WELCOME TO
MARKETING MANAGEMENT
D R . C E C I L I A R U VA LC A B A
BUSI 107
W E E K 1 0 , D AY 3
JOIN M.E.CH.A. FOR THEIR BIGGEST EVENT OF CHICANX WEEK
2 016 ! T H I S I S A F R E E E V E N T I N W H I C H A L L C U LT U R E S , C LU B S ,
AND COMMUNITY MEMBERS ARE WELCOME. M.E.CH.A. INVITES
YO U TO K N OW A L I T T L E B I T M O R E A B O U T O U R O R G A N I Z AT I O N A N D
HAVE FUN!
LO C AT I O N :
C A R S H OW - STAG G WAY
CARNIVAL DE LA GENTE - WPC LAWN
DELIVERING VALUE THROUGH
MARKETING CHANNELS CONT…
CHANNEL STRATEGY CONSIDERATIONS
• Distribution coverage:
• Intense- Achieve mass market selling
• Selective- Work with selective intermediaries.
• Exclusive- Work with one or few intermediaries.
• Degree of control:
• Channel Power (producers or intermediaries)
• Brand Equity
• Total distribution cost
• Transportation, Order processing, Cost of lost business,
Inventory carrying costs, Packaging, Materials handling.
• Channel flexibility- ability to adapt to changing
conditions.
4
EXPORT PRICE ESCALATION
5
CHANNEL SELECTION
Assume Full Distribution Activity
vs.
Depending on Intermediaries
Switching Costs
Brand
JUST IN TIME (JIT) SYSTEM
Reduced lead time
Increased product
availability and lower
inventory investment
RELATIONSHIP MANAGEMENT
Common Goals
Open
Communications
Mutual Trust
Interdependence
Strategic
Relationships
Credible
Commitments
GRAY MARKET ISSUES
Selling drugs
out of date
leads to
lawsuits.
• Dilution of
exclusivity
• Free riding
• Damage to channel
relationships
• Undermining
segmented pricing
schemes
• Reputation and legal
liability
CHANNEL CONFLICT
TAKE AWAY FOR TODAY
• Channel Selection is Key to Product Success!
• Manage Relationships to create value!
• The Value Conflict
• Customer Demand vs. Channel Conflict
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NEXT CLASS
• Marketing Channels & Retail Strategy
Cont…
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