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CHANNEL by Mind Map: CHANNEL

1. The role of marketing channels in marketing strategy

1.1. Facilitate the exchange process

1.2. Sorting

1.3. Standardizing exchange transactions

1.4. Facilitate searches by both buyers and sellers

2. Types of marketing channels

2.1. Direct selling

2.1.1. Direct channel

2.1.2. Direct selling

2.2. Channels using marketing intermediaries

2.2.1. Producer to wholesaler to retailer to consumer

2.2.2. Producer to wholesaler to business user

2.2.3. Producer to agent to wholesaler to retailer to consumer

2.2.4. Producer to agent to wholesaler to business user

2.2.5. Producer to agent to business user

2.3. Dual distribution

2.3.1. Network that moves products to a firm's target market through more than one marketing channel.

2.4. Reverse channels

2.4.1. Channels designed to return goods to their producers.

3. Channel strategy decisions

3.1. Selection of a marketing channel

3.1.1. Market factors

3.1.2. Product factors

3.1.3. Organizational and competitive factors

3.2. Determining distribution intensity

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

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

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

3.2.3.1. Legal problems of exclusive distribution

3.3. Who should perform channel function

4. Channel management and leadership

4.1. Channel conflict

4.1.1. Horizontal conflict

4.1.2. Vertical conflict

4.1.3. The grey market

4.2. Achieving channel cooperation

5. Vertical marketing systems

5.1. Corporate systems - VMS in which a single owner operates the entire marketing channel.

5.2. Administered systems - VMS that achieves channel coordination when a dominant channel member exercises its power.

5.3. Contractual system - VMS that coordinates channel activities through formal agreements among participants.

5.3.1. Wholesaler-sponsored voluntary chain

5.3.2. Retail cooperative

5.3.2.1. The retailers purchase ownership shares in the wholesaling operation and agree to buy a minimum percentage of their inventories from this operation.

5.3.3. Franchise

5.3.3.1. Which a wholesaler or dealer (the franchise) agrees to meet the operating requirements of a manufacturer or other franchise.

6. Logistics and supply chain management

6.1. Radio frequency identification (RFID) - Technology uses a tiny chip with identification information that can be read by a scanner using radio waves from a distances.

6.2. Enterprise resource planning (ERP) - is an integrated software system that consolidates data from among the firm's units.

6.3. Logistical cost control

6.3.1. Third-party logistics

6.3.1.1. The Third-party (contract) logistics firms specialize in handling functions to specialist firms.

7. Physical distribution

7.1. The problem of suboptimization - Suboptimization results when the managers of individual physical distribution functions attempt to minimize costs.

7.2. Customer service standards - State the goals and define acceptable performance for the quality of service that a firm expects to deliver to its customers.

7.3. Transportation

7.3.1. Classes of carriers

7.3.1.1. Common carriers often considered the backbone of the transportation industry, provide transportation services as for hire carriers to the general public.

7.3.1.2. Contract carriers are for hire transporters that do not offer their services to the general public.

7.3.1.3. Private carriers do not offer services for hire.

7.3.2. Major transportation modes

7.3.2.1. Railroads

7.3.2.2. Motor carriers

7.3.2.3. Water carriers

7.3.2.4. Pipelines

7.3.2.5. Air freight

7.3.3. Freight forwarders and supplemental carriers

7.3.4. Intermodal coordination

7.4. Warehousing

7.4.1. Automated warehouse technology

7.4.2. Warehouse locations

7.5. Inventory control systems

7.6. order processing

7.7. Protective packaging and materials handling