MKT- Chapter 12

exclusive distribution

Some producers purposely limit the number of intermediaries through exclusive distribution, in which the producer gives only a limited number of dealers the exclusive right to distribute its products in their territories ex: Option find in luxury brands. ex: instrument for professional, price 500 to 1000 it is only available to few dealers to sell. six Jewerly in a state.

how does multichannel cause conflict from the channels compete for customer and sales?

when John Deere first began selling selected consumer products through Lowe's home improvement stores, many of its independent dealers complained loudly. To avoid such conflicts in its Internet marketing channels, the company routes all of its online sales to John Deere dealers.

exclusive territorial agreements

where producer or seller limit territory the producer may agree not to sell to another dealers in a given area, the seller agree only sell to it own territory.

connect by several type of flows

•Physical flow of products •Flow of ownership •Payment flow •Information flow •Promotion flow

How many channel members add value

•Transform the assortment of products into assortments wanted by consumers •Bridge the major time, place, and possession gaps that separate goods and services from users

Evaluating the Major Alternatives

1. economic criteria, 2. control issues, 3. adaptability criteria

supply chain

"make and sell" view includes the firm's raw materials, productive inputs, and factory capacity (sức chứa) The chain is made up of nodes or "links," which can include multiple manufacturers for parts, then the completed product, then the warehouse where it is stored, then its distribution (phân phối) centers, and finally, the store (where retailers sell) where a consumer can purchase it. planning starts by identifying the needs of target customers, to which the company responds by organizing a chain of resources and activities with the goal of creating customer value. -all parties in fulfilling a customer request and leading to customer satisfaction (Bascially, supply chain has to o everything satisfy the demand) ex: farming, refining(tinh chế), design, manufacturing, packaging, and transportation. ex: producers, vendors, warehouses, transportation companies, distribution centers, and retailers.

Demand Chain

"sense and respond" view suggests that planning starts with the needs of the target customer. Decisions about inventory, production, and movement of materials are taken based on customer demand signals, which change constantly. **the demand chain model is a supply chain where the customer is at the driver's seat of operations. The customer determines what he wants when he wants it and how he wants to get it. Remaining profitable in a demand chain model implies that companies have to focus on best practices to respond to customer demands while reducing operating costs and improving customer quality and service.

How a Distributor Reduces the Number of Channel Transactions

**Figure 12.1B shows the three manufacturers working through one distributor, which contacts the three customers. This system requires only six contacts. -intermediaries reduce the amount of work that must be done by both producers and consumers. (reduce cost $) -From the economic system's point of view, the role of marketing intermediaries is to transform the assortments of products made by producers into the assortments wanted by consumers -Marketing channel members buy large quantities from many producers and break them down into the smaller quantities and broader assortments desired by consumers. ex: The Oliver can make a million of 200 hand soap each week. However, you only need a few bars at one time. The Target and Walgreen will buy 2000 hand soap by load truck to stock into their stores shelves. You can buy a single bar of 200 hand soap along with shopping cart full of small quantities of toothpaste, shampoo, and other product-related you need.

Designing International Distribution Channels

-Channel systems can vary from country to country - Marketers must be able to adapt channel strategies to the existing structures within each country (hoà nhập vào hoàn cảnh, tạp tục của mỗi nước) ex: The McDonald's delivery guy: In cities like Beijing, Seoul, and Cairo, armies of motorbike delivery drivers outfitted in colorful uniforms and bearing food in specially designed boxes strapped to their backs make their way through bustling traffic to deliver Big Macs.

A company's channel decisions directly affect every other marketing decision.

-Pricing depends on whether the company works with national discount chains, uses high-quality specialty stores, or sells directly to consumers online.. -Whether a company develops or acquires (thu đc) certain new products may depend on how well those products fit the capabilities of its channel members.

Evaluating Channel Members

-The company must regularly check channel member performance against standards such as sales quotas, average inventory levels, customer delivery time, treatment of damaged and lost goods, cooperation in company promotion and training programs, and services to the customer. The company should recognize and reward intermediaries who are performing well, assist those performing poorly or, as a last resort, replace them

adaptability criteria kha nang thich ung

. Channels often involve long-term commitments, yet the company wants to keep the channel flexible so that it can adapt to environmental changes. - Thus, to be considered, a channel involving long-term commitments should be greatly superior on economic and control grounds.

Setting Channel Objectives

1. Determine targeted levels of customer service ex: : Do consumers want to buy from nearby locations or are they willing to travel to more distant and centralized locations? Would customers rather buy in person, by phone, or online? Do they value breadth of assortment or do they prefer specialization? Do consumers want many add-on services (delivery, installation, repairs), or will they obtain these services elsewhere? 2. Balance consumer needs against costs and customer price preferences. ex: In a depressed economy, producers will want to distribute their goods in the most economical way, using shorter channels and dropping unneeded services that add to the final price of the goods. The objective is to consumer needs against costs and customer price preferences.

analyzing customer needs

1. Find out what target consumers want from the channel 2. a company can identify several segments wanting different levels of service 3. The company should decide which segments to serve and the best channels to use in each case 4. In each segment, the company wants to minimize (giãm) the total channel cost of meeting customer service requirements. providing higher levels of service results in higher costs for the channel and higher prices for consumers. **The success of modern discount retailing shows that consumers will often accept lower service levels in exchange for lower prices.

Number of Marketing Intermediaries

1. Intensive Distribution 2. Exclusive Distribution 3. Selective Distribution

3 types of franchises

1. Manufacturer-sponsored retailer franchise system. 2. Manufacturer-sponsored wholesaler franchise system 3. Service-firm-sponsored retailer franchise system

Channel Management Decisions

1. Selecting channel members 2. Managing channel members 3. Motivating channel members 4. Evaluating channel members Marketing channel management calls for selecting, managing, and motivating individual channel members and evaluating their performance over time.

How Channel Members Add Value

1. information 2. promotion 3. contact, 4. matching, 5. negotiation (giao dịch), 6. physical distribution, 7. financing, 8. risk taking these functions need to be performed—they must be—but rather who will perform them. - To the extent that the manufacturer performs these functions, its costs go up; therefore, its prices must be higher. When some of these functions are shifted to intermediaries, the producer's costs and prices may be lower, but the intermediaries (trung giang) must charge more to cover the costs of their work. - In dividing the work of the channel, the various (đa dạng) functions should be assigned to the channel members who can add the most value for the cost.

Major Logistic Functions

1. warehousing, 2. Inventory management, 3.transportation, 4. Logistics information management

Channel Design Decisions

1.Analyzing consumer needs 2.Setting channel objectives 3.Identifying channel alternatives 4.Evaluating channel alternatives (thay thế)

Responsibilities of Channel Members

A producer and the intermediaries need to agree on •Price policies •Conditions of sale •Territory (lảnh thổ) rights •Specific services the producer should establish a list price and a fair set of discounts for the intermediaries. It must define each channel member's territory, and it should be careful about where it places new resellers. Mutual services and duties need to be spelled out carefully, especially in franchise and exclusive distribution channels. ex: McDonald provides franchise with promotional support, a record keeping system, trainning at Hamburger University, In terms , the franchise have to meet the standard of physical facilities and food quality, cooperate with new promotion programs, and buy specified food products.

Example of how to prevent conflict between partner channels

Black & Decker knows that many customers would prefer to buy online but this would create conflicts with important and powerful retail partners, such as Home Depot, Walmart, Sears, and Amazon.com. So, although Black & Decker's online site provides detailed information about the company's products, you can't buy a Black & Decker cordless drill, laser level, leaf blower, power garden shears, or anything else there ** Instead, the Black & Decker site refers you to resellers' sites and stores. Thus, Black & Decker's direct marketing helps both the company and its channel partners.

building logistics partnerships

Companies must do more than improve their own logistics. They must also work with other channel partners to improve whole-channel distribution. The members of a marketing channel are linked closely in creating customer value and building customer relationships. One company's distribution system is another company's supply system. The success of each channel member depends on the performance of the entire supply chain. Smart companies coordinate their logistics strategies and forge strong partnerships with suppliers and customers to improve customer service and reduce channel costs Many companies have created cross-functional and cross-company teams. Other companies partner through shared projects. The point is that all supply chain members must work together in the cause of bringing value to final consumers. ex: the Nestle Purina pet food unit has a team member work jointly with their counterparts at Walmart to find ways to squeeze their distribution system. Working together benefits not only Purina and Walmart but also their share, final consumer

Several channel design decisions manufacturers face

In designing marketing channels, manufacturers struggle between what is ideal and what is practical. A new firm with limited capital usually starts by selling in a limited market area. In this case, the problem is not deciding on the best channels but how to convince one or a few good intermediaries to handle the line If successful, the new firm can branch out to new markets through existing intermediaries. In smaller markets, the firm might sell directly to retailers; in larger markets, it might sell through distributors. In one part of the country, it might grant exclusive franchises; in another, it might sell through all available outlets. Then it might add an Internet store that sells directly to hard-to-reach customers. In this way, channel systems often evolve to meet market opportunities and conditions.

cross-functional teamwork inside the company

Most companies assign responsibility for various logistics activities to many different departments—marketing, sales, finance, operations, and purchasing. Too often, each function tries to optimize its own logistics performance without regard for the activities of the other functions. Because distribution activities involve strong trade-offs, decisions by different functions must be coordinated to achieve better overall logistics performance.

managing and motivating channel members

Once selected, channel members must be continuously managed and motivated to do their best. -The company must sell not only through the intermediaries but also to and with them.. In managing channel members, companies practice Partner Relationship Management (PRM) and Supply Chain Management (SCM) to develop long term relationships.' (company should convince distributor and supplier to work well together) ex: Amazon and P&G work closely to accomplish their joint goal of selling consumer package goods profiably online

intensive chuyen sau distribution

Producers of convenience products and common raw materials typically seek intensive distribution— a strategy in which they stock their products in as many outlets as possible. these should be availible for customers whenever they need it ex: toothpaste, candy, Coca Cola, consumer convience.

Warehousing nhà khu chứa hàng

Production and consumption cycles rarely match, so most companies must store their goods while they wait to be sold. A company must decide on how many and what types of warehouses it needs and where they will be located. The company might use either storage warehouses or distribution centers. Storage warehouses store goods for moderate to long periods

transportation

The choice of transportation carriers affects the pricing of products, delivery performance, and the condition of goods when they arrive—all of which will affect customer satisfaction. In shipping goods to its warehouses, dealers, and customers, the company can choose among five main transportation modes: - truck, rail, water, pipeline, and air, along with an alternative mode for digital products—the Internet.

Producers use intermediaries to create greater efficiency in making goods available to target markets ? How?

Through their contacts, experience, value delivery network specialization, and scale of operation (hoạt động), intermediaries usually offer the firm more than it can achieve on its own.

control issues

Using intermediaries usually means giving them some control over the marketing of the product, and some intermediaries take more control than others. -Other things being equal, the company prefers to keep as much control as possible.

How does multiplechannel offer advantages to companies facing large and complex market?

With each new channel, the company expands its sales and market coverage and gains opportunities to tailor its products and services to the specific needs of diverse customer segments.

horizontal marketing system

a channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity ex: Walmart partners with non-competitor McDonald's to place "express" versions of McDonald's restaurants in Walmart stores. McDonald's benefits from Walmart's heavy store traffic, and Walmart keeps hungry shoppers from needing to go elsewhere to eat. ex: , competing big media companies Fox Broadcasting, Disney-ABC, and NBCUniversal (Comcast) jointly own and market Hulu, and together they compete more effectively against digital streaming competitors such as Netflix. as competitors General Mills and Nestlé operate a joint venture—Cereal Partners Worldwide—to market General Mills BigG cereal brands in 130 countries outside North America. General Mills supplies a kitchen cabinet full of quality cereal brands, whereas Nestlé contributes its extensive (kien thức rộng) international distribution channels and local market knowledge.

economic criteria tieu chí

a company compares the likely sales, costs, and profitability of different channel alternatives. (thay thế) -What will be the investment required by each channel alternative, and what returns will result?

Franchise organization

a contractual vertical marketing system in which a channel member, called a franchisor, links several stages in the production-distribution process ex: In the United States alone, some 770,000 franchise outlets account for more than $830 billion of economic output. Industry analysts estimate that a new franchise outlet opens somewhere in the United States every eight minutes and that about one out of every 12 retail business outlets is a franchised business.

just in time (JIT)

a logistics process in which goods arrive when needed for production, use, or sale rather than sitting in storage "new supplies will be available when it need" ex: a company that markets office furniture but does not manufacture it may order the furniture from the manufacturer only when a customer makes a purchase. The manufacturer delivers it directly to the customer. The retailer has saved the cost of storing inventory. (hàng hoá chuan bi săn để xài khi cần)

marketing channel (distribution channel)

a set of interdependent (phụ thuộc lẫn nhau) organizations that help make a product or service available for use or consumption by the consumer or business user. distribution channels: -wholesalers, retailers, distributors, and the Internet. ex: (Wine and Adult drinks) -In this industry—thanks to laws born out of prohibition—a winery cannot sell directly to a retailer. It operates in the three-tier system, meaning the law requires the winery to first sell its product to a wholesaler who then sells to a retailer. The retailer then sells the product to the end consumer.

Financing

acquiring (thâu dc) and using funds to cover the costs of the channel work

Inventory Management

affects customer satisfaction. the company carry too little inventory and carrying too much. With too little stock the firm might risk not having products when customer want to buy. So, the firm needs costly emergency shipments or production. Carrying too much cause higher carrying cost. Managers must balance the costs of carrying larger inventories against resulting sales and profits

tying buộc agreement

are agreements where the dealer must take most or all of the line. the dealers refuse to cooperate in a doubtful legal arrangement, such as exclusive dealing or tying agreements.

distribution center

are designed to move goods rather than just store them.

risk taking

assuming the risks of carrying out the channel work

multimodal transportation

combining two or more modes of transportation

value delivery network

composed of the company, suppliers, distributors, and, ultimately (cuối cùng), customers who partner with each other to improve the performance of the entire system in delivering customer value ** make sure we deliver better value for customers, so we have to partner with each other. ex: Pepsi makes great beverages. But to make and market just one of its many lines- say, its classic colas Pepsi manages a huge network of people to folks in finance and operations. It coordinates the efforts of thousands of suppliers, bottlers, retailers ranging from Kroger and Walmart, Papa John's Pizza and advertising agencies and other marketing services firms. The entire network must function together to create customer value and establish the brand's "Pepsi: Live for now" positioning,

vertical conflict

conflict between different levels of the same channel, is even more common. ex: McDonald's has recently faced growing conflict with its corps (quân đoàn) of almost 3,000 independent franchisees (individual or group). In a recent company Webcast, based on rising customer complaints that service isn't fast or friendly enough, McDonald's told its franchisees that their cashiers need to smile more. At the same time, it seems, the franchisees weren't very happy with McDonald's, either because of a recent slowdown in systemwide sales that has both sides on edge.

marketing channels

consist of firms that have partnered for their common good with each member playing a specialized role. ex: Ford (hảng xe) depend on the dealer to enage in customers, persuade them to buy the car. Each Ford dealer also depend on other dealer to provide good and service to upholad the brand's reputation. The whole Fold should be depend on how well they work to compete with Toyota, Honda. ex: Samsung role is to produce electronics products that customers will convert and create demand through national advertising. Best Buy role is to display these Samsung products in convenient locations , answer buyer question, and complete sales. The channel will be most effective when each member assume task and do the best.

conventional distribution channel

consist of one or more independent producers, wholesalers, and retailers each separate business seeking to maximize its own profits, perhaps even at the expense of profits for the system as a whole. - No channel member control over other member, no formal means existing for assigning roles and resolving channel conflict. -have lacked leadership and power, often resulting in damaging conflict and poor performance producer --> wholesalers --> retailer --> consumer

Conventional distribution systems

consist of one or more independent producers, wholesalers, and retailers, each separate business seeking to maximize its own profits, perhaps even at the expense of profits for the system as a whole.

vertical marketing system

consist of producers, wholesalers, and retailers acting as a unified system. One channel member own the other, has contract with them, or wield so much power that they must all cooperate. -can be dominated by retailer, whosalers, producer. [producer, whosaler, retailer] --> consumer ex:Starbucks, in one of the best-known examples of vertical marketing, controls through ownership most of the coffee farms and all of the coffee roasters, distributors, warehouses and retail outlets that result in the final product - a cup of coffee - sold at its coffeehouses worldwide.

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. -Channel members coordinate their activities and manage conflict through contractual agreements The most common form is the franchise organization.

indirect marketing

contain one or more intermediates. producer --> distributors --> customers ex: most of the thing from camera, toothpaste to cars.

Distermediation

cutting out of marketing channel intermediaries by producers or the displacement (đỗi chổ) of traditional resellers by new intermediaries. ex: online music download services such as iTunes and Amazon MP3 have pretty much put traditional music-store retailers out of business

promotion

developing and spreading persuasive communications about an offer

logistic information management

eCompanies manage their supply chains through information. Channel partners often link up to share information and make better joint logistics -Information can be shared and managed in many ways, but most sharing takes place through electronic data interchange (EDI), the digital exchange of data between organizations, which is transmitted primarily via the Internet. ex: Walmart, for example, requires EDI links with its more than 100,000 suppliers through its Retail Link sales data system.

How does distribution system is complex and hard to penetrate in international country?

ex: many Western companies find Japan's distribution system difficult to navigate. It's steeped in tradition and very complex, with many distributors touching the product before it arrives on the store shelf. japan is more strict. and they care for customers health, food quality

service-firm-sponsored retailer franchise system

ex: -Burger King and its nearly 12,100 franchisee-operated restaurants around the world - everything from auto rentals, apparel retailers, and motels to supplemental education (Huntington Learning Center, Kumon) and -personal services (Great Clips, Mr. Handyman, Anytime Fitness).

Companies use imaginative distribution systems to gain a competitive advantage.

ex: 1. Enterprise Rent-A-Car revolutionized the car-rental business, 2. Apple selling music for the iPod via the Internet on iTunes 3. Amazon.com forever changed the face of retailing and became the Walmart of the Internet. Dell is selling its products directly to the consumer rather than through retailer.

Many type resellers in channel provides benefits and disadv

ex: by selling through retailers and value-added resellers in addition to its own direct channels, Dell can reach more and different kinds of buyers. However, the new channels will be more difficult to manage and control and the direct and indirect channels will compete with each other causing potential conflict. In fact, Dell often finds itself "stuck in the middle," with its direct sales reps complaining about competition from retail stores, whereas its value-added resellers complain that the direct sales reps are undercutting their business.

manufacture-sponsored wholesaler franchise system

ex: Coca-Cola licenses bottlers (nha đóng chai) (wholesalers) in various world markets that buy Coca-Cola syrup concentrate and then bottle and sell the finished product to retailers locally

Manufacturer-sponsored retailer franchise systems

ex: Ford (hảng xe) and its network of independent franchised dealers

Distribution channel decisions often involve long-term commitments to other firms.

ex: McDonald or Nike can easily change their advertising, pricing, or promotion programs. They can scarp old products and introduce new ones as market taste demand. But when they set up distribution channels through contracts with franchisees, independent dealers, or large retailers, they cannot replace these channels with company-owned stores or internet sites if the condition change. Therefore, management must design its channels carefully, with an eye on both today's likely selling environment and tomorrow's as well.

contact

finding and communicating with prospective (nguoi sau naỳ sẽ mua) buyers

Upstream partners

firms that supply raw materials, components (thành phần), parts, information, finances, and expertise (giám định) needed to create a product or service. The upstream stage of the production process involves searching for and extracting raw materials.

information

gathering and distributing information about consumers, producers, and other actors and forces in the marketing environment needed for planning and aiding (help) exchange

Directing Marketing

has no intermediary levels- the company sells directly to customer producer --> customer ex: Kay Comestics and Amway sell their products home and office sale parties, and online website and social media Companies ranging from GEICO insurance to Omaha Steaks sell directly to customers via internet, mobile and telephone channels

Downstream partners

include the marketing channels (kênh tiếp thị) or distribution channels (kênh phân phối) that look toward the customer, including retailers and wholesalers (who form a vital (important) link between the firm and its customers.) ex: (retailers) Walmart, Targert, -retailers buying products directly from manufactures or they can buy it from wholesalers. ex: (wholsalers) Costco, Sam's -Wholesaling is the process of buying products from the manufacturers at a lower price

Supply Chain Management

involves managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers

Marketing logistics (physical distribution)

involves planning, implementing(hoàn thành), and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet consumer requirements at a profit "getting the right product to the right customer at the right time"

administered vertical marketing system

is a VMS that coordinates successive stages of production and distribution through the size and power of one of the parties. leadership is assumed not through common ownership or contractual ties but through the size and power of one or a few dominant channel members. Manufacturers of a top brand can obtain strong trade cooperation and support from resellers. ex: GE, P&G, and Apple can command (chỉ huy) unusual cooperation from many resellers regarding displays, shelf space, promotions, and price policies. In turn, large retailers such as Walmart, Home Depot, Kroger, and Walgreens can exert a strong influence on the many manufacturers that supply the products they sell. For example, in the normal push and pull between Walmart and its consumer goods suppliers, giant Walmart—the biggest grocer in the United States with a 25 percent share of all U.S. grocery sales—usually gets its way so maintaining a strong relationship with the giant retailer is crucial. (Walmart has power because they know what we buy, what kind of items we buy, they know about consumers (consumer behavior) than manufacturer.)

exclusive distribution

is when the producer gives only a limited number of dealers the exclusive right to distribute its products in their territories when a seller allows only certain outlets to carry its product

exclusive dealing

is when the seller requires that the exclusive distribution sellers not handle competitor's products.

inbound logistics

moving products and materials from suppliers nhà cung cáp to the factory

Outbond logistics

moving products from the factory to resellers and ultimately to customers

horizontal conflict

occurs among firms at the same level of the channel. -For instance, Ford dealers in Chicago may complain dealers in the city steal sales from them by pricing too low or advertising outside their assigned territories. -Holiday Inn complaints about other Holiday Inn operators overcharging or giving poor service, hurting the overall image of the channel members.

negotiation (giao dich)

reaching an agreement on price and other terms so that ownership or possession (vat sở hữu) can be transferred

Type of intermediaries (identifying major alternatives)

refers to channel members available to carry out channel work. Most companies face many channel member choices. ex: , until recently, Dell sold directly to final consumers and business buyers only through its sophisticated phone and Internet marketing channel However, to reach more consumers and match competitors such as Samsung and Apple, Dell now sells indirectly through retailers such as Best Buy, Staples, and Walmart. It also sells indirectly through value-added resellers, independent distributors, and dealers that develop computer systems and applications tailored to the special needs of small- and medium-sized business customers

channel conflict

refers to disagreement over goals, roles, and rewards by channel members. horizontal conflict vertical conflict

reverse logistics

reusing, recycling, refurbishing tân trang, or disposing vứt bỏ of broken, unwanted, or excess products returned by consumers or resellers

Matching

shaping offers to meet the buyer's needs, including activities such as manufacturing, grading, assembling (hơp lại, ráp), and packaging

Goal of marketing logistics

should be to provide a targeted level of customer service at the least cost. .Unfortunately, as nice as this sounds, no logistics system can both maximize customer service and minimize distribution costs. The objective is to maximize profits, not sales. Therefore, the company must weigh the benefits of providing higher levels of service against the costs. Some companies offer less service than their competitors and charge a lower price. Other companies offer more service and charge higher prices to cover higher costs. (maximize profits)

third party logistics

supplier to warehouse to customer They charge you for: 1.Storage 2. picking 3.packaging 4. postage (bưu chính) (They do all of their logistics operations) -Addidas let Fedex ship their items to customers. ex: Fedex, Usps. Usps can handle a company's package shipments. But on deeper level, UPS can help businesses sharpern their own logistic with system cut cost and serve customer better

multichannel distribution system

systems in which a single firm sets up two or more marketing channels to reach one or more customer segments ex: John Deere sells its familiar green-and-yellow lawn and garden tractors, mowers, and outdoor power products to consumers and commercial users through several channels, including John Deere retailers, Lowe's home improvement stores, and online. It sells and services its tractors, combines, planters, and other agricultural equipment through its premium John Deere dealer network. And it sells large construction and forestry equipment through selected large, full-service John Deere dealers and their sales forces. :such as directly through physical stores, an online marketplace like Amazon, or through another large retail chain.

Selecting Channel Members

the company should determine what characteristics distinguish the better ones. It will want to evaluate each channel member's years in business, other lines carried, location, growth and profit record, cooperativeness (hop tác), and reputation. Producers vary in their ability to attract qualified marketing intermediaries. Some producers have no trouble signing up channel members and others have to work hard to line up enough qualified intermediaries. ex: when Timex first tried to sell its inexpensive watches through regular jewelry stores, most jewelry stores refused to carry them. The company then managed to get its watches into mass-merchandise outlets

integrated logistics management

the recognition that providing customer service and trimming distribution costs requires teamwork internally and externally Inside, the company's various departments must work closely together to maximize its own logistics performance. Outside, the company must integrate its logistics system with those of its suppliers and customers to maximize the performance of the entire distribution network.

selective distribution

the use of more than one but fewer than all of the intermediaries who are willing to carry a company's products. ex: Most consumer electronics, furniture, and home appliance brands are distributed in this manner. nhưng vật dụng chĩ có bán trong specific market, ko phải chổ nào cung có.

physical distribution

transporting and storing goods