Card Set Information
A set of independent organizations involoved in the process of making a product or service available to its intended market.
Multi-Firm Marketing Channels bring companies together that...
1) Perform independent activites well through specialization
2) Work well together in a system.
3) Can protect the system from rival systems-thus creating a comopetitive advantage.
Multi-Firm Marketing Channel: You can expect...
Increase availability of goods to potential customers.
Better satisfy the customer.
Encourage promotional push.
Allows for transfer of information betweel the FIRM<->MARKET.
Increases Cost Effectiveness.
Allows for Flexibility.
Helps create a Compoetitive Advantage
Reduces risk to the firm
Channel of Distribution
Consists of interdependent entities that are aligned for the purpose of transferring possession of a product from producer to consumer or business user.
Channel Alternatives (Direct) Producer <->Consumer
Facilitated by interactive communication methods.
Catalog; TV; Internet; Telephone; Door-to-Door
Direct Response- good for information exchange
Good if firm has one well identified target market.
Producer <-> Retailer <-> Consumer
Allows producer to focus on producing.
Done when retailers are large enough to do wholesaling function themselves (Walmart)
Selective Distribution- retailer who is not everywhere.
Producer <-> Agent and/or wholesaler <-> Retailer <-> Consumer
Low Cost, frequently purchased items
Packaged foods, health and beauty aids.
Agents are used when the producer is too small to have sales staff find wholesalers.
Multi or Duel Channel
Uses more than one path. Allows different consumer segments to get your product.
Channel Decisions- Hybrids
When different supply chain activities (value) are delivered to customer using a mulit-channel design.
Channel Decisions- Push and Pull
Strategies deal with stimulating demand for the product.
Push and Pull
Push strategies involve the producer stimulating middle-man demand.
Provide channel members with incentive to buy more product bulk rates, allowances...
This gives retailers incentive to PUSH your product onto the customer.
Push and Pull
Pull strategies involve the producer stimulating end-customer demand.
Provide the end-customer with incentive to buy more product- mfg. coupons, buy 1 get 1 free...
Customers want the product more so reailers buy more to satisfy demand.
Tend to be SHORT
May include a distributor especially in franchise situations
Recall- distribution means getting the product to the place and at the time the customer wants
Out patient clinics for a hospital