Designing and Managing
Integrated
Marketing Channels
What is a Marketing Channel?
A marketing channel system is the
particular set of interdependent
organizations involved in ...
Channels and
Marketing Decisions
 A push strategy uses the manufacturer’s sales
force, trade promotion money, and other m...
Categories of Buyers
Habitual shoppers
High value deal seekers
Variety-loving shoppers
High-involvement shoppers
Types of Shoppers
 Service/quality customers
 Price/value customers
 Affinity customers
Channel Member
Functions
 Gather information
 Develop and disseminate persuasive
communications
 Reach agreements on pr...
Marketing Channel Flows
Too many middleman!
Figure 15.3
Consumer Marketing Channels
Figure 15.3
Industrial Marketing Channels
Designing a
Marketing Channel System
Analyze customer needs
Evaluate major channel alternatives
Identify major channel alt...
Channel Service Outputs
Lot size
Waiting/delivery time
Spatial convenience
Product variety
Service backup
Identifying Channel Alternatives
Types of
intermediaries
Number of
intermediaries
Terms and
responsibilities
Number of Intermediaries
Exclusive
Selective
Intensive
Terms and Responsibilities
of Channel Members
 Price policy
 Condition of sale
 Distributors’ territorial rights
 Mutu...
The Value-Adds vs. Costs of
Different Channels
Channel-Management Decisions
Selecting channel members
Training channel members
Motivating channel members
Evaluating chan...
Channel Power
 Coercive
 Reward
 Legitimate
 Expert
 Referent
What is Channel Conflict?
 Channel conflict occurs when one
member’s actions prevent another channel
from achieving its g...
Case Study – Titan Watches
 Sold through Seven different stores.
 World of Titan
 Time Zone
 Valuemart
 Sonata Stores...
Case study- HUL
 100 brands and 100 plants
 1, 000 products company distribute them
nationally through network of four
w...
Designing and Managing Integrated Marketing Channels
Designing and Managing Integrated Marketing Channels
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Designing and Managing Integrated Marketing Channels

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Channels and marketing Decisions, Functions, Channel Management Decisions, Channel Conflict, Designing and Managing Integrated Marketing Channels

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Transcript of "Designing and Managing Integrated Marketing Channels"

  1. 1. Designing and Managing Integrated Marketing Channels
  2. 2. What is a Marketing Channel? A marketing channel system is the particular set of interdependent organizations involved in the process of making a product or service available for use or consumption.
  3. 3. Channels and Marketing Decisions  A push strategy uses the manufacturer’s sales force, trade promotion money, and other means to induce intermediaries to carry, promote, and sell the product to end users.  A pull strategy uses advertising, promotion, and other forms of communication to persuade consumers to demand the product from intermediaries.
  4. 4. Categories of Buyers Habitual shoppers High value deal seekers Variety-loving shoppers High-involvement shoppers
  5. 5. Types of Shoppers  Service/quality customers  Price/value customers  Affinity customers
  6. 6. Channel Member Functions  Gather information  Develop and disseminate persuasive communications  Reach agreements on price and terms  Acquire funds to finance inventories  Assume risks  Provide space for storage  Provide support for buyers’ payment of their bills  Oversee actual transfer of ownership
  7. 7. Marketing Channel Flows
  8. 8. Too many middleman!
  9. 9. Figure 15.3 Consumer Marketing Channels
  10. 10. Figure 15.3 Industrial Marketing Channels
  11. 11. Designing a Marketing Channel System Analyze customer needs Evaluate major channel alternatives Identify major channel alternatives Establish channel objectives
  12. 12. Channel Service Outputs Lot size Waiting/delivery time Spatial convenience Product variety Service backup
  13. 13. Identifying Channel Alternatives Types of intermediaries Number of intermediaries Terms and responsibilities
  14. 14. Number of Intermediaries Exclusive Selective Intensive
  15. 15. Terms and Responsibilities of Channel Members  Price policy  Condition of sale  Distributors’ territorial rights  Mutual services and responsibilities
  16. 16. The Value-Adds vs. Costs of Different Channels
  17. 17. Channel-Management Decisions Selecting channel members Training channel members Motivating channel members Evaluating channel members Modifying channel members
  18. 18. Channel Power  Coercive  Reward  Legitimate  Expert  Referent
  19. 19. What is Channel Conflict?  Channel conflict occurs when one member’s actions prevent another channel from achieving its goal.  Types of channel conflict  Vertical  Horizontal  Multichannel
  20. 20. Case Study – Titan Watches  Sold through Seven different stores.  World of Titan  Time Zone  Valuemart  Sonata Stores  Titan Signet Club  Tanisqu boutiques
  21. 21. Case study- HUL  100 brands and 100 plants  1, 000 products company distribute them nationally through network of four warehouses, more than 40 agents, 75,00 wholesalers and a number of instutional customers  Project Shakti – 2001 – through SHGs
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