This is a summary of the Marketing Channel Management webclips for the master Marketing Management and Marketing Analytics at Tilburg University. Written in English.
The document contains all the webclips from the course Marketing Channel Management.
Simplest distribution channel
See the image on the right. à
Why know about channel management?
• Channels are universal: so are channel decisions,
behind every product/service; one or more channels
• Channels are important in economic terms
• Channels can be a source of competitive advantage
The retail apocalypse
Stores are closing. Retailers are suffering. A lot of bankruptcy. Caused by the shift from offline to online.
In the Netherlands 10.3% of sales occur online. In the USA 14.9% of the sales occur online.
Exam info
Written, closed book, English (1005)
• Number of statements: true or false, including statement why
• Mini case studies: apply the theory and justify
WEBCLIP 2.1 CHANNEL DESIGN - WHY GO (IN)DIRECT?
Two types of channels:
1. Direct channels
Sell your product to the consumer directly. If you sell directly, the manufacturer remains the owner of
the products, holds the inventory and sets the consumer price.
2. Indirect channels
Sell your product to the consumers through independent companies, specialized in retail. You sell your
products to one or more middlemen’s (or; resellers, retailers, intermediary) who will move your
products to the consumers. Can be physical and online retailers. The middlemen are always
independent firms, not owned by manufacturer. They buy products and then they own these products
and hold them in inventory. They set the consumer price for the products (not the manufacturer).
Because the middlemen own the product.
MARKETING CHANNEL MANAGEMENT 2
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