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Channels - Coggle Diagram
Channels
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Channel Conflict
Horizontal Channel Conflict
- Happens at the same level within one distribution channel
- Eg: two retailers belonging to the same manufacturer have a discrepancy in terms of promotional schemes or area coverage (i.e: ABC store & Value Dollar store)
General solution:
- Price the product in a fair way across channels, not favoring either channels
- Create joint promotions & marketing campaigns for all channels
Vertical Channel Conflict
- Amongst level within the same distribution channel
- Eg: Wholesaler & manufacturer could have dispute over a product's price
- Vertical marketing system
- Members at different levels (vertical) work together in a unified way (system) to accomplish work of channel due to contractual or administrative power
Contractual
- Franchising: Independent small business owner who operates 3rd party retail outlet (Proprietary business knowledge, process, & trademarks [eg: Fast-Food]
Administrative
- Cooperation from resellers regarding displays, shelf space, promotions & pricing policies
- FairPrice, Ikea can exert strong influence on the manufacturer
Marketing Channel
- Individuals & firms are involved in the process of making a product or service available for use or consumption by consumers or industrial users
Distribution of films
- Studio make licensing agreement with distribution company
- Distribution company determines # of film copies to make
- Distribution shows movie (screening) to prospective buyers (Theatres)
- Buyers negotiate the lease agreement with Distribution company
- Theatre shows the movie for specific # of weeks
- Consumers buys a ticket to watch the move
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