-
8/17/2019 MM - Marketing Channel
1/23
Marketing Channel
Presented by
K R Kumar [email protected]
-
8/17/2019 MM - Marketing Channel
2/23
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.
-
8/17/2019 MM - Marketing Channel
3/23
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.
-
8/17/2019 MM - Marketing Channel
4/23
!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
-
8/17/2019 MM - Marketing Channel
5/23
Categories of !uyersCategories of !uyers
Habitual shoppers
High value deal seekers
Variety-loving shoppers
High-involvement shoppers
-
8/17/2019 MM - Marketing Channel
6/23
(ypes of )hoppers (ypes of )hoppers
)ervice*+uality customers
,rice*value customers
A-nity customers
-
8/17/2019 MM - Marketing Channel
7/23
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
-
8/17/2019 MM - Marketing Channel
8/23
Marketing Channel lo2sMarketing Channel lo2s
-
8/17/2019 MM - Marketing Channel
9/23
Consumer Marketing ChannelsConsumer Marketing Channels
-
8/17/2019 MM - Marketing Channel
10/23
Designing aDesigning a
Marketing Channel )ystemMarketing Channel )ystem
Analyze customer needs
Evaluate major channel alternatives
Identify major channel alternatives
Establish channel objectives
-
8/17/2019 MM - Marketing Channel
11/23
Channel )ervice 1utputsChannel )ervice 1utputs
Lot size
aiting!delivery time
"patial convenience
#roduct variety
"ervice backup
-
8/17/2019 MM - Marketing Channel
12/23
$dentifying Channel Alternatives$dentifying Channel
Alternatives
$ypes of
intermediaries
%umber of
intermediaries
$erms and
responsibilities
-
8/17/2019 MM - Marketing Channel
13/23
3umber of $ntermediaries3umber of $ntermediaries
E&clusive
"elective
Intensive
-
8/17/2019 MM - Marketing Channel
14/23
(erms and &esponsibilities (erms and
&esponsibilities
of Channel Membersof Channel Members
,rice policy
Condition of sale
Distributors’ territorial rightsMutual services and
responsibilities
-
8/17/2019 MM - Marketing Channel
15/23
(he 4alue%Adds vs. Costs of (he 4alue%Adds vs. Costs
of
Di5erent ChannelsDi5erent Channels
-
8/17/2019 MM - Marketing Channel
16/23
!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
-
8/17/2019 MM - Marketing Channel
17/23
Channel%Management DecisionsChannel%Management Decisions
"electing channel members
$raining channel members
'otivating channel members
Evaluating channel members
'odifying channel members
-
8/17/2019 MM - Marketing Channel
18/23
Channel ,o2erChannel ,o2er
Coercive
&e2ard
6egitimate"#pert
&eferent
-
8/17/2019 MM - Marketing Channel
19/23
Channel $ntegration and )ystemsChannel $ntegration and
)ystems
Verticalmarketingsystems
Corporate 4M)
Administered 4M)
Contractual 4M)
Horizontal
marketingsystems
Multichannelsystems
-
8/17/2019 MM - Marketing Channel
20/23
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
-
8/17/2019 MM - Marketing Channel
21/23
Causes of ChannelCauses of Channel
Con7ictCon7ict
(oal incompatibility
)nclear roles and rights
*ifferences in perception
Intermediaries+ dependence
on the manufacturer
-
8/17/2019 MM - Marketing Channel
22/23
)trategies for Managing Channel)trategies for Managing
Channel
Con7ictCon7ict
Adoption of superordinate goals
"#change of
employees 9oint membershipin tradeassociations
Cooptation
Diplomacy
Mediation
Arbitration6egal recourse
-
8/17/2019 MM - Marketing Channel
23/23
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.
