Wholesaling
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Wholesaling. Chapter 13. Marketing Channels. What is a marketing channel? Intermediaries Transactional role Logistical role Facilitation role. Marketing Channels- B2C. Schwan’s. General Motors. Mansar Products. Mars. Agent. Wholesaler. Wholesaler. Retailer. Retailer. Retailer.

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Wholesaling

Wholesaling

Chapter 13


Marketing channels

Marketing Channels

  • What is a marketing channel?

  • Intermediaries

    • Transactional role

    • Logistical role

    • Facilitation role


Marketing channels b2c

Marketing Channels- B2C

Schwan’s

General Motors

Mansar Products

Mars

Agent

Wholesaler

Wholesaler

Retailer

Retailer

Retailer

Consumer

Consumer

Consumer

Consumer


Marketing channels b2b

Marketing Channels- B2B

IBM

Caterpillar

Harkman Electric

Stake Fastener

Agent

Agent

Industrial User

Industrial Distributor

Industrial User

Industrial User

Industrial User

Industrial User


Other channel terms

Other Channel Terms

  • Direct Marketing Channels

    • L.L. Bean

  • Dual Distribution

    • Hallmark

  • Strategic Channel Alliances

    • Kraft & Starbucks

Source: www.hallmark.com


Channel intermediaries

Channel Intermediaries

  • Merchant Wholesalers

    • Full-service

      • General-merchandise

      • Specialty-merchandise

    • Limited-service

      • Rack jobbers

      • Cash & carry

      • Drop shippers

      • Truck jobbers


Agents brokers

Agents & Brokers

  • Characteristics

  • Manufacturer’s Agents

  • Selling Agents

  • Brokers

Source: http://www.optimumscouting.com


Channel partnerships

Channel Partnerships

  • Vertical Marketing Systems

    • Corporate

      • Forward integration: Sherwin-Williams

      • Backward integration: Kroger

    • Contractual

      • Wholesaler-sponsored Voluntary Chains

      • Retailer-sponsored Cooperatives

      • Franchising

    • Administered

      • Administered Vertical Marketing Systems


Channel partnerships1

Channel Partnerships

  • Collaborative use of information and open communication

  • Levi Strauss and Modell’s Sporting Goods


Factors determining channels choice

Factors Determining Channels Choice

  • Environmental Factors

  • Consumer Factors

  • Product Factors

  • Company Factors


Considerations

Considerations

  • Target Market Coverage

  • Buying Requirements

  • Profitability


Considerations1

Considerations

  • Target Market Coverage

    • Intensive distribution

    • Exclusive distribution

    • Selective distribution


Considerations2

Considerations

  • Buyer Requirements

    • Information

    • Convenience

      • Proximity

      • 8-second rule

    • Variety

      • Breadth and depth of products offered by intermediary

    • Attendant Services


Considerations3

Considerations

  • Profitability

    • How are margins divided?


Global market

Global Market

  • Must consider intermediaries in foreign markets


Types of conflict

Types of Conflict

  • Vertical conflict

    • Disintermediation

    • Profit margin distribution

    • Attention given to products

  • Horizontal conflict

    • Infringement upon market area

    • Different retailers selling same brand


Cooperation

Cooperation

  • Channel Captain

    • Economic influence

    • Expertise influence

    • Identification influence

    • Legitimate influence


Legal issues

Legal Issues

  • Dual distribution

    • Too much power?

  • Exclusive Dealing

  • Tying Arrangements


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