrid
HybridMarketing
Marketing
System
System System
System
Analyzing
Analyzing Consumer
Consumer Service
Service Needs
Needs
Setting
Setting Channel
Channel Objectives
Objectives &
& Constraints
Constraints
Identifying
Identifying Major
Major Alternatives
Alternatives
Intensive
Intensive Selective
Selective Exclusive
Exclusive
Distribution
Distribution Distribution
Distribution Distribution
Distribution
Evaluating
Evaluating the
the Major
Major Alternatives
Alternatives
12-10
Channel
Channel Management
Management Decisions
Decisions
12-10
Selecting
Selecting
FEEDBACK
Motivating
Motivating
Evaluating
Evaluating
12-11
12-11
Logistics
Logistics
Logistics
Logistics Functions
Functions
• Order Processing
• Warehousing
• Inventory Management
• Transportation
Air
Air
High
Highcost,
cost,ideal
idealwhen
whenspeed
speedisisneeded
neededor
orto
to
ship
shiphigh-value,
high-value,low-bulk
low-bulkitems
items
Integrated
Integrated Logistics
Logistics Management
Management
12-15
12-15
Cross-Functional
Cross-Functional Teamwork
Teamwork inside
inside
the
the Company
Company
Building
Building Channel
Channel Partnerships
Partnerships
Third-Party
Third-Party Logistics
Logistics