Service Outputs LEARNING OBJECTIVES Explain the role of service outputs in the distribution strategy As with each element of the marketing mix, different segments of customers have different needs with regard to place, or distribution. Service outputs offer a way to focus on the unique needs of a target buyer and plan for those in the distribution strategy. Service outputs are the productive outputs of the marketing channel that consumers value and… Read More »role of service outputs in the distribution strategy

Third-Party Sales LEARNING OBJECTIVES Describe common approaches to successful third-party sales Introduction Throughout the channel structure there are a number of points where sales may occur. The most straightforward of these is the direct channel, in which the producer sells directly to the consumer. In every other structure, multiple sales occur—from producer to wholesaler, from wholesaler to retailer, from retailer to buyer. In cases involving an intermediary, there is a third-party… Read More »Third-Party Sales

Optimizing Channels LEARNING OBJECTIVES Explain how marketers can optimize their channel strategy Introduction Geico didn’t simply find itself owning the online, direct channel. It analyzed its customer needs and competitors’ positions and chose a strategy to accelerate sales growth: Geico defined and managed its channel strategy. The Channel Management Process The channel management process contains five steps. 1. Analyze the Consumer We begin the process of channel management by answering two questions.… Read More »how marketers can optimize their channel strategy

Introduction to Managing Distribution Channels What you’ll learn to do: explain how channels affect the marketing of products and services By March 2014, most Americans had noticed the Geico gecko; some had fallen in love with him. Regardless of buyers’ feelings about the little lizard, by 2014 enough had purchased auto insurance from Geico through its online sales portal to change the landscape of the insurance industry. Fortune magazine reported on the company’s success:… Read More »how Distribution Channels affect the marketing of products and services

Supply Chain and Marketing Channels The supply chain and marketing channels can be differentiated in the following ways: The supply chain is broader than marketing channels. It begins with raw materials and delves deeply into production processes and inventory management. Marketing channels are focused on bringing together the partners who can most efficiently deliver the right marketing mix to the customer in order to maximize value. Marketing channels provide a more… Read More »Supply Chain and Marketing Channels

What Is a Supply Chain? We have discussed the channel partners, the roles they fill, and the structures they create. Marketers have long recognized the importance of managing distribution channel partners. As channels have become more complex and the flow of business has become more global, organizations have recognized that they need to manage more than just the channel partners. They need to manage the full chain of organizations and transactions… Read More »What Is a Supply Chain?

Marketing Channels vs. Supply Chains LEARNING OBJECTIVES Differentiate between marketing channels and the supply chain What Is a Supply Chain? We have discussed the channel partners, the roles they fill, and the structures they create. Marketers have long recognized the importance of managing distribution channel partners. As channels have become more complex and the flow of business has become more global, organizations have recognized that they need to manage more than… Read More »Marketing Channels vs. Supply Chains

The Role of Intermediaries LEARNING OBJECTIVES Explain the role of intermediaries such as wholesalers in the distribution channel Introduction While the retail channel is most familiar to students, wholesalers play an important role as intermediaries. Intermediaries act as a link in the distribution process, but the roles they fill are broader than simply connecting the different channel partners. Wholesalers, often called “merchant wholesalers,” help move goods between producers and retailers. For example,… Read More »role of intermediaries such as wholesalers in the distribution channel

Channel Structures LEARNING OBJECTIVES Differentiate between direct, retail, wholesale, and broker (agent) channels While channels can be very complex, there is a common set of channel structures that can be identified in most transactions. Each channel structure includes different organizations. Generally, the organizations that collectively support the distribution channel are referred to as channel partners. The direct channel is the simplest channel. In this case, the producer sells directly to the consumer. The… Read More »Channel Structures : direct, retail, wholesale, and broker (agent) channels

Distribution Objectives LEARNING OBJECTIVES Explain what channels of distribution are and why organizations use them Introduction The distribution strategy supports company-level objectives, as well as marketing objectives. Typically, distribution approaches support company-level objectives related to growth, as in the example of Monster Energy, or profitability, since distribution can improve company efficiencies. Think about your perspective as a buyer. When you need food, you most likely shop at a grocery store. You could… Read More »Distribution Objectives