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Channels Channels Presentation Transcript

  • MANAGING MARKETING CHANNELS OF DISTRIBUTION
  • APPLE STORES: CREATING A HIGH-TOUCH CUSTOMER EXPERIENCE IN A HIGH-TECH MARKETING CHANNEL
  • The variety of terms used for marketing intermediaries that vary in use in consumer and business markets
  • Intermediaries minimize transactions and the cost of distribution for producers and customers
  • NATURE AND IMPORTANCE OF MARKETING CHANNELS THE VALUE CREATED BY INTERMEDIARIES
    • Marketing Channel
    • Functions Performed by Intermediaries
    • Transactional Function
    • Logistical Function
    • Facilitating Function
    • Utilities Received by Consumers
  • Marketing channel intermediaries perform three functions, each consisting of different activities
  • CHANNEL STRUCTURE & ORGANIZATION MARKETING CHANNELS FOR CONSUMER GOODS AND SERVICES
    • Direct Channel
    • Indirect Channel
    • Retailers
    • Wholesalers  Retailers
    • Agents  Wholesalers  Retailers
  • Common marketing channels for consumer offerings by the kind and number of intermediaries
  • One Telecom Company’s Consumer Market Channels CUSTOMER ACQUISITION Business Office Smart Moves Newcomer Agents CUSTOMER DEVELOPMENT Best Customer Centers RSC Service Upselling Direct Mail Outbound Telemarketing Welcome Package Directory MASS MEDIA Advertising Response TV Radio Print Specialty MAILBOX MARKETING Direct Mail Catalog Internet FACE TO FACE Retail Stores Express Kiosks National Retailers Local Agents Direct Sales LIFESTYLE INTERCEPT Military Campus Retirement Kids Away Event Marketing On the Move AFFINITY Employee/ Employer Associations Co-Marketing Partners
  • CHANNEL STRUCTURE & ORGANIZATION MARKETING CHANNELS FOR BUSINESS GOODS AND SERVICES
    • Direct Channel
    • Indirect Channel
    • Industrial Distributor
    • Agents
    • Agents  Industrial Distributors
  • Common marketing channels for business offerings by the kind and number of intermediaries
  • CHANNEL STRUCTURE & ORGANIZATION ELECTRONIC & DIRECT MARKETING CHANNELS; MULTICHANNEL MARKETING
    • Electronic Marketing Channels
    • Direct Marketing Channels
    • Multichannel Marketing
  • Consumer electronic marketing channels are similar to those for consumer and business offerings
  • CHANNEL STRUCTURE & ORGANIZATION DUAL DISTRIBUTION & STRATEGIC CHANNEL ALLIANCES
    • Dual Distribution
    • Strategic Channel Alliances
  • HELP YOUR CHILD FEEL BETTER WITH TRIAMINIC ® PRODUCTS AND A REDBOX MOVIE RENTAL
  • 1. Customers demand it. 2. Market access. 3. Lower marketing and selling expenses. 4. Distributors perform necessary functions. 5. Reduced collection problems. The Top Five Reasons for Selling Through Distributors
  • Functions performed by independent wholesaler types
  • CHANNEL STRUCTURE & ORGANIZATION CHANNEL INTERMEDIARIES
    • Merchant Wholesalers
    • Full-Service Wholesalers
    • General Merchandise (Full-Line) Wholesalers
    • Specialty Merchandise (Limited-Line) Wholesalers
  • CHANNEL STRUCTURE & ORGANIZATION CHANNEL INTERMEDIARIES
    • Merchant Wholesalers
    • Limited-Service Wholesalers
    • Rack Jobbers
    • Cash and Carry Wholesalers
    • Drop Shippers/Desk Jobbers
    • Truck Jobbers
  • CHANNEL STRUCTURE & ORGANIZATION CHANNEL INTERMEDIARIES
    • Agents and Brokers
    • Manufacturer’s Agents
    • Selling Agents
    • Brokers
    • Manufacturers
    • Branch Offices
    • Sales Offices
  • Three types of vertical marketing systems: corporate, contractual (most popular), and administered
  • CHANNEL STRUCTURE & ORGANIZATION VERICAL MARKETING SYSTEMS
    • Vertical Marketing Systems
    • Forward Integration
    • Corporate Systems
    • Backward Integration
    • Wholesaler-Sponsored Voluntary Chains
    • Contractual Systems
    • Retailer-Sponsored Cooperatives
  • CHANNEL STRUCTURE & ORGANIZATION VERICAL MARKETING SYSTEMS
    • Contractual Systems
    • Franchising
    • Manufacturer-Sponsored Retail Franchise Systems
    • Manufacturer-Sponsored Wholesale Systems
    • Service-Sponsored Retail Franchise Systems
    • Service-Sponsored Franchise Systems
  • McDonalds and H&R Block What vertical marketing system does each use?
  • CHANNEL STRUCTURE & ORGANIZATION VERICAL MARKETING SYSTEMS
    • Administered Systems
    • Channel Partnership
  • CHANNEL CHOICE AND MANAGEMENT FACTORS AFFECTING CHANNEL CHOICE
    • Environmental Factors
    • Consumer Factors
    • Product Factors
    • Company Factors
  • CHANNEL CHOICE AND MANAGEMENT CHANNEL CHOICE CONSIDERATIONS
    • Target Market Coverage
    • Intensive Distribution
    • Exclusive Distribution
    • Selective Distribution
  • CHANNEL CHOICE AND MANAGEMENT CHANNEL CHOICE CONSIDERATIONS
    • Satisfying Buyer Requirements
    • Information
    • Convenience
    • Variety
    • Pre- or Post-Sale Service
  • Jiffy Lube and Petco What buyer requirements have been satisfied? 15-
  • GOING ONLINE Visit an Apple Store to See What All the Excitement is About
  • Apple Product Examples iPad iPhone MacBook Air iMac
  • CHANNEL CHOICE AND MANAGEMENT CHANNEL CHOICE CONSIDERATIONS
    • Profitability
    • Margins Earned
    • Channel Costs
    • Global Dimensions of Marketing Channels
  • USING MARKETING DASHBOARDS Channel Sales and Profit at Charlesburg Furniture
  • CHANNEL CHOICE AND MANAGEMENT CHANNEL RELATIONSHIPS
    • Sources of Channel Conflict
    • Vertical Conflict
    • Disintermediation
    • Horizontal Conflict
  • CHANNEL CHOICE AND MANAGEMENT CHANNEL RELATIONSHIPS
    • Channel Captain
    • Channel Influence
    • Economic
    • Expertise
    • Identification
    • Legitimate Right
  • CHANNEL CHOICE AND MANAGEMENT CHANNEL RELATIONSHIPS
    • Legal Considerations
    • Dual Distribution
    • Vertical Integration
    • Exclusive Dealing
    • Tying Arrangements
    • Refusal to Deal
    • Resale Restrictions
  • The Clayton Act and Sherman Act place legal restrictions on specific marketing channel strategies and practices