Principles of Marketing
Case II
Marketing case study, present your product based on the marketing mix of price, promotion and place. This is a visual presentations for 5 – 10 minutes per group. Case study due, April 24, students must submit a copy of your presentation to get credit worth up to 10% of your grade.
Principles of Marketing
Place
Channel Behavior and Organization
Conventional distribution systems consist of one or more independent producers, wholesalers, and retailers. Each seeks to maximize its own profits, and there is little control over the other members and no formal means for assigning roles and resolving conflict.
Conventional Distributions Systems
Channel Behavior and Organization
Vertical marketing systems (VMS) provide channel leadership and consist of producers, wholesalers, and retailers acting as a unified system and consist of:
Corporate marketing systems
Contractual marketing systems
Administered marketing systems
Vertical Marketing Systems
Channel Behavior and Organization
Contractual vertical marketing system consists of independent firms at different levels of production and distribution who join together through contracts to obtain more economies or sales impact than each could achieve alone. The most common form is the franchise organization.
Vertical Marketing Systems
Channel Behavior and Organization
Franchise organization links several stages in the production distribution process
Manufacturer-sponsored retailer franchise system
Manufacturer-sponsored wholesaler franchise system
Service firm-sponsored retailer franchise system
Vertical Marketing Systems
Channel Behavior and Organization
Administered vertical marketing system has a few dominant channel members without common ownership. Leadership comes from size and power.
Vertical Marketing Systems
Channel Behavior and Organization
Horizontal marketing systems are when two or more companies at one level join together to follow a new marketing opportunity. Companies combine financial, production, or marketing resources to accomplish more than any one company could alone.
Horizontal Marketing Systems
Channel Behavior and Organization
Multichannel Distribution systems (Hybrid marketing channels) are when a single firm sets up two or more marketing channels to reach one or more customer segments
Multichannel Distribution Systems
Hybrid Marketing Channels