marketing management(marketing ) - distribution／place (marketing channels)

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1、MarketingManagement(Marketing360)-Distribution／Place(MarketingChannels)MarketingManagement(Marketing360)ProfessorKurtCarlsonDistribution/Place(MarketingChannels)AgendaThefunctionofchannelsChanneldesignDepthBreadthRelationshipswithchannelmembersWhatareMarke

2、tingChannels?Setsofinterdependententitiesintermediariesinvolvedintheprocessofmakingaproductorserviceavailableforuseorconsumption.Inmovinggoodsfromproducerstoconsumers,channelsovercomegapsin:timeplacepossessionMarketingChannelsChannelsexistwhentheyaremoreef

3、ficientthandirectdistribution.#ofrelationships=M*C=D*M+D*C=D(M+C)D(M+C)<M*Cifandonlyif(D<M)and(D<C)MMMCCCDirectdistribution(zerolevelchannel)NumberofRelationships=9CCCPureintermediation(one-levelchannelillustrated)NumberofRelationships=6DMMMGeneri

4、cChannelFunctionsAssortment(e.g.,grocerystores)Customization(e.g.,interiorleather)Financing(e.g.,HomeDepot)LotSizingService/RepairPartsStorage(EnsureAvailability)TransportationProductInformationPromotion&DemandGenerationChannelDesign:DepthIssueisn’twhe

5、therthesefunctionswillbedone.Itiswhowilldothem!TotheextentthatthemanufacturerdoesthemItscostsgoupWhensomeofthemareshiftedtointermediariesManufacturer’scostsarelower,butintermediarieswilladdtheirchargesIfintermediariesaremoreefficientthanmanufacturer,prices

6、shouldbelowerthanunderdirectdistributionAllelseequal,consumerswillpurchasefromthesystemgivingthelowestprice,whichexplainswhyefficiencyisnecessaryforchannelstoexistChannelFlowFigureTheDirectChannelProducersellsdirectlytoconsumer.Examples:PurityIceCream,TheP

7、leasantCompany,andL.L.BeanEfficiencyAgnosticReasonstoGoDirectCapturemarginandownthecustomerImportantifyouwanttogrowaconceptintosomethingbigThePleasantCompanyStartedbyPleasantT.Rowland,withthemission:“toeducateandentertaingirlswithhighqualityproductsandexpe

8、riencesthatbuildself-esteemandreinforcepositivesocialandmoralvalues.”TargetMarket:7-12yearoldgirlsStartedwithbookswithhistoricaltheme.Adayinthelifeof…Branchedintodolls,clothing,lifestyleproducts,newslettersto