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Managing Marketing Channels
Instructor: Safaa S. Y. Dalloul
Principles of MarketingUnit 9
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Do You think we have education channel in our class??
IF YES DETERMINE IT? By
answer the following
questions:
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1. What are the elements of this channel?
a. Is all element an important?
b. Can we eliminate one or two elements?
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Thinking
2. Why we need channel? What are the
benefits of it?
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3. Describe the process of the channel?
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We can select any intermediary regardless
who is it “Agree or Disagree”
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Elements of Lecturehttp://safaadalloul.wordpress.com
Defining Marketing Channel
Place Element of the Marketing Mix
Marketing Channel
Marketing Intermediaries
Channel Structure Decisions
Vertical Marketing Systems
Channel Chose and Management
Defining Market Channelhttp://safaadalloul.wordpress.com
It consists of individual and firm involved in the
“process” of marketing product or serves available for
use or consumption by consumer or industrial user.
There are a relationship
between marketing channel
and place
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Place Element of the Marketing Mix
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Place is concerned with making products available in
the right quantities and locations when customers want
them.
What is the intermediary?
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It is person or electronic means
who are connecting between
producer and end user
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There are different
intermediaries?
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Marketing Intermediarieshttp://safaadalloul.wordpress.com
Middleman is any intermediary between manufacturer
and end user market.
Agent or broker is any intermediary with legal authority
to act on behalf of the manufacturer.
Retailer is an intermediary who sells to consumer.
Marketing Intermediarieshttp://safaadalloul.wordpress.com
Wholesaler is an intermediary who sells to other
intermediaries, usually to retiles.
Distributor is an inaccurate term usually used to
describe intermediaries who perform a variety of
distribution functions, include selling, maintaining
inventories.
What are the benefits of
intermediary
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Value created by intermediaries:
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Improve exchange efficiency
Perform marketing functions
Quantity discrepancies
Marketing Channel Functionhttp://safaadalloul.wordpress.com
Marketing channel function performed by
intermediaries:
Transactional function
Logistical function
Facilitating function
Types of Channelshttp://safaadalloul.wordpress.com
Types of Channelshttp://safaadalloul.wordpress.com
Dual Distributionhttp://safaadalloul.wordpress.com
It occurs when an organization distributes its product
through two or more different types of marketing
channels which typically compete for the same target
market.
It may cause conflict with channel intermediaries
Vertical Marketing Systemshttp://safaadalloul.wordpress.com
They are professionally managed and centrally
coordinate. Marketing channel is designed to achieve
channel economic and maximum marketing impact a
marketing channel that a single channel member
coordinates.
Types of vertical marketing systems
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A corporate system is the combination of successive
stage of production and distribution under single
ownership.
Types of vertical marketing systems
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Contractual: under a contractual vertical marketing
system, independent production and distribution firms
integrate their effort on contractual basis to obtain
greater functional economic and marketing impact than
they could achieve alone.
Types of vertical marketing systems
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Administered in comparison: administered vertical
marketing system achieve coordination at successive
stage of production and distribution by the size and
influence of one channel member rather than through
ownership.
Factors Affect Channel Chose and Management
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Channel Chose and Management
Factors
Culture
Environment
Product
Company
Factors to Consider When Selecting Specific Intermediaries
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Channel Chose and Management
Reach their target market.
• Have a good reputation.
Handle distribution functions efficiently.• Order large quantities.
Pay invoices quickly.
Factors to Consider When Selecting Specific Intermediaries
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Channel Chose and Management
Display and promote merchandise well.
• Have a good location and professional salespeople.
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