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Marketing 6621
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Channel Management
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A path through which goods and services flow in one direction (from vendor to the consumer), and the payments generated by them that flow in the opposite direction (from consumer to the vendor).
Channel
The total number of channel members in a channel of distribution
Channel length
Businesses or individuals who assist in moving goods and services from the producer to the consumer
Channel members
Distribution Patterns
A distribution pattern in which a producer sells a product through just one middle man in a geographic area
Exclusive Distribution
A producer sells a product through a limited number of middlemen in a geographic area.
Selective Distribution
Producer sells a product through every available wholesaler and retailer in a geographic area where consumers might look for it
Intensive Distribution
Channel Functions
Companies rely on market research to determine their target markets’ needs and wants.
Providing Marketing Information
Costs and responsibilities can be shared. Promoting Products
Offering to deliver and install products. Negotiating with Customers
Selling large quantities of products to wholesalers and retailers
Reducing Discrepancies
Work together to finance activities to become more effective
Financing and Risk-taking
Horizontal vs. Vertical Conflict
Horizontal Conflict: Occurs between channel members at the same level Ex: two retailers selling pet supplies compete to sell to the same target market
Vertical Conflict: Occurs between channel members at different levels within the same channel Producers and wholesalers or producers and retailers