BUS M 300 Lecture 16 Outline of Last Lecture I Global Companies or Global Consumers II Issues Facing Global Businesses III Global vs Multinational Strategies IV Marketing Internationally V Specific Entry Approaches in International Markets Outline of Current Lecture VI Marketing Channels VII Direct vs indirect channels VIII Choosing a Marketing Channel IX Market Channel Conflicts X Supply Chains Current Lecture Marketing Channels o A marketing channel consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users o Marketing channels make possible the flow of goods from a producer through intermediaries to a buyer These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Some intermediaries purchase items from the seller store them and resell them to buyers Others represent sellers but do not take title to products o How do we get products to market o Why are marketing channels important They help to reach perspective buyers either directly or indirectly It is a prerequisite for successful marketing Create form time place and possession value for consumer Direct vs indirect channels o Direct Channel A marketing channel where a producer and ultimate consumers deal directly with each other o Indirect Channels Marketing channels where intermediaries are inserted between the producer and consumers and perform numerous channel functions Choosing a Marketing Channel o Target Market Coverage Selective Distribution Lies between these two extremes and means that a firm selects a few retail outlets in a specific geographical area to carry its products Intensive Distribution Means that a firm tries to place its product and services in as many outlets as possible Exclusive Distribution Is the extreme opposite of intensive distribution o Satisfying Buyer Requirements How should information be communicated to consumers Convenience proximity or driving time to a retail outlet or hours of operation Variety what breadth and depth of products should be carried by intermediaries Pre or post sale service In what way should consumers be taken care of before during and after the sale o Profitability It is determined by the margins earned for each channel member and for the channel as a whole Channel costs include distribution advertising and selling expenses The extent to which channel members share these costs determines the profitability of each member and of the channel as a whole Marketing Channel Conflicts o Vertical conflict occurs between different levels in a marketing channel such as a manufacturer and a retailer o Horizontal conflict occurs between intermediaries at the same level in a marketing channel such as between two or more retailers and or wholesalers that handle the same manufacture s brands Supply Chains o Supply chain a sequence of firms that perform activities required to create and deliver a good or service to consumers or industrial users Includes supplies wholesalers and retailers o Supply chain management the integration and organization of information and logistics activities across firms in a supply chain o Logistics management the practice of organizing the cost effective flow of raw materials inventory and finished goods from point of origin to point of consumption to satisfy customer requirements o Responsive supply chain products are moved along the supply chain when customers place orders o Efficient supply chain designed to move mass consumption goods quickly to the marketplace