CHAPTER 10Distribution Channel: Set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user.marketing intermediaries: gains more than it can achieve on its own; contacts, experience, specialization,scale of operationChannel Design: product availability- desired level of coverage; promotional effort-selling support, customer service, market informationA Major Trend is Toward Disintermediation Which Means that Product and Service Producers are Bypassing Intermediaries and Going Directly to Final Buyers or That New Types of Channel Intermediaries are Emerging to Displace Traditional OnesHorizontal Marketing System: Two or More Companies at One Channel Level Join Together to Follow a New Marketing Opportunity. – Subway in WalmartHybrid Marketing System: A Single Firm Sets Up Two or More Marketing Channels to Reach One or MoreCustomer Segments.Channel ManagementIncentives – to encourage promotional activities – sales person incentive fund: SPIFsHorizontal Conflict occurs among firms at the same level of the channel, i.e K-mart vs. WalmartVertical Conflict occurs between different levels of the same channel, i.e. Sony vs. Walmart –contactsCHAPTER 11Retailing includes all the activities involved in selling products or services directly to final consumers fortheir personal use.types of retailers: amount of service the offer, breadth/depth of service, relative prices charged, how they are organizedservice: self-service –pigglywiggly; limited service – provide some assistance; full-service – “waited on”- car dealershipsbreadth/depth: specialty store- narrow product line, deep assortment; department store – wide variety of product lines; supermarket – low-cost, low-margin, high volume, wide variety; convenience stores- long hours, limited line of high-turnover goods; superstores- large assortment; category killers – huge specialty stores w/ knowledgeable employees and deep assortment –best buy & toys r usprices: discount store-standard product at low prices, high volume; off-price-buys for less, sells for less, factory outlet, warehouse club- limited selection, deep discounts – Sam’sorganization: chain store- 2+ outlets, central merchandise line – Dillard’s; voluntary chain- independent retailers engage in bulk buying; franchise- contractual association – lower risk, high growth rateWholesaling includes all activities involved in selling goods and services to those buying for resale or business use.merchant wholesaler- take title of goodsbrokers & agents- only
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