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Selecting & Managing Marketing Channels

Selecting & Managing Marketing Channels. Otterbein College Winter 2000. Objectives. Work Performed by Marketing Channels Channel-Design Decisions Channel-Management Decisions Channel Dynamics. How a Distributor Reduces the Number of Channel Transactions. 1. 2. 3. 4.

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Selecting & Managing Marketing Channels

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  1. Selecting & ManagingMarketing Channels Otterbein CollegeWinter 2000

  2. Objectives • Work Performed by Marketing Channels • Channel-Design Decisions • Channel-Management Decisions • Channel Dynamics

  3. How a Distributor Reduces theNumber of Channel Transactions 1 2 3 4 A. Number of contacts without a distributor M x C = 3 X 3 = 9 5 6 7 8 9 = Manufacturer = Customer

  4. How a Distributor Reduces theNumber of Channel Transactions 1 B. Number of contacts with a distributor M x C = 3 + 3 = 6 4 Store 2 5 6 3 = Manufacturer = Distributor = Customer

  5. Information Transfer Communication Payments Negotiation Physical Distribution Ordering Risk Taking Financing Distribution Channel Functions

  6. Mfr. Consumer 0-level channel Mfr. Retailer Consumer 1-level channel  Mfr. Wholesaler Retailer Consumer 2-level channel   Mfr. Wholesaler Jobber Retailer Consumer 3-level channel     Consumer Marketing Channels

  7. Industrial distributors Consumer Manufacturer Manufacturer’s representative Manufacturer’s sales branch Industrial Marketing Channels

  8. Customers’ Desired Service Levels • Lot size • Waiting time • Spatial convenience • Product variety • Service backup

  9. Selecting Training Motivating FEEDBACK Evaluating Channel Management Decisions

  10. Corporate Common Ownership at Different Levels of the Channel Administered Leadership is Assumed by One or a Few Dominant Members Contractual Contractual Agreement Among Channel Members Types of Vertical Marketing Systems

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