Chapter 12 Marketing Channels Retrieved from http techmarketingbuffalo

Chapter 12: Marketing Channels Retrieved from http: //techmarketingbuffalo. com/walmart-logo-histo -download/ Brooke Hodges, Minh Phan, Sam Valencia, Scott Williams

Topic Outline • • Supply Chains Marketing Channels Channel Behavior and Organization Channel Functions Channel Design Decisions Channel Management Decisions Public Policy and Distribution Decisions

Supply Chains A chain of resources and activities that create customer value Upstream Raw Materials, Suppliers, Components, Parts, Information, Finances. Downstream Marketing channels, Distribution channels, Retailers, Wholesalers

Marketing Channels All groups that contribute to creating a product or service and bringing it to market.

Types of Marketing Channels Direct Marketing Channel Indirect Marketing Channel

Channel Behavior and Characteristics • Customer/Supplier Partnerships • Interdependent • Specialized Retrieved from http: //massrealestatelawblog. com/2011/08/22/courtupholds-oral-handshake-deal-in-land-swap/

Channel Behavior and Organization • • • Vertical Marketing Systems (VMS) Conventional Marketing Systems (CMS) Horizontal Marketing Systems Producer Wholesaler Retailer Consumer CMS Consumer VMS

Channel Behavior and Organization • • Multichannel distribution system Disintermediation

Walmart's Distribution Channel Model Supplier Supplier Manufacturers/ Suppliers of Products sold by Walmart Manufacturers of Walmart's store brands Walmart Distribution Centers Walmart Stores Customers

Channel Design Decisions • Marketing Channel Design o Analyzing Consumer Needs o Setting Channel Objectives o Identifying Major Alternatives o Evaluating the Major Alternatives Retrieved from http: //www. etlsolutions. com/sevenessential-planning-components-of-a-datamigration-project/

Choosing Number of Marketing Intermediaries Three Distribution Strategies • • • Intensive Distribution Exclusive Distribution Selective Distribution Retrieved from http: //designbuddy. com/how-self-employed-graphicdesigners-can-avoid-burnout

Channel Management Decisions Selecting, managing, & motivating individual channel members and evaluating their performance over time. Managing & Selecting • • • Years in business Other lines carried Location Growth & profit Cooperativeness Motivating • • Partner relationship High-tech partnership Evaluating • • Regularly check Cooperation Services Needs of partners

Public Policy & Distribution Decisions • Exclusive Distribution: seller allows only certain outlets • Exclusive Dealings: seller requires that these dealers not to carry its products handle competitor’s products • Exclusive Territorial Agreements: producer or seller • Trying Agreements: dealer must sell all or most of the limit dealings in a given area product line

Logistics and Supply Chain Management • • • Better service and Lower prices Targeted level of service at the least cost Warehousing, Inventory management, Transportation, Logistics information management

Group Reflection • • • Well Planned Marketing Channel Create Partnerships Efficient Distribution Lower Prices o Profitable o

You’ve got Questions? ? ? . . . We’ve got Answers

References Kotler, P. , & Armstrong, G. (2014). Principles of Marketing (15 th ed. , pp. 349 -353). Upper Saddle River, NJ: Pearson Education Inc. MWPVL International Inc. , (2014). The Wal Mart Distribution Center Network in the United States. Leadership in Supply Chain and Logistics Consulting. Retrieved on March 25, 2014 from http: //www. mwpvl. com/html/walmart. html (2014). Walmart Logistics. Retrieved from http: //corporate. walmart. com/our-story/our-business/logistics