Core Concepts of Marketing

CHAPTER 10

CHANNEL CONCEPTS:

DISTRIBUTING THEPRODUCT

LEARNINGOBJECTIVES

Afterreadingthischapter,you should:

• Gaininsightintotheroleofdistributionchannels.


• Understandthemethodsused inorganizing channels.


• Understandthemanagementofunderlyingbehavioraldimensions
  presentinmostchannels.


• Comprehendtheelements ofachannelstrategy


• Understarldthetasksassignedto variouschannel institutions.

SAMSIGHTINGSAREEVERYWHERE

W e beganthis bookwithsomeinsightsonElvisPresleyandrelatedmarketing

problems.ComparedtoSamWalton,Elvissightingsarenonexistent.ThespiritofSam

WaltonpermeatesvirtuallyeverycornerofAmerica.Thissmall-townretailerhaspro-

duceda legacyofU.S.salesof$1 18 billion, or7 %ofallretailsales.IntheU.S.,Wal-

Marthas1,921discount~;tores, 512 supercenters,and 446 Sam':>Clubs.Wal -Mart

recentlychallengedlocal supermarketsbyopeningtheirnewformat:NeighborhoodMar-

kets.Overall,theyhavemorethan800,000 peopleworkinginmorethan3,500storesan

fourcontinents.

Today,Wal-Martisthelargestsellerofunderwear,soap,toothpaste;,children's

cl othes,books, videos,andcompactdisc s. Howcanyouchallenge theirInternetofferings

thatnownumbermorethan 500,000,withplannedexpansionofmorethan3,000,000?Or

thefactthat01'Roy(namedafterSam'sIrishsetter)isnowthebest-selling dogfood

brandinAmerica?Besides01'Roy,Wal-Mart'sgardenfertilizerhasalsobecomethe

best-sellingbrandintheU.S.initscategory,ashasitsSpringValleylineofvita!1lins.

Sohowdoyoubeata behemothlikeWal-Mart? Oneretailexperttackled::hisques-

tionin hi s autobiography.Hesuggests 10 waystoaccomplishthisgoal:(1)havea strong

commitment toyourbusiness;(2)involveyourstaffindecisionmaking; (3)listento

yourstaffandyourcustomers;(4)learnIi0Wtocommunicate;(5)appreciatea goodjob;

(6)havefun;(7)sethighgoalsforstaff; (8)promise a lot,butde~jvermore;(9)watchyour

expenses;and(10)Sndoutwhatthecompetitionisdoingcmddosomethingdifferent.

Theauthorofthisal' tobiography:MadeinAmerica-SamWalton.

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