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of customer service. ? Channel objectives are influenced by: – Cost of customerservice requirements. – Nature of the pany. – The firm’s products. – Marketing intermediaries. – Competitors. – Environment. Channel Design Decisions ? Identifying major alternatives: – Types of intermediaries: ?Retailers, “valueadded” retailers, independent distributors, dealers, etc. – Number of marketing intermediaries: ?Intensive, selective, or exclusive distribution. – Responsibilities of channel members. ?Price policies, conditions of sale, territories and services to be performed. Marketing in Action Rolex sells its watches exclusively through only a handful of authorized dealers in any given market. Such limited distribution enhances the brand’s image and generates stronger retailer support. ? Evaluating the major alternatives involves paring each alternative to: – Economic criteria: ? A pany pares the likely sales, costs, and profitability of different channel alternatives. – Control issues: ? How and to whom should control be given? – Adaptive criteria: ? Consideration of longterm channel mitment vs. channel flexibility. Channel Design Decisions Designing International Channels ? Channel design decisions can be very challenging: – Each country has its own unique distribution system. – Distribution systems can be plex with many layers and a large number of intermediaries. – Distribution systems in developing countries may be scattered or inefficient. – Customs and government regulation can restrict distribution in global markets. Marketing in Action When the Chinese government banned doortodoor selling, Avon had to abandon its traditional direct marketing approach and sell through retail shops. Channel Management Decisions ? Marketing channel management: – Selecting channel members. – Managing and motivating channel members: ? Partner relationship management. – Evaluating channel members. Caterpillar works closely with its worldwide work of independent dealers to find better ways to bring value to customers. Public Policy and Distribution Decisions ? Laws affecting channel decisions seek to prevent the exclusionary tactics that some firms might use to keep another from using a desired channel. ? Situations with the potential to violate Clayton Act include: – Exclusive distribution. – Exclusive dealing. – Exclusive territorial agreements. – Tying agreements. Marketing Logistics Planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit. Involves supply chain management. Figure : Supply Chain Management Marketing Logistics and Supply Chain Management ? Greater emphasis has been placed on logistics recently because: – Firms can gain a petitive advantage when logistics result in better service or lower prices. – Improved logistics can lower costs. – Increased product variety has created a need for improved logistics management. – Improvements in information technology have created the means for major gains in distribution efficiency. – Logistics effect the environment as well as the firm’s environmental sustainability efforts. Marketing in Action Cost c