Chapter 12: Marketing Channels

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

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

3. 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

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

5. Types of Marketing Channels Direct Marketing Channel Indirect Marketing Channel

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

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

8. Channel Behavior and Organization • Multichannel distribution system • Disintermediation

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

10. Channel Design Decisions • Marketing Channel Design • Analyzing Consumer Needs • Setting Channel Objectives • Identifying Major Alternatives • Evaluating the Major Alternatives Retrieved from http://www.etlsolutions.com/seven-essential-planning-components-of-a-data-migration-project/

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

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

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

14. 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

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

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

17. References Kotler, P., & Armstrong, G. (2014). Principles of Marketing (15th 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