marketing channel decisions

marketing channel design
analyzing customer needs, setting channel objectives, identifying major channel alternatives and evaluating alternatives to design effective mktg channels
intensive distribution
stocking products in as many outlets as possible
-used for conventional goods
exclusive distribution
giving limited # of dealers exclusive right to distribute company’s goods
-sepcialty goods
selective distribution
use more than one but less than all intermediaries that are willing to carry company’s products
-durable goods
marketing channel management
selecting, managing and motivating individual channel members and evaluating performance
marketing logisitics
(physical distribution)
planning, implementing, and controlling physical flow of materials, final goods and related infer from points of origin to point of consumption to meet customer requirements at profit
logistic functions
-minimize cost of attaining objectives
warehousing, inventory mgmt, transportation, logistic info. mgmt
warehousing
store goods for moderate to long periods of time
inventory management
managers must maintain balance of carrying too little and too much inv.
**keep track of inv.
-RFID “smart tag” : companies know exactly where products are at all times
transportation
choice of transportation affects pricing of products, delivery performance and condition of goods upon arrival
-modes: truck, rail, pipes, air, internet
logistic info management
IT/computer systems that help keep track of supply chain
-channel partners link up to share info and make better joint logistic decisions
disintermediation
eliminating mktg intermediaries from a channel
ex: dvd rental store –> replaced by new radical intermediaries (netflix)
marketing channel decisions
design, mgmt, logistics
key trends in retailing
-growth of non-store retailing (Amazon)
-retail convergence and rise of mega-retailers
-global expansion of major retailers (walmart)
-growing importance of tech. (apple)
-retail stores as communities and hangout places; imp of experimental retailing