Products
   • Consumer
   • Organizational
         Value chain structures - consumer products
                                                           Consumer Products
                                                                 Producers
                                                             Supply Chains
                                                                                                 Sales
                                                                                                Agents
                                          Direct                       Wholesalers         Wholesalers
                                         Channel
                                                     Retailers           Retailers           Retailers
                                                                Consumers
  Value chain structures - organizational products
                                                              Organizational Products
                                                                          Producers
                                                                      Supply Chains
                                                                                           Sales               Sales
                                                                                          Agents               Agents
                                                Direct       Distributors            Distributors           Distributors
                                               Channel
                                                                                                            Re-sellers
                                                            Organizational Customers
        Factors Favoring Distribution by Manufacturer
         Profit margins          Opportunity for
         adequate to support     competitive        Rapidly changing
         distribution            advantage          market environment
         organization
           Complete line                                  Early stages of
           of products            Distribution            product life cycle
                                     by the
                                 manufacturer
           Purchases are                                  Complex product
           large and                                      application
           infrequent
              Small number of                        Extensive
              geographically        Supporting       purchasing
              concentrated          services are     process
              buyers                required
  Channel strategy selection
                                                1. Type of distribution channel
        Conventional                              Vertical marketing system                                   Horizontal
                                                                                                           marketing system
                                                                                Administered/
                                   Ownership              Contractual           Relationship
                                                   2. Intensity of distribution
          Intensive                                        Selective                                         Exclusive
                                                   3. Channel configuration