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Marketing Channels for Wholesaling Success

Explore marketing channels in wholesaling, intermediaries' roles, B2B/B2C examples, channel partnerships, conflicts, and legal issues for successful distribution. Learn about types of intermediaries, factors influencing channel choice, conflict resolution, and legal considerations in wholesaling.

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Marketing Channels for Wholesaling Success

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  1. Wholesaling Chapter 13

  2. Marketing Channels • What is a marketing channel? • Intermediaries • Transactional role • Logistical role • Facilitation role

  3. Marketing Channels- B2C Schwan’s General Motors Mansar Products Mars Agent Wholesaler Wholesaler Retailer Retailer Retailer Consumer Consumer Consumer Consumer

  4. Marketing Channels- B2B IBM Caterpillar Harkman Electric Stake Fastener Agent Agent Industrial User Industrial Distributor Industrial User Industrial User Industrial User Industrial User

  5. Other Channel Terms • Direct Marketing Channels • L.L. Bean • Dual Distribution • Hallmark • Strategic Channel Alliances • Kraft & Starbucks Source: www.hallmark.com

  6. Channel Intermediaries • Merchant Wholesalers • Full-service • General-merchandise • Specialty-merchandise • Limited-service • Rack jobbers • Cash & carry • Drop shippers • Truck jobbers

  7. Agents & Brokers • Characteristics • Manufacturer’s Agents • Selling Agents • Brokers Source: http://www.optimumscouting.com

  8. 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

  9. Factors Determining Channels Choice • Environmental Factors • Consumer Factors • Product Factors • Company Factors

  10. Considerations • Target Market Coverage • Buying Requirements • Profitability

  11. Considerations • Target Market Coverage • Intensive distribution • Exclusive distribution • Selective distribution

  12. Considerations • Buyer Requirements • Information • Convenience • Proximity • 8-second rule • Variety • Breadth and depth of products offered by intermediary • Attendant Services

  13. Considerations • Profitability • How are margins divided?

  14. Types of Conflict • Vertical conflict • Disintermediation • Profit margin distribution • Attention given to products • Horizontal conflict • Infringement upon market area • Different retailers selling same brand

  15. Cooperation • Channel Captain • Economic influence • Expertise influence • Identification influence • Legitimate influence

  16. Legal Issues • Dual distribution • Too much power? • Exclusive Dealing • Tying Arrangements

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