Haagen-Dazs ice-cream project
Marketing Channels:
Delivering Customer Value
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MARKETING AN INTRODUCTION
Armstrong/Kotler
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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
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Marketing Channel
Marketing channel is a set of interdependent
organizations that
help make a
product or service
available for use
or consumption by the
consumer or business user.
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Channel Members Add Value
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Information
Promotion
Contact
Matching
Negotiation
Physical distribution
Financing
Risk taking
Multichannel Distribution Systems
Direct Channel
Manufacturer - Consumer
Indirect Channels
Manufacturer – Retailer – Consumer
Manufacturer – Wholesaler – Retailer – Consumer
Manufacturer – Wholesaler – Jobber – Retailer - Consumer
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Channel Behavior
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Channel conflict is disagreement among marketing channel members on goals, roles, and rewards.
Horizontal conflict
Vertical conflict
Types of Franchises
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Manufacturer-sponsored retailer
Manufacturer-sponsored wholesaler
Service-firm-sponsored retailer
Changing Channel Organization
Disintermediation is the cutting out of marketing channel
intermediaries by
product or service
producers, or the
displacement of
traditional
by radical new types of intermediaries.
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Number of Marketing Intermediaries
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Notes to Accompany Slide:
Intensive distribution - Stocking the product in as many outlets as possible.
Exclusive distribution - Giving a limited number of dealers the exclusive right to distribute the company’s products in their territories.
Selective distribution - The use of more than one, but fewer than all, of the intermediaries who are willing to carry the company’s products.
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Selective Distribution
Exclusive Distribution
Intensive Distribution
Marketing Logistics
Marketing logistics (or physical distribution) involves the planning, implementing, and controlling the physical flow of materials, final
goods, and related information from points of origin to points of consumption to meet customer
requirements at a profit.
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Supply Chain management
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Major Logistics Functions
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Warehousing
Inventory management
Transportation
Logistics Information management