MARKETING CHANNELS

1. Physical distribution

1.1. -Customer service -transportation -inventory control -protective packaging and materials handling -order processing -warehousing

2. Channel conflict

2.1. Horizontal conflict -Disagreements among channel members at the same level, such as two competing discount stores

2.2. Vertical conflict -Occurs among members at different levels of the channel

3. Determining distribution intensity

3.1. Intensive distribution -Distribution of a product through all available channels

3.2. Selective distribution -Distribution of a product through a limited number of channels

3.3. Exclusive distribution -Distribution of a product through a single wholesaler or retailer in a specific geographic region

4. Direct selling

4.1. Direct channel -Carries goods directly from a producer to the business purchaser or ultimate user

4.2. Direct selling -Strategy designed to establish direct sales contact between producer and final user

5. Four functions of marketing channels:

5.1. -Facilitating the exchange process by reducing the number of marketplace contacts necessary to make a sale

5.2. -Adjusting for discrepancies in the market's assortment of goods and services via sorting

5.3. -Standardizing exchange transactions by setting expectations for products

5.4. -Facilitating searchers by both buyers and sellers

6. Major transportation modes

6.1. Railroads -most efficient way for moving bulky commodities over long distances like enjoying a resurgence

6.2. Motor carriers -relatively fast and consistent service

6.3. Water carriers -include inland or barge lines and ocean-going, deepwater ships

6.4. Pipelines -efficiently transports natural gas and oil

6.5. Air freight -declining in certain market sectors

7. Logistics and supply chain management

7.1. Supply chain -Complete sequence of suppliers and activities that contribute to the creation and delivery of merchandise

7.2. 4 steps of upstream management -raw materials, inbound logistics, warehouse and storage, and production 4 steps of downstream management -finished products storage, outbound logistics, marketing and sales, customer service

8. Legal problems of exclusive distribution

8.1. Exclusive dealing agreement -Prohibits a marketing intermediary from handling competing products

8.2. Closed sales territories -Restrict their distributors to certain geographic regions

8.3. Tying agreements -Allow channel members to become exclusive dealers only if they also carry products other than those that they want to sell

9. Channels using marketing intermediaries

9.1. -Producer to wholesaler to retailer to consumer -Producer to wholesaler to business user -Producer to agent to wholesaler to retailer to consumer -Producer to agent to wholesaler to business user -Producer to agent to business user

10. Types of marketing channels

10.1. Marketing intermediary -Organization that operates between producers and consumers or business users

10.2. Resellers -Wholesaler -Retailer

10.3. Broker -Agents

10.4. Facilitators -Transportation companies