View
28
Download
0
Category
Tags:
Preview:
Citation preview
Marketing Management A South Asian Perspective
Chapter 14: Designing and Managing Integrated Marketing Channels
Most producers do not sell their goods directly to the final users ; between them stands a set of intermediaries performing a variety of functions. These
intermediaries constitute a marketing channel.
Formally, marketing channels are sets of interdependent organizations participating in the process of making a product or a service available for use or consumption
Intermediaries • Merchants
(wholesalers &
retailers)• Agents(sales agents,
brokers)• Facilitators
(advertising agencies,
transportation
companies)
A marketing channel system is a particular set of marketing channels a firm employs, and decisions about it are among the most critical ones management faces.
Marketing channels must not just serve markets, but also make markets.
Channel chosen affects all other marketing decisions.
In managing intermediaries, the firm must decide how much effort to devote to push versus pull marketing.
PUSH PULL
uses means to induce
intermediaries to carry, promote
an sell the product
Appropriate when • Low brand loyalty• Brand choice is
made in store• Product benefits
are well understood
Manufacturer uses forms of
communication to persuade
consumers to buy product from
intermediaries.
Appropriate when• High brand
loyalty• Consumers can
differentiate products
• Choose brand before they go to
the store
Hybrid Channels and Multichannel Marketing
Occurs when a single firm uses two or more marketing channels to reach customer segments.
Each channels targets a different segment of buyers and delivers the rights products in the right places in the right way at the least cost.
Value network is a system of partnerships and alliances that a firm creates to source, augment, and deliver its offerings
It includes a firm’s suppliers and its suppliers’ suppliers and its immediate customers and their end customers.
Recommended