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Marketing Channels. Delivering Customer Value Chris Beltran, Messaline Clement, Mireya Gama, Cody Pru e. Agenda. Chapter 12 Key Ideas Video In-N- Out Comprehensive Model Discussion Questions . The Value Delivery Network . Direct Marketing Channel vs. Conventional Marketing Channel.

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Marketing channels

Marketing Channels

Delivering Customer Value

Chris Beltran, Messaline Clement, Mireya Gama, Cody Prue


  • Chapter 12 Key Ideas

  • Video

  • In-N- Out Comprehensive Model

  • Discussion Questions

Direct marketing channel vs conventional marketing channel
Direct Marketing Channel vs. Conventional Marketing Channel



Vertical marketing system
Vertical Marketing System

In-N-Out: Corporate VMS

Ford: Contractual VMS

Walmart, Home Depot: Administered VMS

Horizontal Marketing System

Walmart & McDonalds

Taco Bell & Pizza Hut

Supply chain management
Supply Chain Management

  • Supply Chain Management

    • Managing upstream and downstream value- added flows of materials, final goods, and final consumer

Channel management decision
Channel Management Decision

Selecting Channel Members

Managing and motivating channel members

Evaluating channel members

Public policy and distribution decisions
Public Policy and Distribution Decisions

  • Exclusive territorial agreements

    • Producer or seller limit territory

  • Exclusive dealing

    • Seller requires that the sellers not handle competitor’s products

  • Exclusive distribution

    • Seller allows only certain outlets to carry its products

  • Tying agreements

    • Dealer must take most or all of the line

Major logistics functions
Major Logistics Functions

  • Marketing logistics:

    • Planning, implementing, and controlling the physical flow of goods and services from points of origin to points of consumption

  • Transportation

    • Trucks- 40%

    • Railroads- 40%

    • Water carriers- Less than 5%

    • Air carriers & Pipelines- Less than 1%

Third party logistics
Third Party Logistics

  • 3PL Supply Chain

  • Defined as a firm that provides service to its customers of outsourced (3rd Party) logistics as part of their supply chain management functions.

  • Typically specialized in warehousing and transportation that can be catered to customers needs.


  • Leading fast- food retail chain with over 200 locations in California, Nevada, and Arizona

  • Private, family- run, non- franchised company

    • Harry Snyder and his wife, Esther, opened what is said to be California's first drive-thru restaurant.

  • Known for its made- to –order hamburgers, fresh ingredients and efficient service

  • Maintained the steady rate of expansion with traditional menu and a simple, customer- friendly philosophy


  • Own distribution system

    • Private butchers, warehouses, truck lines

    • Must improve system to expand beyond west coast and maintain strategic position

Discussion questions
Discussion Questions

Do you believe In-N-Out Burger should remain non franchised or branch out like their competitors?

What are the complexities of using international distribution channels?