Marketing 2 - After visa

Marketing 2 - After visa - Channel Behavior and...

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Channel Behavior and Organization - 27 Nisan Vertical Marketing Systems Corporate VMS : Full control -Corporation owns production and distribution -Coordination and conflict through regular organizational channels Contractual VMS -Individual firms who join through contracts -Franchise organizations Manufacturer-sponsored retailer franchise system Manufacturer-sponsored wholesaler franchise system Service-firm-sponsored retailer franchise system Administered VMS : One of the parties in the system has power over the others.Power: Ability to make the others to something (Lever, P&G has power on bakkals even there is no contract between manufacturer and retailer) -Leadership through the size and power of dominant channel members -Leadership could be manufacturer or retailer Horizontal Marketing Systems Companies at the same level work together with channel members Ex/ Retailers form a cooperative to work with together : Bakkalım to compete with giants; Carrefour, Migros They combine their puchasing, they buy bigger amounts and it means better negotiation terms and as a result of better negotiation terms they keep compete with giant retailers M W R R R C Multichannel Distribution Systems  Whole system works as a hybrid; Migros is a retailer, bakkal is a retailer but at the same time Migros is acting as a wholesaler so in that case,it is becoming a hybrid system. Also called hybrid marketing channels Occurs when a firm uses two or more marketing channels Ex/ Banks : Branch, Atm, Phone, Internet : 4 channels that are used by bank.And they are using all together.So this is multichannel system, it is not only one channel but 4 different channels working together to reach customer. Changing Channel Organization Disintermediation
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Channel Design Decisions Step 1: Analyzing Consumer Needs Cost and feasibility of meeting needs must be considered : Costs can be switched among the members in the channel through retailer or wholesaler Step 2: Setting Channel Objectives Set channel objectives in terms of targeted level of customer service Many factors influence channel objectives Step 3: Identifying Major Alternatives Types of intermediaries Company sales force, manufacturer’s agency, industrial distributors Company sales force : retailers of company, Tekin Acar cosmetics Manufacturer’s agency : do not have the possession of product, agency only in negotiation process (Şehir fırsatı) Industrial distributors: They own the product, sometimes they get into warehouse sometimes not. Number of marketing intermediaries Intensive, selective, and exclusive distribution Intensive : Convenience products Selective : Shopping products Exclusive : Bir ürünü exclusive tutmak için az noktada bulunması lazım : Specialty products Responsibilities of channel members : related to corporate channels.If the manufacturer;owner of
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This note was uploaded on 10/01/2011 for the course MKT 702 taught by Professor Eminesozer during the Fall '11 term at University of Michigan.

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Marketing 2 - After visa - Channel Behavior and...

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