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BUS 343 (64)
Lecture

chapter 12 .docx

4 Pages
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Department
Business Administration
Course Code
BUS 343
Professor
Zaheer Jiwani

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Description
Marketing channels and retailing (chapter 12) The supply chain includes all the activities necessary to burn raw materials into a good or service and put it into the hands of the consumer or business customer. Distribution: movement of goods and services from producers to customers Channel of distribution: The series of firms or individuals that facilitates the movement of a product from the producer to the final customer.  Supply chain: raw materials  parts suppliers  manufacturer resellers consumers Supplier network channel of distribution Marketing intermediary: wholesaler or retailer that operates between producers and consumers or business users; also called a middleman  Agents and brokers: do not take title to goods  Merchant wholesalers: take title to goods  Retailers: take title to goods Type of intermediaries  Independent intermediaries  Merchant wholesalers  Cash-and-carry wholesalers  Truck jobbers  Drop shippers  Mail-order wholesalers  Rack jobbers  Merchandise agents and brokers  Manufacturers agents  Selling agents, including export/import agents  Commission merchants  Merchandise brokers, including export/import brokers  Manufacturer-owned intermediaries  Sales branches  Sales offices  Manufacturers/showrooms Type of distribution channels  Consumer channel  Direct channel: moves goods directly from a producer to ultimate user  B2B channel: facilitate the flow of goods from a producer to an organizational or business customer  Dual (multiple) and hybrid distribution systems: Network that moves products to a firm’s target market through more than one marketing channel Factors which impact the selection of a marketing channel include:  Market factors  Customer profiles  Consumer or industrial customer  Size of market  Geographic location  Product factors  Perishable goods and seasonal fashion move through short channels  Standardized non-perishable items with low unit cost pass through long channels  Organizational factors  Competitive factors Distribution intensity  Intensive distribution: A form of distribution aimed at having a product available in every outlet (Coca-Cola)  Selective distribution: screening dealers to eliminate all but a few in any single area (D&G product line)  Exclusive distribution: established one or a few dealers within a given area. (Audi cars) Plan a Channel Strategy  Step 1: Develop Distribution Objectives  Step 2: Evaluate Internal and External Environmental Influences  Step 3: Choose a Distribution Strategy  Number of channel levels  Conventional, vertical or horizontal marketing system  Conventional: multilevel distribution channel in which members work independently of one another.  Vertical: formal cooperation among channel members at two or more different levels: Manufacturing, wholesaling, and retailing  Horizontal: an arrangement within a channel of distribution in which two or more firms at the same channel level work together for a common purpose.  Intensive, exclusive or selective distribution  Intensive distribution: A form of distribution aimed at having a product available in every outlet (Coca-Cola)  Selective distribution: screening dealers to eliminate all but a few in any single area (D&G product line)  Exclusive distribution: established one or a few dealers within a given area. (Audi cars)  Step 4: Develop Distribution Tactics  Select channel partners: When firms agree to work together in a channel relationship, they become partners  Manage the channel  Cannel captain: a dominant and controlling member of a marketing cha
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