TAILIEUCHUNG - Lecture Marketing channel strategy: Chapter 3 - TS. Đinh Tiến Minh

Lecture Marketing channel strategy - Chapter 3: Channel analysis - Auditing marketing channels" has contents: Auditing marketing channels, physical possession, inventory holding costs, information sharing,. And other contents. | 1/21/2018 Chapter 3: Channel Analysis: Auditing Marketing Channels DINH Tien Minh Auditing Marketing Channels • Auditing what channel functions get performed by each channel member in the existing channel system, by whom, at what levels, and at what cost, provides several important benefits: 1. Diagnose and remedy shortcomings in the provision or price of service outputs to targeted segments. 2. An audit may identity gaps in service outputs desired by targeted end-user segments. 3. Knowing which channel members have incurred the costs of performing which channel functions helps members allocate channel profits equitably. CHANNEL AUDIT CRITERIA: CHANNEL FUNCTIONS Physical Possession/ Ownership Producers Physical Possession/ Ownership Physical Possession/ Ownership Promotion Promotion Promotion Negotiation Negotiation Negotiation Financing Wholesalers Financing Retailers Financing Risking Risking Risking Ordering Ordering Ordering Payment Payment Information sharing Information sharing Consumers Industrial and Household Payment Information sharing Commercial Channel Subsystem 1 1/21/2018 Physical possession • Physical possession refers to channel activities pertaining to the storage of goods, including transportation between channel members. • The costs of running warehouses and transporting products from one location to another are physical possession costs. • For product returns ,physical possession and its management drive the channel function's very shape, including who its members are and where the product ultimately will wind up Ownership • When a channel member takes title to goods, it bears the cost of carrying the inventory; its capital is tied up in product (whose opportunity cost is the next highest value use of that money). • In many distribution systems, physical possession and owmership move together through the channel, but this pairing is neither necessary nor universal. Inventory holding costs • Inventories refer .

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