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Chapter 15 Channels of Distribution: Conflict, Cooperation, and Management Sommers  Barnes Ninth Canadian Edition Presentation by Karen A. Blotnicky Mount Saint Vincent University, Halifax, NS Copyright © 200 1 by McGraw-Hill Ryerson Limited

Chapter Goals ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

The Distribution Function ,[object Object],[object Object],[object Object],[object Object]

Distribution Channels ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],SALES SPECIALIST FOR PRODUCERS PURCHASING AGENT FOR BUYERS I N T E R M E D I A R Y The Distribution Functions

Designing the Channel ,[object Object],[object Object],[object Object],[object Object],[object Object]

Specify the role of distribution within the marketing mix Select type of distribution channel Determine appropriate intensity of distribution Choose specific channel members The Well-Designed Distribution Strategy

Selecting the Type of Channel ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Major Distribution Channels ,[object Object],[object Object],[object Object],[object Object],[object Object]

ULTIMATE CONSUMERS PRODUCERS OF CONSUMER GOODS Retailers Retailers Retailers Retailers Merchant wholesalers Merchant wholesalers Agents Agents Consumer Channels

BUSINESS USERS PRODUCERS OF BUSINESS GOODS Merchant wholesalers (industrial distributors) Agents Agents Merchant wholesalers (industrial distributors) Business Channels

ULTIMATE CONSUMERS OR BUSINESS USERS PRODUCERS OF SERVICES Agents Service Channels

Multiple Distribution Channels ,[object Object],[object Object],[object Object],[object Object]

Vertical Marketing Systems (VMS) ,[object Object],[object Object],[object Object],[object Object]

INTENSIVE SELECTIVE EXCLUSIVE Distribution through every reasonable outlet in a market Distribution through multiple, but not all, reasonable outlets in a market Distribution through a single wholesaling middleman and/or retailer in a market Intensity of Distribution

Considerations in Channel Choice ,[object Object],[object Object],[object Object],[object Object]

Conflict and Control in Channels ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Producer/Retailer Conflict ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],More Complaints

Legal Considerations ,[object Object],[object Object],[object Object],[object Object]

Channels for Entering Foreign Markets ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

More Foreign Market Entry Channel Options ,[object Object],[object Object],[object Object],[object Object],[object Object]

The Changing Face of Distribution ,[object Object],[object Object],[object Object]

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