Colgate Toothpaste Practicum #5 Bus 306 Spring 2014 . By Patrick Sasaki Bret Russell Sean Curtis Michael Isom. Colgate Commercial. https://www.youtube.com/watch?v=_3G7vpYd3S8 3:38-4:25. Chapter 12: Marketing Channels -Delivering Customer Value.
Bus 306 Spring 2014
-Objective 1: Marketing Channel uses and their Functions.
-Objective 2: Behavior and Organization of Market Channels.
-Objective 3: Distribution Channel Decisions.
-Objective 4: Channel Management and Distribution.
-Objective 5: Logistics and Supply Chain Management
-Consists of upstream and downstream partners.
-Downstream partners are distribution channels such as retailers and
-Marketing channels directly affect every marketing decision.
-Colgate’s prices are affected by its supplier type.
-Their new products must be able to adhere to channel partner operations.
-Colgate’s sales decisions are based on its downstream channels.
- Three types of channel levels.
-Channel 1 (Direct Marketing Channel)
-Company sells directly to consumers.
-Channel 2 (Indirect Marketing Channel)
-Company uses only one distribution channel.
-Channel 3 (Indirect Marketing Channel)
- Company uses more than one marketing channel.
Number of Levels
-Channel partners rely on one another for maximum efficiency and
profit. If disagreements occur, channel conflict arises.
-Horizontal and Vertical Conflicts
-Horizontal, is conflict between same channel levels.
-Vertical, is conflict between different channel levels.
- A vertical system: Has channel leadership and includes producers, wholesalers, and - retailers. Types of VMS- Corporate VMS: Ownership. Contractual VMS: Contracts. - Administered VMS: Power.
- Horizontal Systems
- A horizontal system is when two channels of the same level join
together to create a better marketing opportunity.
- Organizations create multiple
distribution channels to reach
-A changing world filled with
advanced technology calls for
different distribution measures.
-Analyzing Customer Needs
-Each channel level must be selected carefully, each level adds value to the
-Setting Channel Objectives
-A company must figure out which channels work best for each segment.
-Identifying and Evaluating Alternatives
-Marketing Channels vary in types, numbers, and responsibilities.
-International Distribution Channels
-International intermediaries face complex and challenging issues.
-Colgate implements Intensive
Distribution: As many as outlets as
possible (Trunick, 2011)
-Colgate’s International Distribution
Channels consist of One Central
Distributor for the entire region(Trunick, 2011)
-Selecting, Managing, and Evaluating
-Exclusive distribution is when a company allows only a certain outlets to carry its
-Exclusive dealing is when a company requires a channel to not handle its
-Importance and Goals of Logistics
-Integration of Logistics
-Involves teamwork, building relationships, and third-parties.
-Transportation- 65 Ocean Containers, 3800 Truck Loads per week. (“Colgate palmolive,”)
- Negotiated Global Tender Agreement allowing cheaper shipping overseas (Colgate palmolive,”)
-Green Logistics-Colgate cut 1.8 million miles of line haul from its system, which equates to 300,000 gallons of diesel and 3,000 tons of carbon emissions (“Colgate palmolive,”)
- Integrated -Third Party Logistics- Outsourced Logistics to Imperial Logistics Co. (“Imperial logistics, 2014)
Michael- The importance of marketing channels and the roles that they play. Also the different levels there are and how they work.
Patrick-The amount of time and effort it takes a product to go from raw material to end user. The intricate design of a supply/distribution chain and the importance of each decision.
Bret- I found it intriguing that third-party logistics can play an such important role in distribution marketing. As it is affects every other decision.
Sean- The internet has produced a lot of channel conflict and disintermediation for companies.
-Imperial Logistics. (2014, January 30). Imperial wins Colgate-Palmolive contract. Retrieved April 3, 2014,
-Marketing (15th th ed., p-Kotler, P., & Armstrong, G. (2014). Principles op. 191-216). Upper Saddle
River, NJ: Pearson.
-Francis, A. (2010, September 23). Concept of distributing channels in marketing. In MBA Knowledge.
Retrieved April 3, 2014,
-Trunick, P. (2011). Colgate logistics delivers smiles. Retrieved from http://www.inboundlogistics.com/cms/article/colgate-logistics-delivers-smiles/
-Colgate palmolive. (n.d.). Retrieved from http://p7distributioncasestudy.wikispaces.com/Colgate Palmolive