This document discusses marketing channels and intermediaries. It defines a marketing channel as the set of interdependent organizations involved in making a product available for consumption. Intermediaries like retailers and wholesalers are discussed as types of channel members that improve exchange efficiencies by performing marketing functions and eliminating discrepancies. The document outlines how studying marketing channels includes analyzing the channel design, implementation, power dynamics, and coordination to efficiently meet customer demands.

1. Think Efficiency and Effectiveness

2. Add a Distributor

3. Marketing Channel Defined A set of interdependent organizations involved in the process of making a product or service available for use or consumption.

4. III. Intermediaries A. Types Retailer Wholesaler Agent B. Value Created by Intermediaries Improve exchange efficiency Perform marketing functions Eliminate assortment / quantity discrepancies

5. Types of Intermediaries

6. How intermediaries improve exchange efficiencies

7. Channel Structure Decisions

8. Examples of direct and indirect channels Slide 15-15

10. Gatekeeper Important asset of marketing strategy Differentiator Difficult to replicate End-user satisfaction Overall brand image Awareness of channel importance is low Opportunity for competitive advantage Difficult to create and maintain channel Difficult and costly to change Right the first time Importance of Studying Marketing Channels

11. Channel Members Manufacturers Intermediaries Retailers Wholesalers End-users

12. Channel Analysis Framework CHANNEL DESIGN Segmentation Channel Structure Splitting the Workload Degree of Commitment Gap Analysis CHANNEL IMPLEMENTATION Channel Power Channel Conflict Manage/Defuse Conflict Channel Coordination

13. Segmentation Splitting market into groups of end-user

14. Segmentation Example: Segments of book end-users Recreational readers University students Convenience-oriented Price-oriented

15. Selecting Target Segments Those we can serve most profitably Restrictions Managerial bounds Environmental bounds Legal Competitive benchmarks

16. Channel Structure Types of channel members Identities of specific channel members Channel intensity: number of each type

17. Gap Analysis The difference between optimal and actual channels Demand side gaps Service output demands are not being met Undersupplied Oversupplied Supply side gaps At least one flow is costing too much Lack of expertise Waste

18. Channel Power Ability to control other channel members Necessary to implement channel design May be used to optimize channel to benefit of all channel members

19. Channel Conflict Actions of channel members prevent channel from achieving its goals Goal conflict Domain conflict Perceptual conflict

20. Manage/Diffuse Conflict Identify sources of conflict Poor channel design Poor performance Take action Exercise channel power

21. Channel Coordination Result of Channel designed to meet service output demands of target end-user segments Ongoing process

22. Insights for Specific Channel Institutions Retailers Wholesalers Logistics firms Supply chain issues Franchises