Marketing Channels

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Marketing Channels

  1. 1. Think Efficiency and Effectiveness<br />
  2. 2. Add a Distributor<br />
  3. 3. Marketing Channel Defined<br />A set of interdependent organizations involved in the process of making a product or service available for use or consumption.<br />
  4. 4. III. Intermediaries<br />A. Types<br />Retailer<br />Wholesaler<br />Agent<br />B. Value Created by Intermediaries<br />Improve exchange efficiency<br />Perform marketing functions<br />Eliminate assortment / quantity discrepancies<br />
  5. 5. Types of Intermediaries<br />
  6. 6. How intermediaries improve exchange efficiencies<br />
  7. 7. Channel Structure Decisions<br />
  8. 8. Examples of direct and indirect channels<br />Slide 15-15<br />
  9. 9.
  10. 10. Gatekeeper<br />Important asset of marketing strategy<br />Differentiator<br />Difficult to replicate<br />End-user satisfaction<br />Overall brand image<br />Awareness of channel importance is low<br />Opportunity for competitive advantage<br />Difficult to create and maintain channel <br />Difficult and costly to change<br />Right the first time<br />Importance of Studying Marketing Channels<br />
  11. 11. Channel Members<br />Manufacturers<br />Intermediaries<br />Retailers<br />Wholesalers<br />End-users<br />
  12. 12. Channel Analysis Framework<br />CHANNEL DESIGN<br />Segmentation<br />Channel Structure<br />Splitting the Workload<br />Degree of Commitment<br />Gap Analysis<br />CHANNEL IMPLEMENTATION<br />Channel Power Channel Conflict<br />Manage/Defuse Conflict<br />Channel Coordination<br />
  13. 13. Segmentation<br />Splitting market into groups of end-user<br />
  14. 14. Segmentation<br />Example: Segments of book end-users<br />Recreational readers<br />University students<br />Convenience-oriented<br />Price-oriented<br />
  15. 15. Selecting Target Segments<br />Those we can serve most profitably<br />Restrictions<br />Managerial bounds<br />Environmental bounds<br />Legal<br />Competitive benchmarks<br />
  16. 16. Channel Structure<br />Types of channel members<br />Identities of specific channel members<br />Channel intensity: number of each type<br />
  17. 17. Gap Analysis<br />The difference between optimal and actual channels<br />Demand side gaps<br />Service output demands are not being met<br />Undersupplied<br />Oversupplied<br />Supply side gaps<br />At least one flow is costing too much<br />Lack of expertise<br />Waste<br />
  18. 18. Channel Power<br />Ability to control other channel members<br />Necessary to implement channel design<br />May be used to optimize channel to benefit of all channel members<br />
  19. 19. Channel Conflict<br />Actions of channel members prevent channel from achieving its goals<br />Goal conflict<br />Domain conflict<br />Perceptual conflict<br />
  20. 20. Manage/Diffuse Conflict<br />Identify sources of conflict<br />Poor channel design<br />Poor performance<br />Take action<br />Exercise channel power<br />
  21. 21. Channel Coordination<br />Result of<br />Channel designed to meet service output demands of target end-user segments<br />Ongoing process<br />
  22. 22. Insights for Specific Channel Institutions<br />Retailers<br />Wholesalers<br />Logistics firms<br />Supply chain issues<br />Franchises<br />

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