Topic 7: Channels

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Topic 7 Channels

• Principles of Marketing

2
Some Definitions

• ___________________ the activities that make
  products available to customers when and where
  they want them
• ___________________ group of individuals and
  organizations directing products from producsers
  to customer
• ___________________ middlemen linking producers
  to other middlemen or ultimate consumers

3
Channel________________

• _____________
• Marketing research
• Financial
• Physical distribution
• Inventory management
• Promotion
• Customer service

• _____________
• Time
• Place
• Form
• Information
• Possession

4
Managing Marketing Channels
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Selecting a Channel

• _____________
• Characteristics
• Needs
• Segments
• _____________
• Goals
• Resources
• Expertise
• Experience
• _____________
• Characteristics
• Tactics

• _______________
• Value
• Complexity
• Perishability
• Bulk
• Tradition
• _______________
• Alternatives
• Characteristics
• Availability
• _______________

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Distribution Intensity
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• Factors Affecting ______________
• Cost
• Capital
• Control
• Coverage
• Character
• Continuity
• Change

• ________________
• Financial
• Power
• Reward
• Legitimate
• Expert
• Referent
• Coercive
• Leadership
• Cooperation
• Conflict

8
Types of________________

• Manufacturers sales branches and offices
• Merchant wholesalers
• Full-service wholesalers
• General merchandise wholesalers
• Limited-line wholesalers
• Specialty line wholesalers
• Rack jobbers
• Limited service wholesalers
• Agents and brokers

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Types of_____________
Various Services That Limited-Service Merchant
Wholesalers Provide
Cash-and- Carry
DropShipper
Mail-Order
Truck
Physical possession of merchandise Yes Yes No
Yes Personal sales calls on customers No Yes
No No Information about market
conditions No Some Yes Yes Advice to
customers No Some Yes No Stocking and
maintenance ofmerchandise in customers
stores No No No No Credit to customers No No
Yes Some Delivery of merchandise to
customers No Yes No No
10
Types of________________
Various Services That Agents and Brokers Provide
Manufac-turersAgents
Commis-sionMerchants
SellingAgents
Brokers
Physical possession of merchandise Some
Some Yes No Long-term relationship
with buyersor sellers Yes Yes Yes
No Representation of competing product lines N
o No Yes Yes Limited geographic
territory Yes No No No Credit to
customers No Yes Some No Delivery of
merchandise to customers Some Yes Yes
No
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Wholesaling Functions

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Major Types of Retailers

13
Major Types of Retail Stores

• _________________
• Department stores
• Discount stores
• Supermarkets
• Superstores
• Hypermarkets
• Warehouse clubs
• Warehouse catalog showrooms
• Convenience stores

• _______________
• Traditional specialty retailers
• Off-price retailers
• Outlets
• Category killers

14
Forms of______________
Producer authorizes sale of brand name
Producer license sales through distributors
Franchiser carefully develops and controls
marketing strategies
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FranchisingPros Cons

• Advantages
• Limited capital needs
• Use experience of others
• Assurance of customers
• Availability of guidance
• Smaller probability of failure
• Advertising assistance

• Disadvantages
• Controlled by franchiser
• Cost of franchise
• Hard work and long hours
• Reduced personal control

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• _____________
• Direct Selling
• Automatic Vending
• Direct Marketing

• ____________
• Telemarketing
• Television home shopping
• Direct response marketing
• Catalog sales
• Online sales

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______________________
Location
Consumers
Goods Services
Competition
Controllable
Not Controllable
Pricing
Economic Conditions
Marketing Comm.
Seasonality
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____________________________

• Location of retail stores
• Free-standing structures
• Traditional business districts
• Traditional shopping centers
• Neighborhood shopping centers
• Community shopping centers
• Regional shopping centers
• Nontraditional shopping centers

• Global retailing
• Customer service
• Retail positioning
• Store image
• Atmospherics
• Technological advances
• Scrambled merchandising
• Wheel of retailing

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_______________________
Traditional Department Stores
Full Line Discount
Prestige
New Discount
High
Low
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________________________

• Exclusive territory
• Exclusive dealing
• Tying contracts
• Consumer fraud
• Shoplifting
• Slotting fees