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Effective marketing channels are vital for meeting customer needs and improving system performance. This article explores the concept of value delivery networks involving companies, suppliers, distributors, and customers. It emphasizes a demand chain orientation that starts with customer requirements, highlighting the importance of efficiency and effectiveness through strategic distribution. Key topics covered include types of intermediaries, channel conflicts, vertical and horizontal systems, and various distribution strategies such as intensive, exclusive, and selective distribution. Learn how to optimize your marketing channels for success.
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Marketing Channels Fall 2006
Value Delivery Network • Company, suppliers, distributors and customers who partner to improve system performance • A demand chain orientation: start with the needs of customers
Marketing Channel • Interdependent organizations involved in the process of making a product available for use
And What Needs to be Done? • Information • Research • Promotion • Matching and Assorting • Physical Distribution and Storage • Financing • Risk Taking
It is Not Always Easy: Channel Conflict • Vertical Conflict • Horizontal Conflict
Vertical Marketing Systems • Corporate Channel • Vertical Integration: wholly owned and tapered • Contractual: Coordinated • Administered
Channel Considerations • Types of Intermediaries • Company Sales Force, Manufacturer’s Agents, and Industrial Distributors • Number of Intermediaries • Intensive distribution: Snickers • Exclusive distribution: Rolls • Selective distribution: Acura