Integrated Marketing Channels-prince dudhatra-9724949948

8/7/2019 Integrated Marketing Channels-prince dudhatra-9724949948

1/19

Designing and Managing

Integrated

Marketing Channels

Marketing Management, 13th ed

15


2/19


3/19

prince dudhatra-9724949948

What is a Marketing Channel?

A marketing channel system is the

particular set of interdependent

organizations involved in the process ofmaking a product or service available

for use or consumption.


4/19


Channels and

Marketing Decisions

A push strategy uses the manufacturerssales force, trade promotion money, andother means to induce intermediaries tocarry, promote, and sell the product to endusers

A pull strategy uses advertising, promotion,and other forms of communication to

persuade consumers to demand the productfrom intermediaries


5/19


Buyer Expectations for

Channel Integration

Ability to order a product online and pick it up

at a convenient retail location

Ability to return an online-ordered product to

a nearby store

Right to receive discounts based on total

online and offline purchases


6/19


Categories ofBuyers

Habitual shoppers

High value deal seekers

Variety-loving shoppers High-involvement shoppers


7/19


Types of Shoppers

Service/quality customers

Price/value customers

Affinity customers


8/19


Channel Member Functions

Gather information

Develop and disseminate persuasive

communications

Reach agreements on price and terms

Acquire funds to finance inventories

Assume risks

Provide for storage

Provide for buyers payment of their bills

Oversee actual transfer of ownership


9/19


Designing a

Marketing Channel System

Analyze customer needs

Establish channel objectives

Identify major channel alternatives Evaluate major channel alternatives


10/19


Channel Service Outputs

Lot size

Waiting/delivery time

Spatial convenience Product variety

Service backup


11/19


Identifying Channel Alternatives

Types of intermediaries

Number of intermediaries

Terms and responsibilities


12/19


Number of Intermediaries

Exclusive

Selective

Intensive


13/19


Terms and Responsibilities

of Channel Members

Price policy

Condition of sale

Distributors territorial rights Mutual services and responsibilities


14/19


Channel-Management Decisions

Selecting channel members

Training channel members

Motivating channel members

Evaluating channel members

Modifying channel members


15/19


Channel Power

Coercive

Reward

Legitimate

Expert

Referent


16/19


Channel Integration and Systems

Vertical marketing systems

Corporate VMS

Administered VMS Contractual VMS

Horizontal marketing systems

Multichannel systems


17/19


What is Channel Conflict?

Channel conflict occurs when one

members actions prevent another

channel from achieving its goal.

Types of channel conflict

Vertical

Horizontal

Multichannel


18/19


Causes of Channel Conflict

Goal incompatibility

Unclear roles and rights

Differences in perception Intermediaries dependence on

manufacturer


19/19


Table 15.3 Strategies for Managing

Channel Conflict

Adoption of

superordinate goals

Exchange of

employees

Joint membership in

trade associations

Cooptation

Diplomacy

Mediation

Arbitration

Legal recourse

Documents

Integrated Marketing Channels-prince dudhatra-9724949948