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transactional function
buying: purchasing products for resale
selling: contacting potential customers, promoting products, and seeking orders
risk-taking: assuming business risks in the ownership[ of inventory
logistical function
selection: putting together a selection of products from several different sources
storing: assembling and protecting products at a convenient location
sorting: purchasing in large quantities and dividing into smaller amounts
transporting: physically moving a product to customers
facilitating function
financing: extending credit to customers
marketing info and research: providing info to customers and suppliers, including competitive conditions and trends
consumer benefits from various utilities provided by marketing channels
time
place
form
information
possession
channel layer
layer of intermediaries who perform some work in bringing product and its ownership closer to final buyer
number of intermediary levels indicate length of a channel
direct marketing channel
no intermediary levels
manufacturer selling directly to consumers
indirect marketing channel
one or more intermediaries
dual distribution
firm reaches different buyers by using 2 or more different types of channels for the same basic product
multichannel marketing
blending of different comms and delivery channels that mutually reinforcing in attracting, retaining, and building relationships with consumers
transactional websites
promotional websites
cross channel shopper
consumers research online and purchase at a retail store
desire to compare among different retailers
need for more info than is in store
ease of comparing options
omni channel retailing
seamless experience among all available shopping channels
online, physical store, phone
ex: customer sees ad on facebook → goes to website
customer visit website and browse products - finds t shirt wants to buy, add to cart
customer comes to store to try out t shirt - likes t shirt but colour sold out
manufacturer directly ship t shirt to house
multichannel vs omnichannel
multichannel branches out
person → store or web or mobile or social
omnichannel makes a circle
person → store and web and social and mobile all connected
vertical marketing system
distributation channel strucutre in which producers, wholesalers, and retailers act as a unified network
one channel member owns the others, has contacts with them or wields so much power that all channel members cooperate
corporate VMS
coordination and conflict management are attained through common ownership at different levels of the channel
ex: INDITEX - owns Zara, mashimo dutti, bershka
world’s largest fashion retailers
contractual VMS
attained through contractual agreements among channel members
ex: ford and its network of independent franchised dealers
administered VMS
leadership assumed by one or a few dominant channel members
ex: procter & gamble
factors affecting channel choice
market
geographic concentration
number of potential customers
type of market
order size
product
technical factors
perishability
unit value
product life cycle
company
financial resources and ability of management
desire for channel control
channel design considerations
target market coverage
intensive, exclusive, or selective distribution
satisfying buyer requirements
info, convenience, variety, pre/ post sale services
profitability
distribution, ads, selling expenses
intenstive distribution
ideal for producers of convenience products and common raw materials
strat = stock their products in as many outlets as possible
selective distribution
use of more than one, but fewer than all of the intermediaries who are willing to carry a company’s decision
ex: best buy
exclusive distribution
producers limit number of intermediaries handling their products
producer gives only a limited number of dealers the exclusive right to distribute its products in their territories
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