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Kotler-mm15e-inppt 17
Marketing management
Course
Marketing Management (2020)
25 Documents
Students shared 25 documents in this course
University
Hebron University
Academic year: 2021/2022
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Copyright © 2016 Pearson Education Ltd. 17 - 1
Chapter
17
Designing
And Managing
Integrated
Marketing
Channels
Copyright © 2016 Pearson Education Ltd. 17 - 2
Learning Objectives
1. What is a marketing channel system and value
network?
2. What work do marketing channels perform?
3. How should channels be designed?
4. What decisions do companies face in managing
their channels?
5. How should companies integrate channels?
Copyright © 2016 Pearson Education Ltd. 17 - 3
Learning Objectives
6. What are the key channel issues in e-
commerce?
7. What are the key channel issues in m-
commerce?
8. How should companies manage channel
conflict?
Copyright © 2016 Pearson Education Ltd. 17 - 4
Marketing Channels
and Value Networks
• Marketing channels
– Sets of interdependent
organizations participating
in the process of making a
product or service
available for use or
consumption
– Intermediaries:
merchants, agents, and
facilitators
Copyright © 2016 Pearson Education Ltd. 17 - 7
Figure 17.
The Hybrid Grid
Copyright © 2016 Pearson Education Ltd. 17 - 8
Marketing Channels
and Value Networks
• Value network
– A system of partnerships and alliances that a
firm creates to source, augment, and deliver
its offerings
– Demand chain planning
Copyright © 2016 Pearson Education Ltd. 17 - 9
Marketing Channels
and Value Networks
• The digital channels
revolution
– Customer support in
store/online/phone
– Check online for product
availability at local stores
– Order product online to
pick up at store
– Return a product
purchased online to a
nearby store
Copyright © 2016 Pearson Education Ltd. 17 - 10
The Role of
Marketing Channels
• Channel functions and flows
Copyright © 2016 Pearson Education Ltd. 17 - 13 Figure 17. Consumer/Industrial Marketing Channels Copyright © 2016 Pearson Education Ltd. 17 - 14 Channel-Design Decisions
- Analyzing customer needs and wants Desired lot size Waiting and delivery time Spatial convenience Product variety Service backup
Copyright © 2016 Pearson Education Ltd. 17 - 15 Channel-Design Decisions
- Establishing objectives and constraints Copyright © 2016 Pearson Education Ltd. 17 - 16 Channel-Design Decisions
- Identifying major channel alternatives Types of intermediaries Number of intermediaries Terms/responsibilities of channel members
Copyright © 2016 Pearson Education Ltd. 17 - 19 Channel-Design Decisions
- Evaluating major channel alternatives
- Economic criteria
- Control and adaptive criteria Copyright © 2016 Pearson Education Ltd. 17 - 20 Figure 17. Break-Even For Sales Force vs. Sales Agency
Copyright © 2016 Pearson Education Ltd. 17 - 21
Channel-Management
Decisions
Selecting
channel
members
Training
channel
members
Evaluating
channel
members
Modifying
channel
design
Channel
modification
decisions
Global channel
considerations
Copyright © 2016 Pearson Education Ltd. 17 - 22
Training and Motivating Channel
Members
Coercive
Reward
Legitimate
Expert
Referent
• Channel power
Copyright © 2016 Pearson Education Ltd. 17 - 25
Vertical
Marketing Systems
• Corporate VMS
• Administered VMS
• Contractual VMS
– Wholesaler-sponsored voluntary chains
– Retailer cooperatives
– Franchise organizations
• New competition in retailing
Copyright © 2016 Pearson Education Ltd. 17 - 26
E-Commerce
Marketing Practices
• E-commerce
– Uses a Web site to transact or facilitate the
sale of products and services online
• Pure-click vs. brick-and-click companies
Copyright © 2016 Pearson Education Ltd. 17 - 27
M-Commerce
Marketing Practices
• Mobile channels and media can keep
consumers as connected and interacting
with a brand as they choose
– Advertising and promotion
– Geofencing
• Privacy issues
Copyright © 2016 Pearson Education Ltd. 17 - 28
Conflict, Cooperation,
and Competition
• Channel conflict
– Generated when one channel member’s
actions prevent another channel member from
achieving its goal
• Channel coordination
– Occurs when channel members are brought
together to advance the goals of the channel
instead of their own potentially incompatible
goals
Copyright © 2016 Pearson Education Ltd. 17 - 31
Conflict, Cooperation,
and Competition
Copyright © 2016 Pearson Education Ltd. 17 - 32
Conflict, Cooperation,
and Competition
• Dilution and cannibalization
– Marketers must be careful not to dilute their
brands through inappropriate channels
• Legal and ethical issues in channel
relations
– Exclusive dealing/territories, tying
agreements, and dealers’ rights
- Copyright © 2016 Pearson Education Ltd. 17 -
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Kotler-mm15e-inppt 17
Course: Marketing Management (2020)
25 Documents
Students shared 25 documents in this course
University: Hebron University
Was this document helpful?
30-Nov-17
1
Copyright © 2016 Pearson Education Ltd. 17-1
Chapter
17
Designing
And Managing
Integrated
Marketing
Channels
Copyright © 2016 Pearson Education Ltd. 17-2
Learning Objectives
1. What is a marketing channel system and value
network?
2. What work do marketing channels perform?
3. How should channels be designed?
4. What decisions do companies face in managing
their channels?
5. How should companies integrate channels?
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