MKGT2 Lecture 2: FACTORS INFLUENCING MARKETING CHANNEL STRATEGIES
Document Summary
Market factors- business users geographically concentrated extensive technical knowledge and regular servicing required large orders. Consumers geographically dispersed little technical knowledge and regular servicing not required small orders. Organizational factors- manufacturer has adequate resources to perform channel functions broad product line channel control important. Manufacturer lacks adequate resources to perform channel functions, limited product line channel control not important. Competitive factors- manufacturer feels satisfied with marketing intermediaries" performance in promoting products. Manufacturers feel dissatisfied with marketing intermediaries" performance in promoting products. 1. intensive distribution- strategy seeks to distribute a product through all available channels in a trade area. An intensive distribution strategy usually suits items with wide appeal across broad groups of consumers. 2. selective distribution- strategy is when a firm chooses only a limited number of retailers in a market area to handle its line. 3. exclusive distribution- strategy is the practice when a producer grants exclusive rights to a wholesaler or retailer to sell its products in a specific geographic region.
