Directory UMM :Slide_Kuliah:PPT:MP_Kotler_10:

Objectives
 Work

Performed by Marketing Channels
 Channel-Design Decisions
 Channel-Management Decisions
 Channel Dynamics

©2000 Prentice Hall

How a Distributor Reduces the
Number of Channel Transactions

1
2
3
4
5
6

A. Number of contacts

without a distributor
MxC=3X3=9

7
8
9
= Manufacturer
©2000 Prentice Hall

= Customer

How a Distributor Reduces the
Number of Channel Transactions

1
Store

2

3

= Manufacturer
©2000 Prentice Hall

B. Number of contacts
with a distributor
MxC=3+3=6

4
5

6

= Customer

= Distributor

Distribution
Distribution Channel
Channel
Functions

Functions
Information
Information
Transfer
Transfer
Payments
Payments
Physical
Physical
Distribution
Distribution
Risk
Risk Taking
Taking
©2000 Prentice Hall

Communication
Communication
Negotiation
Negotiation

Ordering
Ordering
Financing
Financing

Consumer
Consumer Marketing
Marketing Channels
Channels

0-level channel
Manufacturer
Manufacturer

Consumer
Consumer

1-level channel
Manufacturer
Manufacturer

Retailer
Retailer



Consumer
Consumer

Retailer
Retailer



Consumer
Consumer

Retailer
Retailer



Consumer
Consumer

2-level channel
Mfg
Mfg

Wholesaler
 Wholesaler

3-level channel
Mfg
Mfg
©2000 Prentice Hall

Wholesaler
 Wholesaler

Jobber
Jobber



Industrial
distributors

Manufacturer’s
representative
Manufacturer’s
sales branch

©2000 Prentice Hall

Consumer

Manufacturer

Industrial Marketing Channels

Customers’ Desired Service
Levels
 Lot

size
 Waiting time
 Spatial convenience
 Product variety
 Service backup

©2000 Prentice Hall

Break-Even Cost Chart
Manufacturer’s
sales agency
Company
sales force

Selling

costs
(dollars)

SB
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Level of sales (dollars)

Channel
Channel Management
Management Decisions
Decisions

Training
Training
Motivating
Motivating
Evaluating
Evaluating
©2000 Prentice Hall

FEEDBACK

Selecting
Selecting

Types
Types of
of Vertical
Vertical Marketing
Marketing Systems
Systems
Corporate
Corporate

Common
Common Ownership
Ownership at
at Different
Different

Levels
Levels of
of the
the Channel
Channel

Administered
Administered

Leadership
Leadership is
is Assumed
Assumed by
by One
One or
or
aa Few
Few Dominant
Dominant Members
Members

Contractual
Contractual

Contractual
Contractual Agreement
Agreement Among
Among
Channel
Channel Members
Members
©2000 Prentice Hall

Conventional Distribution Channel vs.
Vertical Marketing Systems
Vertical
marketing
channel

Manufacturer

Manufacturer

Wholesaler
Retailer
Consumer
©2000 Prentice Hall

Wholesaler

Conventional
marketing
channel

Retailer

Consumer

Causes of Channel Conflict
 Incompatibility
 Difference

in Perception
 Dependence

©2000 Prentice Hall

Legal & Ethical Issues in
Channel Relations
 Exclusive

Dealing
 Exclusive Territories
 Tying Agreements
 Dealers’ Rights

©2000 Prentice Hall

Review
 Work

Performed by Marketing Channels
 Channel-Design Decisions
 Channel-Management Decisions
 Channel Dynamics

©2000 Prentice Hall