Exhibit 10-1: Marketing Strategy Planning Decisions for Place
Unilever products in Vietnam photos
Amazon warehouse photo
Exhibit 10-2: How Channel Functions May Be Shifted and Shared in Different Channel Systems
ipod vending machine photo
Exhibit 10-3: Characteristics of Traditional and Vertical Marketing Systems
Exhibit 10-4: An Example of Multichannel Distribution by a Publisher of Computer Books
Exhibit 10-5: Basic Approaches for Entering International Markets
Place Decisions in the Marketing Mix Making products available in the right quantities and locations when customers want them Channels of distribution (Chapters 10-12) 12) Focus on institutions involved in getting product to the customer Logistics (Chapter 11) Focus on the physical flow of the product Facilities i needed d for storing and transporting Customer service levels to satisfy customers
Channel Specialists Adjust Discrepancies DISCREPANCIES OF QUANTITY Difference between the quantity of products it is economical to produce and the quantity customers want DISCREPANCIES OF ASSORTMENT Difference between the lines a producer makes and the assortment customers want REGROUPING ACTIVITIES REDUCE DISCREPANCIES Accumulating Bulk-breaking Sorting Assorting
Amazon distribution center photo
Channel Captain A manager who helps direct the activities of the whole channel Tries to develop cooperation and avoid or resolve conflicts May be either a producer or middleman Big retail chains increasingly taking this role Guides the whole channel to compete better with other channels Effective allocation of functions A common product-market commitment
Vertical Marketing Systems Whole channel focuses on the same target market at the end of the channel Corporate channel systems corporate ownership all along the channel often involves vertical integration Administered channel systems informal agreements among channel members Contractual channel systems legal contracts among channel members Alliances are also popular Usually short term, and may involve a whole network of firms
Level of Market Exposure Intensive selling through all responsible and suitable wholesalers and retailers who will stock and/or sell the product Selective selling through only those middlemen who will give the product special attention Exclusive selling through only one middleman in a particular geographic region
Selective Distribution Sell only through middlemen who give the product special attention Avoids dealing with middlemen who: have poor credit standing make too many returns require too much service place only small orders can't or won't do a satisfactory job Becoming more popular less expensive than intensive distribution better cooperation among channel members
Reverse Channels of Distribution Reverse channels are channels used to retrieve products that customers no longer want Examples of situations: recall of unsafe products return of products from incorrectly filled order return of products under warranty return of products customer orders in error return of products customer orders online return of products to be recycled (bottles, etc.)