Chapter Questions
• What is a marketing channel system and
value network?
• What work do marketing channels perform?
• What decisions do companies face in
managing their channels?
• How should companies integrate channels
and manage channel conflict?
• What is the future for e-commerce?
15-1
Marketing Channels
Sets of interdependent organizations
involved in the process of making a
product or service available for use
or consumption.
15-2
Examples of Channels
• Dell (DTC)
• Avon
• Canada Post
• Grainger (auto parts network)
• Coca-cola (bottlers)
• McDonald’s restaurants (franchisee)
15-3
Increasing Efficiency
15-4
Consumer Marketing Channels
15-5
Identifying Channel Alternatives
Types of
intermediaries
Number of
intermediaries
Terms and
responsibilities
15-6
Channel Service Outputs
Lot size
Waiting/delivery time
Spatial convenience
Product variety
Service backup
15-7
Wholesaling Functions
• Selling and promoting
• Buying and
assortment building
• Bulk breaking
• Warehousing
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•
•
•
•
Transportation
Financing
Risk bearing
Market information
Management services
and counseling
16-8
Major Wholesaler Types
Merchant
Full-service
Limited-service
Brokers and agents
Manufacturers
Specialized
16-9
Wholesalers’ Marketing Decisions
Target market
Product assortment
Price
Promotion
Place
16-10
Number of Intermediaries
Exclusive
Selective
Intensive
15-11
Market Logistics Planning
• Deciding on the company’s value
proposition to its customers
• Deciding on the best channel design and
network strategy
• Developing operational excellence
• Implementing the solution
16-12
Transportation Factors
•
•
•
•
•
•
•
Speed
Frequency
Dependability
Capability
Availability
Traceability
Cost
16-13