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What is Marketing Channel System and Value Network ?

What is marketing channel system and value network ?

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Page 1: What is marketing channel system  and value network ?

What is Marketing Channel System and Value Network ?

Page 2: What is marketing channel system  and value network ?

Intermediaries between producers and final users constitute a marketing channel or trade channel or distribution channel.

Page 3: What is marketing channel system  and value network ?

A marketing channel system is the particular set of marketing channels a firm employs, and decisions about it are the most critical

ones management faces.

Page 4: What is marketing channel system  and value network ?

Marketing channels chief role is to convert potential buyers into

profitable customers.

Page 5: What is marketing channel system  and value network ?

In managing its intermediaries, the firm uses the combination of the following types of marketing :

Page 6: What is marketing channel system  and value network ?

Push strategy uses manufacturer’s sales force, trade promotion money to induce intermediaries to carry, promote and sell product to end users.

Page 7: What is marketing channel system  and value network ?

In Pull strategy, manufacturer uses advertising, promotion etc. to persuade consumers to demand product from intermediaries.

Page 8: What is marketing channel system  and value network ?

Top marketing companies like CocaCola and Nike skilfully employ both push and pull strategies.

Page 9: What is marketing channel system  and value network ?

Philips, one of the world’s b i g g e s t e l e c t r o n i c s companies use multichannel marketing to get access to even the most remote customers.

!The company offers broad

range of products through : Mass merchants Retail chains Speciality chain stores Via web Via online retailers Small stores

Page 10: What is marketing channel system  and value network ?

Value network - a system of partnerships and alliances that a firm creates to source , augment, and deliver its offerings.

Page 11: What is marketing channel system  and value network ?

Apple Developer’s connection which has 50,000 members

keep 70% of any revenue their products generate, and Apple

gets 30%.

Page 12: What is marketing channel system  and value network ?

Company can estimate whether more money is made upstream or downstream, in case it can integrate forward

or backward.

Through Demand chain planning :

11

Page 13: What is marketing channel system  and value network ?

Company is more aware of the disturbances in the supply chain that might change costs, prices or supplies.2

Page 14: What is marketing channel system  and value network ?

3Companies can go online with their business partners to speed communications, transactions, and payments;

reduce costs and increase accuracy.

Page 15: What is marketing channel system  and value network ?

Created by NILESH RANA of IIT BHU under the guidance of Prof. SAMEER MATHUR , IIM LUCKNOW

www.iiminternship.com

Thank you !