Marketing Channel Strategy Channel Flows Nature of Distribution Channels: Why Use Marketing Intermediaries? Why Use Marketing Intermediaries? Distribution Channel Functions Traditional Marketing Channel Designs The Design of Marketing Channels The Design of Marketing Channels * Buyers are easily identifiable * Personal selling is a major component of the communication mix * Organization has a wide variety of offerings for the target market * Sufficient resources are available The Design of Marketing Channels * Intermediaries are not available for reaching target markets * Intermediaries do not possess the capacity to service the requirements of target markets The Design of Marketing Channels * Intermediaries can perform distribution functions more efficiently and less expensively * Customers are hard to reach directly * Organization does not have resources to perform distribution function Channel Management: Evaluating Channel Members Conventional vs. Vertical Marketing Systems Types of Vertical Marketing Systems Nature and Importance of Marketing Logistics * Involves getting the right product to the right customers in the right place at the right time. * Companies today place greater emphasis on logistics because: -- customer service and satisfaction have become the cornerstone of marketing strategy. -- logistics is a major cost element for most companies. -- the explosion in product variety has created a need for improved logistics management. -- Improvements in information technology has created opportunities for major gains in distribution efficiency. Goals of the Logistics System Transportation Modes Channel Selection at the Retail Level Target Market Coverage