Marketing Channels and Supply Chain Management

By: Jerielyn V. Reyes

Distribution
‡ Place is where the product is made available consistent with the target market purchasing pattern. ‡ Marketing channel is a set of interdependent organization involved in the process of making a product or service available. ‡ Intermediaries are firms that help the company to promote, sell and distribute its goods to final buyers.

Number of Channel Levels .

Sales agents ‡ Facilitators.assist in the performance of distribution but neither take title to goods nor negotiate purchases or sales ‡ Transportation companies. take title to and resell the merchandise ‡Wholesaler ‡ Retailer ‡ Agent Middlemen . Manufacturers representative . Banks ‡ Advertising agencies . Independent warehouses.buy.negotiate on behalf of the producers but do not take title to the goods ‡ Brokers.Intermediaries ‡ Merchant Middlemen .

‡ Facilitate the exchange process by cutting the number of contacts necessary ƒ Adjust for discrepancies in the market¶s assortment of goods and services via sorting .

Distribution Channel Functions Information Promotion Negotiation Ordering Financing Risk taking Physical possession Payment Title .

Channel Management Channel Conflict Horizontal Conflict Occurs among firms at the same channel level sometimes results from disagreements among channel members Vertical Conflict Occurs among firms at different channel levels .

Causes of Marketing Channel Conflict ‡ Goal Incompatibility ‡ Domain Dissensus ‡ Differing Perceptions of Reality Effects on Marketing Channel Performance ‡ Channel members may become less cooperative ‡ Channel members may share less information ‡ May have less time for routine operation .

Channel Systems Producer Producer Wholesaler Wholesaler Retailer Retailer Consumer Consumer Conventional Marketing System Vertical Marketing System .

and retailers acting as a unified system. has contract with them. or wields so much power that they must all cooperate. One channel member owns the other. ‡ Three major types of VMS Corporate Contractual Administered .Vertical Marketing Systems ‡ VMS consist of producers. wholesaler.

Corporate Corporate: a VMS in which a single owner operates at each stage in its marketing channel. .

Join together through contract to obtain more economies and sales impact Ex:.‡ Contractual: a VMS that consist of independent firms at different levels of marketing channel. .Franchise organization.

‡ Administered : VMS that achieves channel Administered: coordination when a dominant channel member exercises its power .

.Horizontal Marketing System ‡ In this two or more companies at one level join together to follow a new marketing opportunity.

Multi Channel Distribution System ‡ Multichannel marketing occurs when a single firms sets up two or more marketing channel to reach to one or more customer segment. Producer Wholesaler Retailer Consumer Segment 1 Consumer Segment 2 Retailer Consumer Segment 3 .

. ‡ Conflict with established reseller channels.Changing Channel Organization ‡ Disintermediation ‡ Increased use of internet as channel.

Industrial Distributors . . Manufacturer¶s Agency ± independent firms handling related products from many companies.expand the company¶s direct sales force.Types of Intermediaries Channel alternatives: Company Sales force .distributors in the different regions who will buy and carry device where you can give exclusive distribution adequate margins and promotional support.

The Number of Intermediaries in each level Strategies Intensive Distribution .limited number of dealers with exclusive right to distribute the product within territories. but fewer than all.stocking products in numerous outlets Exclusive Distribution . of the intermediaries who are willing to carry a company¶s product . Selective Distribution ± the use of more than one.

Marketing Logistics and Supply Chain Management ‡ Involves getting the right product to the right customer in the right place at the right time ‡ Inbound distribution ‡ Outbound distribution ‡ Reverse distribution .

Major Logistics Functions ‡ Warehousing ‡ Inventory Management ‡ Transportation .

Marketing Logistics and Supply Chain Management ‡ Transportation Carrier Options Truck Railroads Water carriers Pipelines Air Internet Intermodal Third-party .

Thank You!!! .

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