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Marketing Channels. Presented by Diego Ruiz Jeffery Botwinick Karina Ramos Yanmi Wang. Agenda. Marketing Channel Levels of Channel Channel Design Types of Marketing System Logistics. What is a Marketing Channel?. A set of interdependent organizations
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Marketing Channels Presented by Diego Ruiz Jeffery Botwinick Karina Ramos Yanmi Wang
Agenda • Marketing Channel • Levels of Channel • Channel Design • Types of Marketing System • Logistics
What is a Marketing Channel? A set of interdependent organizations Making products available to consumers or businesses. Creating greater efficiency on making goods available to target markets.
Customer Customer Manufacturer Number of contacts without a distributor Number of contacts with a distributor TheImportance of Marketing Channel Manufacturer Manufacturer Customer Customer Manufacturer Distributor Manufacturer Customer Customer Each channel member adds value Connect producers with customers Complete transactions Manufacturer
Producer Producer Consumer Marketing Channels Producer Producer Producer Business Marketing Channels Producer Marketing Channel Levels Manufacturer’s Representatives Wholesaler Business Distributor Business Distributor Retailer Retailer Business Customer Business Customer Business Customer Consumer Consumer Consumer Indirect Marketing Channel Direct Marketing Channel Channel 2 Channel 1 Channel 4 Channel 5 Channel 6 Channel 3 • no intermediary levels • company sells directly to consumers • one or more intermediary levels
Producer Types of Marketing System Wholesaler Retailer Consumer Conventional distribution channel Vertical marketing system Conventional marketing channel • One or more independent member • Seeking to maximize its own profits • no much control over other members • All members acting as a unified system • One channel member owns the others • Dominated by the producer the wholesaler, or the retailer Producer Retailer Wholesaler Consumer Vertical Marketing System
Types of Marketing System Horizontal Marketing Systems Multi-channel distribution channel • Two or more companies at one level • Accomplish more than any one company could alone • A single firm sets up two or more marketing channels • To reach one or more customer segments
Marketing channels Consumer marketing channels Business marketing channels
MarketingChannel Design Analyzing Customer Needs • Nearby locations • Buy in person, by phone or online • Range of assortments or specialization • Add-on services Setting Channel Objectives • Segments to serve • Nature of the company/products • Competitors • Environment
Marketing Channel Design Identifying Major Alternatives • Types of intermediaries • Number of intermediaries • Intensive distribution • Exclusive distribution • Selective distribution • Responsibilities of Channel Members Evaluating Major Alternatives • Economic criteria • Control issues • Adaptability criteria
Channel Considerations • Does the channel fit the target customers? • Is the channel going allow for profit? • How many intermediaries will be involved? • How will each add value?
Marketing Logistics • Warehousing • Taylor Farm has storage warehouses, and distribution centers. • Produce has a limited shelf life. • Distributions centers need to fill orders efficiently to ensure fresh produce. Taylor Farms operates nine Rapid deployment Centers (RDCs) through the country.
Inventory Management Balance inventory Affect customer satisfaction Product availability Ability to track product
Transportation Choice of carriers affect product pricing Affect the condition of goods Delivery performance
Logistics Information Management • Companies manage their supply through information. • Channels share information • Customer transactions • Billing • Shipment & inventory • Customer data
Motivating Intermediaries Opportunity for profit Price, terms, conditions Support and training Products line future Attractive brand Co-marketing (McCarthy, 2013)
Reflection Marketing channels connect producers to customers. There are two major types of channel Direct and indirect Channels are opportunities for value add in a target market The complexities that make a product available for consumers.
References Kolter, P. & Armstrong, G. (2014) Principles of Marketing. Upper Saddle NJ:Pearson Mckarthy, Brian K. (2013 February 24). Marketing Channels of Distribution. [Video file]. Retrievedfromhttps://www.youtube.com/watch?v=aOT4Wnuv3E8 HegedusWorld. (2012). Taylor Farms[Video file]. Vemo.http://vimeo.com/43966985