MANAGING MARKETING CHANNELS
OF DISTRIBUTION AND
LOGISTICS
Marketing
Management
Marketing 5341
The variety of terms used for marketing
intermediaries that vary in use in consumer
and business markets
Intermediaries minimize transactions and
the cost of distribution for producers and
customers
Marketing channel intermediaries perform
three functions, each consisting of different
activities
Common marketing channels for consumer
offerings by the kind and number of
intermediaries
Common marketing channels for business
offerings by the kind and number of
intermediaries
CHANNEL STRUCTURE & ORGANIZATION
ELECTRONIC & DIRECT MARKETING CHANNELS;
MULTICHANNEL MARKETING

Electronic Marketing Channels

Direct Marketing Channels

Multichannel Marketing
Consumer electronic marketing channels
are similar to those for consumer and
business offerings
CHANNEL STRUCTURE & ORGANIZATION
DUAL DISTRIBUTION &
STRATEGIC CHANNEL ALLIANCES

Dual Distribution

Strategic Channel Alliances
HELP YOUR CHILD FEEL BETTER WITH
TRIAMINIC® PRODUCTS AND A REDBOX
MOVIE RENTAL
The Top Five
Reasons for Selling Through Distributors
1.
2.
3.
4.
5.
Customers demand it.
Market access.
Lower marketing and selling expenses.
Distributors perform necessary functions.
Reduced collection problems.
Functions performed by independent
wholesaler types
Three types of vertical marketing systems:
corporate, contractual (most popular), and
administered
McDonalds and H&R Block
What vertical marketing system does each use?
CHANNEL CHOICE AND MANAGEMENT
CHANNEL CHOICE CONSIDERATIONS

Target Market Coverage
• Intensive Distribution
• Exclusive Distribution
• Selective Distribution
CHANNEL CHOICE AND MANAGEMENT
CHANNEL CHOICE CONSIDERATIONS

Profitability
• Margins Earned
• Channel Costs

Global Dimensions of
Marketing Channels
USING MARKETING DASHBOARDS
Channel Sales and Profit at
Charlesburg Furniture
CHANNEL CHOICE AND MANAGEMENT
CHANNEL RELATIONSHIPS

Legal Considerations
• Dual Distribution
• Tying Arrangements
• Vertical Integration
• Refusal to Deal
• Exclusive Dealing
• Resale Restrictions
The Clayton Act and Sherman Act place
legal restrictions on specific marketing
channel strategies and practices
SIGNIFICANCE OF SUPPLY CHAIN
AND LOGISTICS MANAGEMENT
KEY CONCEPTS

Logistics – getting the right amount of
the right products to the right place at the
right time at the lowest possible cost.

Logistics Management – the practice
of organizing the cost-effective flow of
raw materials, in-process inventory,
finished goods from the point of origin
to the point of consumption to satisfy
customers requirements.
Relating logistics management and supply
chain management to supplier networks and
marketing channels
The automotive supply chain includes
thousands of firms that provide the 5,000 or
so parts in a typical car
Supply chain managers balance total
logistics cost factors against customer
service factors
Advantages and disadvantages of five
modes of transportation
KEY LOGISTICS FUNCTIONS
IN A SUPPLY CHAIN
TRANSPORTATION

Railroads
• Intermodal Transportation
• Piggy-Back or Trailer
on Flatcar (TOFC)
• Containers
KEY LOGISTICS FUNCTIONS
IN A SUPPLY CHAIN
TRANSPORTATION

Motor Carriers

Air Carriers and
Express Companies

Freight Forwarders/
Express Companies
KEY LOGISTICS FUNCTIONS
IN A SUPPLY CHAIN
TRANSPORTATION

Pipelines

Water
KEY LOGISTICS FUNCTIONS
IN A SUPPLY CHAIN
WAREHOUSING AND MATERIALS HANDLING

Storage Warehouses

Distribution Centers

Materials Handling