Lecture Basic Marketing: A global managerial approach - Chapter 11: Place and development of channel systems

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In this chapter you will understand how and why marketing specialists develop to make channel systems more effective. Understand the universal functions of marketing. Understand why some firms use direct channel systems while others rely on intermediaries and indirect systems. Understand how to develop co-operative relationships - and avoid conflict - in channel systems,...

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Nội dung Text: Lecture Basic Marketing: A global managerial approach - Chapter 11: Place and development of channel systems

Chapter 11: Place and Development of Channel Systems For use only with Shapiro, Wong, Perreault, and McCarthy text Copyright © 2002 McGraw-Hill Ryerson Limited
Exchange and Marketing Pots In very basic economic systems, each seller must meet directly with each buyer in order to Hats Baskets exchange something of value. As needs increase, the number of exchanges can soon become unmanageable for one person. Hoes Knives Ten exchanges are required when a central market is not used Exhibit 112 (A) 112 For use only with Shapiro, Wong, Perreault, and McCarthy text Copyright © 2002 McGraw-Hill Ryerson Limited
Marketing Facilitates Production and Consumption Production Sector Specialization and division of labour = heterogeneous supply capabilities Spatial Separation Discrepancies of Quantity Marketing Separation in Time needed to overcome Separation of Information discrepancies and separations Separation in Values Discrepancies of Assortment Separation of Ownership Consumption Sector Heterogeneous demand for form, task, time, place, and possession utility Exhibit 113 113 For use only with Shapiro, Wong, Perreault, and McCarthy text Copyright © 2002 McGraw-Hill Ryerson Limited
Model of Market-Directed Macro-Marketing System Many Individual Producers intermediaries Facilitators Perform universal marketing functions Monitoring by government(s) To overcome discrepancies and and public interest groups separations To create utility and direct flow of need-satisfying goods and services Many Individual Consumers Exhibit 114 114 For use only with Shapiro, Wong, Perreault, and McCarthy text Copyright © 2002 McGraw-Hill Ryerson Limited
Regrouping Activities Bulk- Bulk- Breaking Breaking Accumulating Accumulating Sorting Sorting Assorting Assorting 115 For use only with Shapiro, Wong, Perreault, and McCarthy text Copyright © 2002 McGraw-Hill Ryerson Limited
Strategic Decision Areas in Place Place objectives Customer Type of service channel level desired Direct Indirect Type of physical distribution facilities needed Degree of market Intermediaries/ How to manage exposure desired facilitators needed channels 116 For use only with Shapiro, Wong, Perreault, and McCarthy text Copyright © 2002 McGraw-Hill Ryerson Limited
Why a Firm May Want to Use Direct Channels Greater GreaterControl Control Lower LowerCost Cost Value ValueAdded AddedSubsequent Subsequentto to Production Process Production Process Direct DirectContact Contactwith with Customer CustomerNeeds Needs Some Some Quicker QuickerResponse Responseoror Reasons Reasons Change ChangeininMarketing MarketingMix Mix for for Choosing Choosing Direct Suitable SuitableIntermediaries Direct Channels Channels Not Intermediaries NotAvailable Available 117 For use only with Shapiro, Wong, Perreault, and McCarthy text Copyright © 2002 McGraw-Hill Ryerson Limited
Managing Channel Relationships Choosing the Type of Relationship Whole-Channel Product- Market Commitment Key Issues in Conflict Handling Channel Management Common Objectives Role of Channel Captain 118 For use only with Shapiro, Wong, Perreault, and McCarthy text Copyright © 2002 McGraw-Hill Ryerson Limited
Vertical Marketing Systems Type of channel Characteristics Vertical marketing systems Traditional Administered Contractual Corporate Amount of Little or Some to Fairly good Complete cooperation none good to good Economic One Control maintained None power and Contracts company by leadership ownership Typical channel of General Examples McDonald’s Florsheim “inde- Electric pendents” Exhibit 115 119 For use only with Shapiro, Wong, Perreault, and McCarthy text Copyright © 2002 McGraw-Hill Ryerson Limited
Market Exposure Selective Intensive What Market Exposure Fits the Marketing Objectives Exclusive 1110 For use only with Shapiro, Wong, Perreault, and McCarthy text Copyright © 2002 McGraw-Hill Ryerson Limited