MARKETING CHANNELS

Presented by

Diego Ruiz

Jeffery Botwinick

Karina Ramos

Yanmi Wang

Agenda

Marketing Channel

Levels of Channel

Channel Design

Types of Marketing System

Logistics

• A set of interdependent organizations

• Making products available to consumers or businesses.

• Creating greater efficiency on making goods available to target markets.

What is a Marketing Channel?

Producer

Channel

Customer

The Importance of Marketing Channel

Each channel member adds value

Connect producers with customers

Complete transactions

Manufacturer

Manufacturer

Manufacturer

Customer

Customer

Customer

Number of contacts without a distributor

Manufacturer

Manufacturer

Manufacturer

Customer

Customer

Customer

Distributor

Number of contacts with a distributor

Marketing Channel Levels

no intermediary levels

company sells directly to consumers

one or more intermediary levels

Direct Marketing Channel

Indirect Marketing Channel

Wholesaler

Producer Producer Producer

Consumer

RetailerRetailer

Consumer Consumer

Channel 1

Channel 3

Channel 2

Manufacturer’s

Representatives

Producer Producer Producer

Business Distributo

r

Business Customer

Channel 4

Channel 6

Channel 5

Business Customer

Business Customer

Business Distributo

r

Consumer Marketing Channels

Business Marketing Channels

Types of Marketing System

One or more independent member

Seeking to maximize its own profits

no much control over other members

All members acting as a unified system

One channel member owns the others

Dominated by the producer the wholesaler, or the retailer

Conventional distribution channel

Vertical marketing system

Types of Marketing System

Two or more companies at one level

Accomplish more than any one company could alone

A single firm sets up two or more marketing channels

To reach one or more customer segments

Horizontal Marketing Systems

Multi-channel distribution channel

Marketing channels

Consumer marketing channels

Business marketing channels

Taylor FarmsPRODUCE

R

WalMartRETAILER

BuyersCONSUME

R

SyscoBUSINESS

DISTRIBUTOR

Applebee'sBUSINESS

CUSTOMER

Marketing Channel Design

Analyzing Customer Needs Nearby locations Buy in person, by phone or online Range of assortments or specialization Add-on services

Setting Channel Objectives Segments to serve Nature of the company/products Competitors Environment

Marketing Channel Design

Identifying Major Alternatives Types of intermediaries Number of intermediaries

Intensive distribution Exclusive distribution Selective distribution

Responsibilities of Channel Members

Evaluating Major Alternatives Economic criteria Control issues Adaptability criteria

Channel Considerations Does the channel fit the target

customers?

Is the channel going allow for profit?

How many intermediaries will be involved?

How will each add value?

Marketing Logistics

Warehousing Taylor Farm has storage warehouses, and

distribution centers. Produce has a limited shelf life.

Distributions centers need to fill orders efficiently to ensure fresh produce.

Taylor Farms operates nine Rapid deployment Centers (RDCs) through the country.

Inventory Management

Balance inventory

Affect customer satisfaction

Product availability

Ability to track product

Transportation

Choice of carriers affect product pricing Affect the condition of goods Delivery performance

Logistics Information Management

Companies manage their supply through information.

Channels share information Customer transactions Billing Shipment & inventory Customer data

Motivating Intermediaries Opportunity for profit Price, terms, conditions Support and  training Products line future Attractive brand Co-marketing

(McCarthy, 2013)

Reflection

Marketing channels connect producers to customers.

There are two major types of channel Direct and indirect

Channels are opportunities for value add in a target market

The complexities that make a product available for consumers.

References

Kolter, P. & Armstrong, G. (2014)  Principles of Marketing. Upper Saddle NJ:Pearson

Mckarthy, Brian K. (2013 February 24). Marketing Channels of Distribution. [Video file]. Retrieved from https://www.youtube.com/watch?v=aOT4Wnuv3E8

Hegedus World. (2012). Taylor Farms[Video file]. Vemo. http://vimeo.com/43966985