MM - Marketing Channel
Transcript of MM - Marketing Channel
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Marketing Channel
Presented by
K R Kumar [email protected]
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What is a MarketingWhat is a Marketing
Channel?Channel?A marketing channel system isthe particular set of
interdependent organizations
involved in the process of makinga product or service available for
use or consumption.
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Channels andChannels and
Marketing DecisionsMarketing Decisions
A push strategy uses themanufacturer’s sales force tradepromotion money and other means to
induce intermediaries to carry promoteand sell the product to end users.
A pull strategy uses advertisingpromotion and other forms of
communication to persuade consumersto demand the product fromintermediaries.
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!uyer "#pectations for!uyer "#pectations for
Channel $ntegrationChannel $ntegration
Ability to order aproduct online and pickit up at a convenient
retail locationAbility to return an
online%ordered productto a nearby store
&ight to receivediscounts based ontotal online and o'inepurchases
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Categories of !uyersCategories of !uyers
Habitual shoppers
High value deal seekers
Variety-loving shoppers
High-involvement shoppers
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(ypes of )hoppers (ypes of )hoppers
)ervice*+uality customers
,rice*value customers
A-nity customers
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Channel MemberChannel Member
unctionsunctions/ather informationDevelop and disseminate persuasive
communications
&each agreements on price and termsAc+uire funds to 0nance inventories
Assume risks
,rovide for storage
,rovide for buyers’ payment of theirbills
1versee actual transfer of o2nership
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Marketing Channel lo2sMarketing Channel lo2s
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Consumer Marketing ChannelsConsumer Marketing Channels
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Designing aDesigning a
Marketing Channel )ystemMarketing Channel )ystem
Analyze customer needs
Evaluate major channel alternatives
Identify major channel alternatives
Establish channel objectives
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Channel )ervice 1utputsChannel )ervice 1utputs
Lot size
aiting!delivery time
"patial convenience
#roduct variety
"ervice backup
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$dentifying Channel Alternatives$dentifying Channel Alternatives
$ypes of
intermediaries
%umber of
intermediaries
$erms and
responsibilities
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3umber of $ntermediaries3umber of $ntermediaries
E&clusive
"elective
Intensive
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(erms and &esponsibilities (erms and &esponsibilities
of Channel Membersof Channel Members
,rice policy
Condition of sale
Distributors’ territorial rightsMutual services and responsibilities
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(he 4alue%Adds vs. Costs of (he 4alue%Adds vs. Costs of
Di5erent ChannelsDi5erent Channels
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!reak%"ven Chart for the Choice !et2een a!reak%"ven Chart for the Choice !et2een a
Company )ales orce and Manufacturer’sCompany )ales orce and Manufacturer’s
)ales Agency)ales Agency
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Channel%Management DecisionsChannel%Management Decisions
"electing channel members
$raining channel members
'otivating channel members
Evaluating channel members
'odifying channel members
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Channel ,o2erChannel ,o2er
Coercive
&e2ard
6egitimate"#pert
&eferent
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Channel $ntegration and )ystemsChannel $ntegration and )ystems
Verticalmarketingsystems
Corporate 4M)
Administered 4M)
Contractual 4M)
Horizontal
marketingsystems
Multichannelsystems
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What is Channel Con7ict?What is Channel Con7ict?
Channel confict occurs 2henone member’s actions prevent
another channel from achieving
its goal. (ypes of channel con7ict
◦ 4ertical
◦ 8orizontal◦ Multichannel
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Causes of ChannelCauses of Channel
Con7ictCon7ict
(oal incompatibility
)nclear roles and rights
*ifferences in perception
Intermediaries+ dependence
on the manufacturer
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)trategies for Managing Channel)trategies for Managing Channel
Con7ictCon7ict
Adoption of superordinate goals
"#change of
employees 9oint membershipin tradeassociations
Cooptation
Diplomacy
Mediation
Arbitration6egal recourse
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Marketing DiscussionMarketing Discussion
$hink of your favorite retailers, Ho have they integrated their
channel system. Ho ould you like their channels to
be integrated.
*o you use multiple channels fromthem. hy.