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CHANNELS
Marketing channel: system of marketing
institutions that promotes the physical flow of
goods and services, along with ownership title,
from producers to consumer or business user;
also called a distribution channel
STRATEGIC IMPLICATIONS: THE ROLE OF MARKETING
CHANNELS IN MARKETING STRATEGY
Figure 13.2:
Alternative
Marketing
Channels
Direct Selling
Direct channel: marketing channel that moves
goods directly from a producer to ultimate user
Direct selling: strategy designed to establish
direct sales contract between producer and final
user
Dell
Dell Computer:
A Direct Seller
of Computers
DUAL DISTRIBUTION
Dual distribution:
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CHANNEL STRATEGY DECISIONS
Complex Standardized
Expensive Inexpensive
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VERTICAL MARKETING SYSTEMS
Corporate marketing system:
a VMS in which a single
Corporate owner operates at each stage
Systems in its marketing channel
Example:
VERTICAL MARKETING SYSTEMS
Administered marketing
system: VMS that achieves
channel coordination when a
Administered dominant channel member
Systems exercises its power
Example:
CHANNEL MANAGEMENT AND
LEADERSHIP
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Transportation
Common Private carriers do
carriers move not offer services
freight via all for hire, but provide
modes of transportation
transportation for
the general public services solely for
internally generated
Contract Classes of
carriers do not freight
Carriers
serve the general
public
Transportation
Railroads Freight
Motor Forwarders and
Carriers Supplemental
Water Major Modes of
Carriers
Carriers Transportation Intermodal
Pipelines Coordination
Air Freight
FedEx