Chapter 7 Marketing Channel Strategy and Management What is a marketing channel? A marketing channel consists of individuals and firms involved in the process of making a product or service available for consumption or use by consumers and industrial users.
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Marketing Channel Strategy and Management
What is a marketing channel?
A marketing channel consists of individuals and firms involved in the process of making a product or service available for consumption or use by consumers and industrial users.
Role of the channel in marketing strategy
The marketing manager must answer the following questions:
Brokers or Agents
Distributors or Wholesalers
Retailers or Dealers
Direct distribution is typically used when:
Direct distribution must be considered when:
Indirect distribution must be considered when:
Electronic marketing channels employ some form of electronic communication, including the Internet, to make products and services available for consumption or use by consumers and industrial users.
Auto-By-Tel (Virtual Broker)
Amazon.com (Virtual Retailer)
Disintermediation is the elimination of traditional intermediaries and direct distribution through electronic marketing channels.
Effective Distribution occurs when a limited number of retail outlets account for a significant fraction of the market potential.
Example: A marketer distributes the product through 40% of available outlets, but these outlets account for 80% of the market.
When is it used
Multi-channel marketing involves the blending of an electronic marketing channel and a traditional channel in ways that are mutually reinforcing in attracting, retaining, and building relationships with customers.
Satisfying Intermediary Requirements and Trade RelationsIntermediary Requirements
Satisfying Intermediary Requirements and Trade RelationsTrade Relations
Channel Conflict arises when one channel member believes another channel member is engaged in behavior that is preventing it from achieving its goals.
Satisfying Intermediary Requirements and Trade RelationsSources of Channel Conflict
Satisfying Intermediary Requirements and Trade RelationsChannel Power
Channel Captain is a channel member that takes on the role of coordinating, directing, and supporting other channel members.
Satisfying Intermediary Requirements and Trade RelationsForms of Channel Captain Power