MARKETING CHANNEL

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MARKETING CHANNEL by Mind Map: MARKETING CHANNEL

1. Role of Marketing Channels

1.1. Facilitate the exchange process -reducing the number of marketplace contacts necessary to make a sale.

1.2. ii) Standardizing exchange transaction -setting the expectation for products, and it involves the transfer process itself

1.3. iii) Facilitate searches by both buyers and sellers -Channels will bring buyers and sellers together by sellers attempt to learn what buyers needs and wants.

2. Type of Marketing Channels

2.1. 1) Marketing Intermediary -involves middleman such as retail dealer or wholesaler -including 5 section: i) Producer to wholesaler to retailer to consumer ii)Producer to wholesaler to business user iii) Producer to agent to wholesaler to retailer to consumer iv) Producer ti agent to wholesaler to business user v) Producer to agent to business user

2.2. 2)Direst Selling -it moves good directly from a producer to the business purchaser or ultimate user.

2.3. 3) Dual Distributions -a network that moves products to a firm's target market through more than one marketing channel.

2.4. 4)Reverse Channel -a concept that involves of movement of goods and services from consumer or business user by returning their goods to producer.

3. Channels Strategy Decisions

3.1. 1) Selection of a merketing channel -marketing organisation may base its selection of channels on its size and competative factors.

3.1.1. 4 types of factors: i) Market Factors ii) Product Factors iii) Organizational Factors iv) Competitive Factors

4. Determining Distribution Intensity

4.1. refers to the number of intermediaries through which a manufacturer distributes its good in a particular markets

4.2. Including 3 categories of distributions

4.2.1. I) Intensive Distributions -Distributions of a product through all available channels

4.2.2. II) Selective Distributions -Distributions of a product through a limited numbers of channels

4.2.3. III) Exclusive Distributions -DIstributions os a product through a single wholesaler or retailer in specific geographic region

5. Channels management and Leaderships

5.1. 1) Channel Captain -dominant and controlling member os a channel -the firms power to control may result from its control over some type of rewards or punishments

5.2. 2)Channels Conflict including two types of conflicts mat hinder the normal functioning of a marketing channel. i)horizontal Conflist -disagreements among channel memvers at the same leve,such as two or more wholesaler or retailer. ii)Vertical Conflict -disagreement of channels members at different levels.

5.2.1. Grey Market -one of the channels conflict that often happen. -grey markets refers to the flow of goods through distributions to channels others than those authorized or intended manufacturers.

6. Vertical Merketing Systems

6.1. Refers to a planned channel system designed to improve distribution efficiency and cost effectiveness by integrating various function throughout the distribution chain. -goal can be achieved by forward integration or backward integration.

6.1.1. It consisted 3 categories of system: i) Corporate Systems -vertical marketing system in which a single owner operates the entire marketing channel. ii) Administered Systems -vertical marketing systems that achieves channel coordination when a dominant channel member exercises its power iii)Contractual Systems -vertical marketing systems that coordinates channel activities through formal agreements among participants -it consists 3 types of categories 1)wholesaler-sponsored voluntary chain 2)Retail Cooperative 3) Franchise

7. Logistics and Supply Chain Management

7.1. Supply Chain -the complete sequence of suppliers and activities that contribute to the creation and delivery goods and services

7.2. 2 types of supple chain's direction: 1) Upstream Management -the process that involves of raw materials, inbound logistics, warehouse and storage facilitis 2) Downstream Management -the process that involves managing the finishes product storage.outbound logistics, marketing and sales, and customer services.

7.2.1. Tools that been used for Logistics Management: 1) Radio Frequency Indentification (RFID) 2)Enterprise Resource Plannng (ERP) 3)Logistical Cost Control

8. Physical Attributions

8.1. Its contain 6 elements that are linked together for achieving specific distributions objectives. these elements are: 1) Customer Services 2)Transportation 3)Inventory Control 4)Protective Packaging and Materials Handlings 5)Order Processing 6)Warehousing

8.1.1. Customer services -the levels of customers services of distribution activities should support -it will follows by the customer-services standard

8.1.2. Transportation -managers will choose among the major 5 transportation modes based on the goods and geographic region which are: i)Railroads -mostly transport of lumber,iron, steels and etc. (low frequency,average costing) ii)Motor Carriers -mostly transport of clothing,furniture,machinery and etc. (high frequency,high costing) iii) Water Carries -mostly transport of coal,chemicals, minerals,oil and etc. (very low frequency, average low costing) iv) Pipelines -mostly transport of water.oil,fuels and natural gas. (high frequency,low costing) v) Air Freight -mostly transport of import flowers,high price specialty products or e-commerce goods. (average frequency,very high costing)

8.1.2.1. Inventory Control -define how much or how big inventory of firms should maintain at each location for avoiding excessive used of budjets

8.1.2.2. Protective Packing -to determine how the firm can package and efficiently handle goods in the factory. transport terminals and warehouse to avoid the sealed of goods.

8.1.2.3. Order Processing -consists 4 major activities which are:, 1)conducting a credits checks 2)keeping a record of sale 3) making an appropriate accounting entries 4)locating items,shipping items and adjusting inventory records

8.1.2.4. Warehousing -when the distribution system will locate stocks of goods and the number of warehouses the firms should maintain -Inclusing 2 types of warehousing 1)Automated Warehouse Technology 2)Warehouse Locations