Post on 08-Apr-2018
8/7/2019 Market Ting Ppt
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!! & !!
VALUE NETWORK
!! & !!
VALUE NETWORK
Submitted to :
Mr. Sanjay Nandal
Submitted to :
Mr. Sanjay NandalSubmitted by:
Deepak
Roll no . 2414 MBA 2.2 ( BE)
Submitted by:
Deepak
Roll no . 2414 MBA 2.2 ( BE)
8/7/2019 Market Ting Ppt
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What is a marketing channel?A marketing channel is a set of practices or
activities necessary to transfer the ownership of goods,and to move goods, from the point of production to the
point of consumption.
It is a formal structure for sales and distribution.
8/7/2019 Market Ting Ppt
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R ole of Marketing channel
y Links producers to buyers.
y Performs sales, advertising and promotion.
y Transport, store, and deliver products .
y motivate, communicate, and provide services for
customers
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K inds of Marketing ChannelsTo reach the target market, marketers use three
kinds of marketing channels
Co mmunicati o n channels :Two-way systems, with information flowing
from the marketer to the consumer and back from the
consumer .Includes advertising, pr o m o ti o nal literature,
trade pr o m o ti o ns, mail, teleph o ne campaigns, pr o ducttraining , and any vehicle of marketing information .
8/7/2019 Market Ting Ppt
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Marketing channels:D istributi o n C hannels :
The act of transferring product titles from onechannel member to another require a series of intermediaries such as wh o lesalers , br o kers , agents , and
retailers before the final act of transferring the product tothe consumer is completed
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Marketing Channels:S ervice C hannels :
Used to carryout transactions with potential buyers.Service channels include wareh o uses, transp o rtati o nco mpanies, banks, and insurance c o mpanies thatfacilitate transactions.
Marketers face the design problem of choosing thebest mix of communication, distribution and servicechannels for their offering .
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M arketing C hannelsM arketing C hannels
Sets of interdependent organizations
involved in the process of makinga product or service availablefor use
or consumption.
Ma r keting ChannelInte rm edia r iesP r oduce r Consu m e r s
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Push vs Pull Strategiesy A Push strategies involves the manufacturer using sales force
and trade promotion money to induce intermediaries to carry,promote and sell the product to end users.
y A Pull strategy involves the manufacturer using advertising andpromotion to persuade consumers to ask intermediaries forthe product, thus inducing the intermediaries to order it.
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Creates UtilityMarketing / Distribution Channels create Time, Place,Possession/ownership utility.
y Delivered at the right time - TIME UTILITYy Delivered at the right place - PLACE UTILITYy With appropriate legal requirements - POSSESSION /
OWNE R SHIP UTILITY
8/7/2019 Market Ting Ppt
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Marketing Channel Flows
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Consumer Marketing Channels
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Industrial Marketing Channels
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Types of Intermideatersyy I ntensiveI ntensive distributi o ndistributi o n : Channel policy in which a
manufacturer of a convenience product attempts tosaturate the market
yy S electiveS elective distributi o ndistributi o n : Channel policy in which a firmchooses only a limited number of retailers to handle its
product line
yy
Ex clusiveEx clusive distributi o ndistributi o n : Channel policy in which a firmgrants exclusive rights to a single wholesaler or retailer tosell its products in a particular geographic area
8/7/2019 Market Ting Ppt
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Types«.
IntensiveDist r ibution
Ex clusiveDist r ibution
L evi¶s W o men¶s503 Jeans
SelectiveDist r ibution
8/7/2019 Market Ting Ppt
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The Value-Adds Vs Costs of DifferentChannels
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Bases of Powe r fo r ChannelBases of Powe r fo r Channel
Cont r olCont r oly R eward p o wer is based on perception held by channel member thatanother group has the ability to provide rewards for varying performances.
y Co ercive p o wer is based on perception held by channel member that
another group has the ability to inflict punishment.
y L egitimate P o wer is based on perception held by channel member thatanother group has the right to influence the formers action.
y R eferent P o wer is based on perception held by channel member thatanother group should be identified with as copying the latter style, beliefs andactions. Exmp. IBM,HEWLETT-PAC K WA R D have high referent power.
y Ex pert P o wer is based on perception held by channel member thatanother group should be identified with latter¶s knowledge and expertise.
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Marketing Debate
Does it m atte r whe r e you a r e sold?
Take a position:1. Channel images do not really affect the
brand images of the products they sell.2. Channel images must be consistent with
the brand image.