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Wholesaling

Wholesaling. Chapter 13. Marketing Channels. What is a marketing channel? Intermediaries Transactional role Logistical role Facilitation role. Marketing Channels- B2C. Schwan’s. General Motors. Mansar Products. Mars. Agent. Wholesaler. Wholesaler. Retailer. Retailer. Retailer.

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Wholesaling

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  1. Wholesaling Chapter 13

  2. Marketing Channels • What is a marketing channel? • Intermediaries • Transactional role • Logistical role • Facilitation role

  3. Marketing Channels- B2C Schwan’s General Motors Mansar Products Mars Agent Wholesaler Wholesaler Retailer Retailer Retailer Consumer Consumer Consumer Consumer

  4. Marketing Channels- B2B IBM Caterpillar Harkman Electric Stake Fastener Agent Agent Industrial User Industrial Distributor Industrial User Industrial User Industrial User Industrial User

  5. Other Channel Terms • Direct Marketing Channels • L.L. Bean • Dual Distribution • Hallmark • Strategic Channel Alliances • Kraft & Starbucks Source: www.hallmark.com

  6. Channel Intermediaries • Merchant Wholesalers • Full-service • General-merchandise • Specialty-merchandise • Limited-service • Rack jobbers • Cash & carry • Drop shippers • Truck jobbers

  7. Agents & Brokers • Characteristics • Manufacturer’s Agents • Selling Agents • Brokers Source: http://www.optimumscouting.com

  8. Channel Partnerships • Vertical Marketing Systems • Corporate • Forward integration: Sherwin-Williams • Backward integration: Kroger • Contractual • Wholesaler-sponsored Voluntary Chains • Retailer-sponsored Cooperatives • Franchising • Administered • Administered Vertical Marketing Systems

  9. Channel Partnerships • Collaborative use of information and open communication • Levi Strauss and Modell’s Sporting Goods

  10. Factors Determining Channels Choice • Environmental Factors • Consumer Factors • Product Factors • Company Factors

  11. Considerations • Target Market Coverage • Buying Requirements • Profitability

  12. Considerations • Target Market Coverage • Intensive distribution • Exclusive distribution • Selective distribution

  13. Considerations • Buyer Requirements • Information • Convenience • Proximity • 8-second rule • Variety • Breadth and depth of products offered by intermediary • Attendant Services

  14. Considerations • Profitability • How are margins divided?

  15. Global Market • Must consider intermediaries in foreign markets

  16. Types of Conflict • Vertical conflict • Disintermediation • Profit margin distribution • Attention given to products • Horizontal conflict • Infringement upon market area • Different retailers selling same brand

  17. Cooperation • Channel Captain • Economic influence • Expertise influence • Identification influence • Legitimate influence

  18. Legal Issues • Dual distribution • Too much power? • Exclusive Dealing • Tying Arrangements

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