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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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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