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Distribution Decisions Logistics & Channel Management Presentation

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Marketing

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American University in Cairo

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Module 13 Distribution Decisions Logistics & Channel Management By: Dr Shahinaz Abdellatif Objective of this session 1. To examine the channel design and channel management decisions a marketer faces Channel Design • Channel design decisions concerned with developing a channel structure that links the firm’s marketing strategy with the needs of its target market. • These decisions focus on questions such as how many levels of middlemen should be included in the distribution system and what types of institutions, and how many of each, should be included at each level. Channel Design • Channel management decisions involve the development of policies and procedures to gain and maintain the cooperation of – and often to form mutually beneficial long-term relationships with – the various institutions within the channel. Such decisions focus on selecting and recruiting individual channel members, motivating them to perform specific marketing functions on behalf of the supplier’s product or service, coordinating their efforts, assessing their performance, and resolving conflicts that arise. Marketing Channel • Marketing Channel is the set of interdependent organisations involved in the process of making product or service available for consumption or use by consumers or industrial users. • The rationale for marketing channels lies in the trade-off between costs and benefits. Ways by which middlemen increase efficiency • Functional efficiency: Middlemen ...
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