Chapter 10 Place andDevelopment ofChannel Systems.ppt

Chapter 10 Objectives 1. Understand what product classes suggest about Place objectives. 2. Understand why some firms use direct channel systems while others rely on intermediaries and indirect systems. 3. Understand how and why marketing specialists develop to make channel systems more effective. 4. Understand how to develop cooperative relationships— and avoid conflicts—in channel systems. 5. Know how channel members in vertical marketing systems shift and share functions—to meet customer needs. 6. Understand the differences between intensive, selective, and exclusive distribution. 7. Understand the important new terms. Strategy Decision Areas in Place Why a Firm May Want to Use Direct Channels Regrouping Activities Managing Channel Relationships Vertical Marketing Systems Market Exposure Key Terms For use only with Perreault and McCarthy texts. ? The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill For use only with Perreault and McCarthy texts. ? The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill * Essentials of Marketing A Global-Managerial Approach William D. Perreault, Jr. E. Jerome McCarthy Chapter 10: Place and Development of Channel Systems When you finish this chapter, you should 10-2 Exhibit 10-1 10-3 Type of channel Type of physical distribution facilities needed How to manage channels Middlemen/ facilitators needed Degree of market exposure desired Indirect Direct Place objectives Customer service level desired Greater Control Lower Cost Value added subsequent to production process Direct contact with Customer Needs Quicker Response or Change in Marketing Mix Suitable Middlemen Not Available Some Reasons for Choosing Direct Channels 10-4 Manufacturer or producer Consumer Procter Gamble Del Monte Nissan Citibank Wholesaler Wholesaler Retailer Wholesaler Retailer Retailer 10-5 Exhibit 10-2 Four Examples of Basic Channels of Distribution for Consumer Products Accumulating Bulk- Breaking Assorting Sorting 10-6 Role of Channel Captain