CHANNELIiIJSTITUTIONS:CP.PABILITIESANDLIMITATIONS 257
Manufacturer I
I
I , I I
,
I I
Electrical Hardware Autoparts Aircraft Electronic Neonsign Welding
distributors wholesalers warehousedistributors distributorsparts distributorsparts housessupply distributorsequipment
I I I ,-'-- I
Autoparts Airport Neonsign Manufacturers
wholesalers maintenanceshops OEM manufacturers ofsupplieswelding
~
Airlines I
Garages maintenance Radio,TV,
departments andelectronic
equipment
repairand
Service Aircraft service
stations manufacturerscomponents
I I
Repairand Auto Welders Industrials
serviceshops dealers
Fleet
owners
Marine
maintenance
shops
FIGURE10.3 Marketingchannelsofamanufacturerofelectricalwireandcable
Source:EdwinH.Lewis,MarketingElectricalApparatusandSupplies,McGraw-Hili,Inc.,1961,p.215.
deliveringtheirproductintheform,attheplaceandtimetheircustomerdemands.Banks
haverespondedbydevelopingbank-by-mail,AutomaticTellerMachines(ATMs),andother
distributionsystems.Themedicalcommunityprovidesemergencymedicalvehicles,out-
patientclinics,24-hourclinics,andhome-careproviders. AsnotedinFigurelOAevenper-
formingartsemploydistributionchannels.Inallthreecases,theindustriesareattempting
tomeetthespecialneedsoftheirtargetmarkets whiledifferentiatingtheirproductfrom
thatoftheircompetition.Achannelstrategyisevident.
ChannelInstitutions:CapabilitiesandLimitations
Thereareseveraldifferenttypesofpartiesparticipatinginthemarketingchannel.Some
aremembers,whileothersarenonmembers. Theformerperformnegotiationfunctionsand
participateinnegotiationand/orownershipwhilethelatterparticipantsdonot.
ProducerandManufacturer
Thesefirmsextract,grow, ormakeproducts.Awidearrayofproductsisincluded,2,ndflrm~
varyinsizefroma one-personoperationtothosethatemployseveralthousandpeopieand
