Marketing Channel Development and Management

By Russell W. McCalley | Go to book overview

High or frequent service influences the channel to be longer, while low service produces a shorter channel.

Facilitating Agency Functions in Channel Structure. This subject is covered as a separate topic in Chapter Four, "Channel Participants and Physical Distribution." In consideration of channel structure, the facilitating agencies (with one exception, noted in the next paragraph) play no direct part. The availability of facilitating agencies is considered to be sufficient for the market need. These are independent agents servicing the market for their own gain.

The one exception, in which facilitating agents may play a direct part in channel structure, regards physical distribution. When the product source can use a warehousing and shipping agency to provide local supply to its market, it may be able to eliminate one or all of the wholesaler intermediaries. These situations are discussed in Chapter Four.


SUMMARY

Channel structure is influenced by many factors. The starting place for the consideration of channel structure is the user. Building a new channel structure or selecting the use of an existing channel structure should start from the bottom (users) and work up to the manufacturer. A knowledge of the users in a market and their buying habits is critical to channel structure requirements. Of primary impact on a channel structure is the total number of potential users and their location in the market (market size and density). All the functions of product source, wholesaling, and retailing must be satisfied whether the channel is short or long and whether it is direct or has many intermediaries.

The structure of a marketing channel is determined by the user's requirements and the manufacturer's (or marketer's) capabilities to satisfy them.

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Marketing Channel Development and Management
Table of contents

Table of contents

  • Title Page iii
  • Contents ix
  • Tables xi
  • Foreword xiii
  • Preface xv
  • Introduction xvii
  • Part I - Physical Elements of Marketing Channel Development Structure 1
  • 1 - Marketing Channel Overview 3
  • Summary 12
  • 2 - Marketing Channel Participants and Their Functions 15
  • Summary 29
  • 3 - Marketing Channel Structure 31
  • Summary 42
  • 4 - Channel Participants and Physical Distribution 43
  • Summary 53
  • 5 - Market Characteristics and Channel Management 55
  • Summary 73
  • Part II - Product and Market Management Actions and Options 75
  • 6 - Organizing to Manage the Marketing Channel 77
  • Summary 87
  • 7 - Responsibility Effectiveness without Authority 89
  • 8 - Working with Sales and Marketing Statistics 101
  • Summary 117
  • 9 - Forecasting Sales and Market Share 119
  • Summary 141
  • 10 - Managing Products/Managing Markets 143
  • Summary 169
  • 11 - Managing Pricing Issues 173
  • Summary 186
  • 12 - Creating and Managing Marketing Programs 187
  • 13 - Legal Issues in Channel Management 217
  • References 227
  • 14 - The Marketing Channel Planning Process 229
  • 15 - Competitive Analysis 253
  • Summary 266
  • Annotated Bibliography 267
  • Index 273
  • About the Author 281
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