Marketing Channel Strategy



                                           Channel Flows

                                  Nature of Distribution Channels:
                                 Why Use Marketing Intermediaries?

                                 Why Use Marketing Intermediaries?



                                   Distribution Channel Functions

                               Traditional Marketing Channel Designs

                                  The Design of Marketing Channels

                                  The Design of Marketing Channels

•      Buyers are easily identifiable

•      Personal selling is a major component of the communication mix

•      Organization has a wide variety of offerings for the target market

•      Sufficient resources are available

                                  The Design of Marketing Channels

•      Intermediaries are not available for reaching target markets

•      Intermediaries do not possess the capacity to service the requirements of target markets

                                  The Design of Marketing Channels

•      Intermediaries can perform distribution functions more efficiently and less expensively

•      Customers are hard to reach directly

•      Organization does not have resources to perform distribution function













                                        Channel Management:
                                     Evaluating Channel Members

                            Conventional vs. Vertical Marketing Systems

                                Types of Vertical Marketing Systems

                            Nature and Importance of Marketing Logistics

•      Involves getting the right product to the right customers in the right place at the right
time.

•      Companies today place greater emphasis on logistics because:

  –    customer service and satisfaction have become the cornerstone of marketing strategy.

  –    logistics is a major cost element for most companies.

  –    the explosion in product variety has created a need for improved logistics management.

  –    Improvements in information technology has created opportunities for major gains in
  distribution efficiency.

                                   Goals of the Logistics System

                               Channel Selection at the Retail Level
                                       Target Market Coverage