Managing Marketing Channels Instructor: Safaa S. Y. Dalloul Principles of Marketing Unit 9

Managing Marketing Channels

Instructor: Safaa S. Y. Dalloul

Principles of MarketingUnit 9

http://safaadalloul.wordpress.com

Do You think we have education channel in our class??

IF YES DETERMINE IT? By

answer the following

questions:


1. What are the elements of this channel?

a. Is all element an important?

b. Can we eliminate one or two elements?


Thinking

2. Why we need channel? What are the

benefits of it?


3. Describe the process of the channel?


We can select any intermediary regardless

who is it “Agree or Disagree”


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


Place Element of the Marketing Mix


Place is concerned with making products available in

the right quantities and locations when customers want

them.

What is the intermediary?


It is person or electronic means

who are connecting between

producer and end user


There are different

intermediaries?


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


Value created by intermediaries:


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


A corporate system is the combination of successive

stage of production and distribution under single

ownership.



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.



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



Factors

Culture

Environment

Product

Company

Factors to Consider When Selecting Specific Intermediaries



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



Display and promote merchandise well.

• Have a good location and professional salespeople.


Documents

Managing Marketing Channels Instructor: Safaa S. Y. Dalloul Principles of Marketing Unit 9