Marketing 624. Channels of Distribution Management. Marketing Channel Strategy. Dr. Bert Rosenbloom Professor of Marketing and Rauth Chair in Electronic Marketing. Channel Strategy. The broad principles by which the firm expects to achieve its distribution objectives for its target market(s).
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Channels of Distribution Management
Marketing Channel Strategy
Dr. Bert Rosenbloom Professor of Marketing and
Rauth Chair in Electronic Marketing
The broad principles by which the firm expects to achieve its distribution objectives for its target market(s)
What kinds of channel members should be selected to meet the firm’s distribution objectives?
How can the marketing channel be managed to implement the firm’s channel design effectively and efficiently?
How can channel member performance be evaluated?
Those decisions involving the development of new marketing channels where none had existed before, or the modification of existing channels
Channel Design and Differential Advantage
Recognize Need for Channel Design Decision
Obvious examples pp. 200-201 in text
But many times the need to make channel design decisions is not obvious
Set & Coordinate Distribution Objectives
Become familiar with objectives of firm
Set explicit distribution objectives
Check for congruency
Specifying Distribution Tasks
Don’t underestimate all of the “nuts and bolts” necessary to make products and services conveniently available to customers
Develop Alternative Channel Structures
Number of levels
Intensity at various levels
Types of intermediaries
Evaluate Variables Affecting channel Structure
Heuristics play an important role
Choosing the “Best” Channel Structure
Select the Channel Members
Work “backwards” from what the final customers wants. A “bottom up” approach.
Who makes physical purchase?
Who uses the product?
Who influences the buying decision?
The administration of existing channels to secure the cooperation of channel members in achieving the firm’s distribution objectives
What are the channel management implications during each stage?