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CHAPTER 13 – Marketing Channels and Supply Chain Management PowerPoint PPT Presentation


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CHAPTER 13 – Marketing Channels and Supply Chain Management. TYPES OF DISTRIBUTION CHANNELS. A. Direct Selling - direct sales between buyer & seller Ex. Mary Kay, Tupperware, Baskets B. Marketing Intermediaries: Figure 13.2. DUAL DISTRIBUTION.

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CHAPTER 13 – Marketing Channels and Supply Chain Management

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Chapter 13 marketing channels and supply chain management l.jpg

CHAPTER 13 – Marketing Channels and Supply Chain Management


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TYPES OF DISTRIBUTION CHANNELS

A. Direct Selling

- direct sales between buyer & seller

Ex. Mary Kay, Tupperware, Baskets

B. Marketing Intermediaries: Figure 13.2


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DUAL DISTRIBUTION

  • Use of 2 or more distribution channels to reach the same target market.


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REVERSE CHANNELS

  • Backward movement of goods from user to the producer

    Ex. recycling


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Functions of Intermediaries

Create:

TIME UTILITY

PLACE UTILITY

OWNERSHIP UTILITY


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Types of Wholesaling Intermediaries

1. Manufacturer-Owned Facilities

- sales branches & offices

2. Independent Wholesaling Intermediaries

- account for majority of wholesaling establishments & wholesale sales in U.S.

Merchant wholesalers: take title to goods they handle

Agents & Brokers:may or may not take possession of goods but they never take title


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3. Retailer-Owned Facilities

- independent retailers may band together to form buying groups to get cost savings thru quantity purchases


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Factors Affecting Channel Strategy Decisions

1. MARKET FACTORS

  • whether product is intended for the consumer (long) or the business (short) market

    2. PRODUCT FACTORS

  • perishable or complex products(short channels)

  • generally the more standardized the product, the longer the channel


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3. PRODUCER FACTORS

  • companies w/ adequate financial, managerial & marketing resources are less compelled to utilize intermediaries in marketing their products

    4. COMPETITIVE FACTORS

  • inadequate promotion of products may require manufacturers to develop unique distribution channels


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Distribution Intensity

1. INTENSIVE DISTRIBUTION

- used for convenience goods

Ex. Gum, soda, candy, cigarettes

2. SELECTIVE DISTRIBUTION

- a firm chooses only a limited number of retailers in a market area to handle its product line

Ex. Nike


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3. EXCLUSIVE DISTRIBUTION

- extreme form of selective distribution

- most often used for specialty goods

  • Suboptimization


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Modes of Transportation

  • Truck

  • Railroad

  • Pipeline

  • Air

  • Water Carriers


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