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Chap009 business marketing channels partnerships for customer service

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Chap009 business marketing channels partnerships for customer service

  1. 1. McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved.
  2. 2. Chapter 9Business Marketing Channels: Partnerships for Customer Service
  3. 3. KEY OBJECTIVES OF MARKETING CHANNELS• DELIVER THE NEEDED GOOD/SERVICE• PLACE THE GOOD/SERVICE WHERE IT IS WANTED• HAVE THE GOOD/SERVICE WHEN IT IS WANTED 9-3
  4. 4. MARKETING CHANNEL DIFFICULTIES• CHANNELS ARE EXPENSIVE TO ESTABLISH• CHANNELS ARE COSTLY TO COORDINATE• CHANNELS ARE SLOW TO ADAPT TO ENVIRONMENTAL CHANGES 9-4
  5. 5. WHAT DISTRIBUTORS DOCONTRIBUTION CONTRIBUTIONTO MANUFACTURERS TO CUSTOMERSMARKET COVERAGE PRODUCT AVAILABILITYSALES CONTACTS PRODUCT ASSORTMENTINVENTORY AVAILABILITY FITTING ORDER QUANTITYORDER PROCESSING CREDITMARKET INTELLIGENCE SERVICECUSTOMER SUPPORT TECHNICAL SUPPORT 9-5
  6. 6. A MODEL FOR CHANNEL DESIGNIdentify and Identify and forecast forecast Create Createuser service user service a vision of a vision of needs needs the ideal the ideal channel channel Evaluate Evaluate Gap Gap current channels current channels Analysis Analysis and other Implement Implement and other options the best option the best option options and manage and manage the system the system Exhibit 9-5 9-6
  7. 7. SOURCES OF CONFLICT IN MARKETING CHANNELS• GOAL CONFLICT: SALES GROWTH VS. PROFITS• MEANS CONFLICT: HOW THINGS GET DONE AND WHO DOES WHAT & WHEN IS IT DONE• CONFLICTING VIEWPOINTS: OUR VIEWPOINT VS. YOUR VIEWPOINT 9-7
  8. 8. HOW CHANNEL MEMBERS CAN RESPOND TO CONFLICT• EXIT—Can leave the relationship• VOICE—Can find a means to articulate dissatisfaction• LOYALTY—Can continue to persevere in face of conflict• AGGRESSION—Can openly or covertly take actions to injure the conflict party• NEGLECT—Can leave the conflict untreated and fade away 9-8
  9. 9. OPTIONS FOR RESOLVING CONFLICT1. PRIVATE REFEREES—Panel of channel members serve as a forum2. THIRD PARTY SOLUTIONS—Mediated resolution3. EMPATHIC MECHANISMS • Use of a specialist • Join Partner’s Industry Association • Exchange personnel 9-9
  10. 10. SOURCES OF CHANNEL POWER1. REWARD POWER — Ability to provide days off for specific outcome/behavior2. COERCIVE POWER — Ability to punish for failure to perform3. INFORMATION POWER — Ability to obtain information others do not have4. EXPERT POWER — Ability to gain an advantage by what you know5. REFERENT POWER — Ability to influence by serving as the model of best practices6. LEGITIMATE POWER — Explicit authority granted by tradition or contract 9-10
  11. 11. RELATIONSHIP FORMS IN CHANNELS• TRANSACTIONAL CHANNELS - Members trade at arms length• ADMINISTERED CHANNELS - Interactions without formal chain of command or a set of rules• CONTRACTUAL CHANNELS – Tightly coordinated by formal procedures andpledges of on-going exchange• CORPORATE CHANNELS – High degree of vertical integration in the sales and distribution functions 9-11

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