University:
California State University, Northridge
Course:
MGT 464 | International Business Management
Academic year:

2024
Views:

397

Pages:

16
Author:

hello3xc

Why Use Distribution Channels?  To make the product or service available to consumers. • risk • cost Why Use Distributors?  Efficiency  Information  Contact and promotion  Matching  Transportation and storage  Financing and risk taking  Negotiation Direct Channels of Distribution  Manufacturer’s sales office  Manufacturer’s branch office  Catalog mail order Indirect Channels of Distribution  Direct to retailer  Through wholesaler to retailer  Through wholesaler to jobber to retailer  Through exporter to freight forwarder to shipper to importer..... Channel Behavior  Power  Conflict  Trust • Horizontal • Vertical Trends in Marketing Channel Systems  Vertical Marketing Systems  Horizontal Marketing Systems  Multi-channel Marketing Systems • Corporate • Contractual • Administered Channel Design Decisions  Types of distributors  Number of distributors • Intensive distribution • Exclusive distribution • Selective distribution Alternative Evaluation Criteria  Economic  Control  Adaptive Channel Management Decisions  Selecting channel members  Motivating channel members  Evaluating channel members Wholesalers and Retailers  Mostly business customers  Larger trade areas, larger transactions  Less resources to promotion, atmosphere and location  Regulations and taxes Why Direct Marketing?  Less shopping time  Costs of driving and lines  Toll free telephone numbers  Use of credit cards  Growth of computer power  Reduces high costs of reaching customers through sales people  Allows sellers greater selectivity Forms of Direct Marketing  Direct Mail  Catalog Marketing  Telemarketing  TV Marketing  A Theory! Transaction Cost Analysis Should an activity be performed within the organization by employees or should the organization contract with an external agent to perform the activity? Distribution Transaction Cost Analsysis 2  Examples: • Make or buy • Direct salesperson or manufacturer's representative • In-house advertising or advertising agency Transaction Cost Analysis 3  Assumptions • Humans are subject to bounded rationality • Agents are given to opportunism Factors Underlying Decision to Integrate  Asset Specificity  External Uncertainty  Frequency of Transactions • Supply Uncertainty • Demand Uncertainty

Description

Related Documents

Free up your schedule!

Take 5 seconds to unlock