1. Marketing Channel System *interdependent organizations *participate in the process of making a product or service available
1.1. Channels and Marketing Decision
1.1.1. Push Strategy
1.1.1.1. Use sales force, trade promotion money, or other means to induce intermediaries to carry, promote, and sell the product to end users
1.1.1.2. Low brand loyalty in a category
1.1.1.3. Brand choice is made in the store
1.1.1.4. Product is an impulse item
1.1.1.5. Product benefits are well understood
1.1.2. Pull Strategy
1.1.2.1. Use advertising, promotion, and other forms of communication to persuade consumers to demand the product from intermediaries
1.1.2.2. High brand loyalty and high involvement in the category
1.1.2.3. When consumers are able to perceive differences between brands
1.1.2.4. When they choose the brand before they go to the store
1.2. Marketing Channels
1.2.1. Channel Levels
1.2.1.1. Zero-level channel
1.2.1.1.1. Direct marketing channel (Manufacturer -> Final customer)
1.2.1.2. One-level channel
1.2.1.2.1. One selling intermediary (i.e. Retailer)
1.2.1.3. Two-level channel
1.2.1.3.1. Two intermediaries (i.e. wholesaler and retailer)
1.2.1.4. Three-level channel
1.2.1.4.1. Three intermediaries
1.2.2. Channel Member Functions
1.2.2.1. Gather information
1.2.2.2. Develop and disseminate persuasive communications
1.2.2.3. Reach agreements on price and terms
1.2.2.4. Acquire funds to finance inventories
1.2.2.5. Assume risks
1.2.2.6. Provide for storage
1.2.2.7. Provide for buyers’ payment of their bills
1.2.2.8. Oversee actual transfer of ownership
1.2.3. Channel Movement
1.2.3.1. Forward flow
1.2.3.1.1. Company to the customer
1.2.3.2. Backward flow
1.2.3.2.1. Customer to the company
1.3. Channel-Design
1.3.1. Customer Needs and Wants
1.3.1.1. Types of Customers
1.3.1.1.1. Service/quality customers
1.3.1.1.2. Price/value customers
1.3.1.1.3. Affinity customers
1.3.1.2. 5 Service Outputs
1.3.1.2.1. Lot size
1.3.1.2.2. Waiting and delivery time
1.3.1.2.3. Spatial convenience
1.3.1.2.4. Product variety
1.3.1.2.5. Service backup
1.3.2. Establish Channel Objectives and Constraints
1.3.2.1. Service output levels and associated cost and support levels
1.3.2.2. Adaptable
1.3.3. Identify Major Channel Alternatives
1.3.3.1. 3 Differences in channel alternatives
1.3.3.1.1. Types of intermediaries
1.3.3.1.2. Number needed
1.3.3.1.3. Terms and responsibilities of Channel Members
1.3.4. Evaluate Major Channel Alternatives
1.3.4.1. Economic
1.3.4.1.1. level of sales and costs
1.3.4.2. Control
1.3.4.2.1. activities and expertise
1.3.4.3. Adaptive Criteria
1.3.4.3.1. structures and policies that provide high adaptability
1.4. Channel Management Decisions
1.4.1. Selecting Channel Members
1.4.1.1. What characteristics distinguish the better intermediaries?
1.4.2. Training Channel Members
1.4.3. Motivating Channel Members
1.4.3.1. Channel Power
1.4.3.1.1. Objectively observable
1.4.3.1.2. Subjective
1.4.4. Evaluating Channel Members
1.4.4.1. Performance and standards
1.4.4.1.1. Sales quota attainment
1.4.4.1.2. Average inventory levels
1.4.4.1.3. Customer delivery time
1.4.4.1.4. Treatment of damaged and lost goods
1.4.4.1.5. Cooperation in promotional and training programs
1.5. Channel Integration and Systems
1.5.1. Types of Channel Systems
1.5.1.1. Vertical marketing systems
1.5.1.1.1. Corporate VMS
1.5.1.1.2. Administered VMS
1.5.1.1.3. Contractual VMS
1.5.1.2. Horizontal marketing systems
1.5.1.2.1. two or more unrelated companies put together resources or programs to exploit an emerging marketing opportunity
1.5.1.3. Multichannel systems
1.5.1.3.1. Adding more marketing channels
1.6. Conflict, Cooperation, and Competition
1.6.1. Channel Conflict
1.6.1.1. prevent from achieving goal
1.6.1.1.1. Types of Channel Conflict
1.6.1.1.2. Cause of Channel Conflict
1.6.1.1.3. Manage Channel Conflict
1.6.2. Channel Coordination
1.6.2.1. together to advance the goals
1.6.3. Key issues with Marketing Practice
1.6.3.1. E-Commerce Marketing Practice
1.6.3.1.1. Types
1.6.3.2. M-Commerce Marketing Practice
1.6.3.2.1. privacy issues that may ultimately warrant public scrutiny and regulation