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Unformatted text preview: Administered VMS coordinates successive stages of production and distribution through the size and power of one of the parties Horizontal Marketing Systems • Horizontal marketing system two or more companies at one level join together to follow a new marketing opportunity Multichannel Distribution Systems • Multichannel distribution system single firm sets up two or more marketing channels to reach customer segments Changing Channel Organization • Disintermediation is the cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries Channel Design Decisions • Marketing channel design designing effective marketing channels by analyzing customer needs, setting channel objectives, identifying major channel alternatives, and evaluating those alternatives Analyzing Consumer Needs Marketing channels are part of the overall customer­value delivery network Designing the marketing channel starts with finding out what target consumers want from the channel Setting Channel Objectives The company should decide which segments to service and the best channels to use in each case In each segment, the company wants to minimize the total channel cost of meeting customer service requirements Channel objectives are also influenced by the nature of the company, its products, its marketing intermediaries, its competitors, and the environment...
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