Marketing Strategy: Key Concepts 8

Channel Selection Issues

Use middlemen who perform functions more efficiently. Functions include: Two key issues to support intermediaries Types of utilty provided by intermediaries: Channel decisions include: Direct to market = Indirect to market = Issues in selecting channel partners: Lock-in to channel decisions

Channel decisions impact on other elements of the mix

Life cycle issues change channel strategy.
Early stage: Specialized channels
Growth stage: Alternative channels
Maturity stage: Mass channels
Early stage: high control, service and delivered price
Later stage: increasing conflict, range of providers, complexity of channel

Channel member relationships

Impact of trade promotions: distortion effects?
Zero sum Relationship w/ channel members?
Need to build symbiotic relationships with channel members.

Channel modification issues

Trends include vertical, horizontal and multi-channel conflict.

Internet has had significant impact re: building new channels and changing industries through disintermediation and information flow issues.

Legal and ethical issues:

Retailing

Retailing includes all interactions w/ final customer
Retail life cycle
Wheel of retailing
Retail market planning: Retailing trends:

Wholesaling

Wholesaling includes all interactions w/ intermediaries buying for resale or business use.

Functions include:

Wholesalers comprise four groups: Increasing importance of logistics, and providing a system-wide approach at reducing costs.

Logistics decisions:

Interesting sites:

Discussion Topic: Impact of channel members creating a market for used product. Is this good or bad for the market, how does it impact the value of the new product?

Relevant Knowledge @ Wharton Articles

Kmart’s 20-Year Identity Crisis
Taking Stock of Supermarket Retail Performance
Pay-for-Performance Trade Promotions Can Ease Friction Between Manufacturers and Retailers
Christmas E-tailers: Will It Be Ho-Ho or So-So?
Making the Case for Outside Sales Reps
How Store Location and Pricing Structure Affect Shopping Behavior
Add relevant websites
Link to discussion board
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