Channels of Distribution
This chapter shows how the firm should choose marketing policies when its products are sold by distributors. It distinguishes between exclusive and nonexclusive distributors, show how the firm can coordinate its bricks-and-mortar and Internet pricing strategies to maximize performance, show how the firm should coordinate its price and advertising strategies when it sells through distributors, and discuss when the firm should use vertical integration strategies. In particular, it shows how the multiproduct firm should coordinate its channel strategy when the distributor also sells multiple products.
Keywords: channel coordination, distribution channels, internet pricing, multiproduct firm, risk-adjusted economic profit, slotting fees, supply chain, vertical integration
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