wholesaling chapter 13. marketing channels what is a marketing channel? what is a marketing channel?...
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Marketing Channels- B2C Schwan’s Consumer General Motors Consumer Retailer Mansar Products Mars Wholesaler AgentTRANSCRIPT
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Wholesaling
Chapter 13
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Marketing Channels What is a marketing channel? Intermediaries
Transactional role Logistical role Facilitation role
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Marketing Channels- B2CSchwan’s
Consumer
General Motors
Consumer ConsumerConsumer
Retailer RetailerRetailer
Mansar ProductsMars
Wholesaler Wholesaler
Agent
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Marketing Channels- B2BIBM
Industrial User
Caterpillar
Industrial User
Industrial User
Industrial User
Industrial Distributor
Industrial User
Harkman Electric
Stake Fastener
Agent Agent
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Other Channel Terms Direct Marketing Channels
L.L. Bean Dual Distribution
Hallmark Strategic Channel Alliances
Kraft & StarbucksSource: www.hallmark.com
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Channel Intermediaries Merchant Wholesalers
Full-service General-merchandise Specialty-merchandise
Limited-service Rack jobbers Cash & carry Drop shippers Truck jobbers
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Agents & Brokers Characteristics Manufacturer’s Agents Selling Agents Brokers
Source: http://www.optimumscouting.com
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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
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Factors Determining Channels Choice
Environmental Factors Consumer Factors Product Factors Company Factors
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Considerations Target Market Coverage Buying Requirements Profitability
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Considerations Target Market Coverage
Intensive distribution Exclusive distribution Selective distribution
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Considerations Buyer Requirements
Information Convenience
Proximity 8-second rule
Variety Breadth and depth of products offered by
intermediary Attendant Services
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Considerations Profitability
How are margins divided?
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Types of Conflict Vertical conflict
Disintermediation Profit margin distribution Attention given to products
Horizontal conflict Infringement upon market area Different retailers selling same brand
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Cooperation Channel Captain
Economic influence Expertise influence Identification
influence Legitimate
influence
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Legal Issues Dual distribution
Too much power? Exclusive Dealing Tying Arrangements