New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

Chapter 1 Book Notes

by: David Kavalerchik

Chapter 1 Book Notes 463

David Kavalerchik
GPA 3.2
View Full Document for 0 Karma

View Full Document


Unlock These Notes for FREE

Enter your email below and we will instantly email you these Notes for Marketing Channels and E-Commerce

(Limited time offer)

Unlock Notes

Already have a StudySoup account? Login here

Unlock FREE Class Notes

Enter your email below to receive Marketing Channels and E-Commerce notes

Everyone needs better class notes. Enter your email and we will send you notes for this class for free.

Unlock FREE notes

About this Document

These notes cover chapter 1 of "Marketing Channel Strategy ,8th Edition." Notes includes an overview of Channel Strategy Framework and benefits of intermediaries. Chapter 2 is where it goes into...
Marketing Channels and E-Commerce
Ann Trampas
Class Notes
ecommerce channels online shopping marketing mktg UIC MKTG 463 463 marketing strategy framework




Popular in Marketing Channels and E-Commerce

Popular in Marketing

This 3 page Class Notes was uploaded by David Kavalerchik on Friday January 29, 2016. The Class Notes belongs to 463 at University of Illinois at Chicago taught by Ann Trampas in Spring 2016. Since its upload, it has received 51 views. For similar materials see Marketing Channels and E-Commerce in Marketing at University of Illinois at Chicago.


Reviews for Chapter 1 Book Notes


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 01/29/16
Intermediary: any channel member other than the manufacturer or end­user. Three types:  Wholesaler, Retail and Specialized.   Wholesalers: Sells to other channel intermediaries but not end­users. They take title and full  possession of goods. Buy at wholesale price, sell for more downstream, pocket the difference.  Specialized: enter channel to perform specific task; insurance, financing, CC companies are  some examples. ____________________________________________________________________________ Why have marketing channels?  Benefits to downstream channel members:  Search Facilitation ­ Sellers without an already established brand name would be unable to  generate many sales.  Sorting ­  1. Sorting ­ citrus packing house sorts oranges by size and grade  2. Accumulation ­ combines similar stocks from multiple sources 3. Allocation ­ breaks supply down into smaller lots, helps downstream channel  members handle the supply easier 4. Assorting ­ builds up an assortment of products for resale Benefits to upstream channel members:  Routinization of Transactions ­ Amount, mode and timing of payment take time to negotiate for  every purchase. Costs are minimized when this is routine, no wasting time on bargaining for  prices. Leads to efficiency in the execution of channel activities.  Continuous Replenishment Programs (CRP) ­ Sends goods to retailer’s warehouses  automatically. Manufacturers and retailers share stock info to ensure goods aren’t  over/under stocked. Typically increases frequency of shipments but lowers the size per  shipment.  Fewer Contacts ­ Without channel intermediaries every producer would have to interact with  ­every potential buyer.  tl;dr ­ ­ ­ Marketing intermediaries reduce costs and add value to goods. ­ ­ ____________________________________________________________________________ Channel Strategy Framework 3 Stages; Analyzing & Designing, Benchmarking, Implementation.  Stage 1: Analyzing and Designing  Analysis Phase:  End­User Analysis ­ segmenting/targeting end­user groups.  Segmentation: splitting a market into groups of end­users who are either maximally  similar to one another and maximally different from other groups of end users. Value Added services created by channel members and consumed by end users  together with the product purchased represent service outputs. Service outputs include  bulk breaking, spatial convenience, waiting and delivery time, assortment and variety,  customer service, product/market/usage information sharing.  Channel Analysis ­ auditing channels and identifying channel gaps.  Channel management should rely on efficiency and gap analysis templates to perform  their evaluation. This template codifies information about the importance of each channel function in both cost and value terms as well as about the proportion of each function  performed by each channel member.  This produces normative profit share for each channel member. It tells you the  proportional value added to the total channel’s performance by each channel member.  Normative Profit Share ­ Answers the question, “How much value is this channel  member contributing?” Next, managers find the service and cost gaps.  Make vs Make­or­buy Analysis ­ determining if channel functions should be done in house or  outsourced to channel partners. Should the firm integrate vertically by performing both upstream and downstream functions? Or should outsourcing apply to either distribution or production or  both?  Decision Phase: Design Channel Structure & Strategy ­ focuses on making 3 key decisions: (degree of channel  intensity, mix/identity of channel types, and use of dual distribution) Also closing service and  cost gaps.  Stage 2: Benchmarking  Compares newly designed or revised channel structure and strategy against the most common  channel structures and strategies. The 3 most notable channel systems are retailing,  wholesaling, and franchising systems.  Stage 3: Implementing  Addresses 5 key success factors for effective channel management;  ● Power ● Conflict ● Relationships ● Policies and Legalities ● Logistics Channel Power ­ A channel member's power is its ability to control the decision of variables in  the marketing strategy of another member in a given channel at a different level of distribution. Channel Conflict ­ Generated when one channel member’s actions prevent the channel from  achieving its goals. 3 Types of Conflicts: goal, domain, and perceptual conflict.  Channel Logistics ­ Involves processing and tracking factory girls throughout the channel, during warehousing, inventory control, transport, customs documentation, and delivery. 


Buy Material

Are you sure you want to buy this material for

0 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."

Jennifer McGill UCSF Med School

"Selling my MCAT study guides and notes has been a great source of side revenue while I'm in school. Some months I'm making over $500! Plus, it makes me happy knowing that I'm helping future med students with their MCAT."

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."


"Their 'Elite Notetakers' are making over $1,200/month in sales by creating high quality content that helps their classmates in a time of need."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.