SlideShare a Scribd company logo
Part 2 Developing the Marketing Channel
Chapter 5 ,[object Object]
Marketing Channel Strategy   5 Objective 1: The broad principles by which the firm expects to achieve its distribution objectives for its  target market(s) C hannel  S trategy:
Distribution Decisions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],5 Objective 2:
Channel Strategy as Overall  Corporate Objective 5 Objective 3: The higher the priority given to  distribution, the higher the level at which it should be considered in formulating the organization’s  overall objectives and strategies
The Value Chain 5 Firm infrastructure Human resource management Technology development Human resource management Inbound   Operations   Outbound  Marketing  Service logistics   logistics & sales Margin Margin Support Activities Primary Activities
Determining the Priority Given  to Distribution 5 Distribution  does  increasingly warrant the attention of top management, because competition has made the issue of distribution too important for top management to ignore. •  Rayovac Corp. •  WD-40 •  Coca-Cola •  Procter & Gamble Company
Channel Strategy & the Marketing Mix 5 Objective 4: The essence of modern marketing management: To develop a marketing  mix of product, price, promotion, & distribution (place)
Emphasis on Distribution Strategy ,[object Object],[object Object],[object Object],[object Object],5 Objective 5: IF: THEN: or or or The firm should choose distribution  strategy for strategic emphasis
Target Market Demand 5 Firms should stress distribution when it serves customers’ needs in the target market. Marketing channels are so closely linked to customer need satisfaction because it is through distribution that firms can provide the kinds and levels of service that make for satisfied customers.
Competitive Parity 5 Distribution advantages are not easily copied by competitors.  Distribution advantages are based on a combination of superior strategy, organization, and human capabilities.
Distribution Neglect 5 Competitors’ neglect of distribution strategies provides excellent opportunities.  The channel manager must analyze target markets to determine whether competitors have neglected distribution and whether vulnerabilities exist that can be exploited.
Distribution and Synergy   5 “ Hooking up” with a mix of cooperative channel members will strengthen the channel.  Because each channel member is an independent entity, rewarding opportunities exist for channel managers to cultivate cooperation among members.
Differential Advantage  & Channel Design 5 Objective 6: Differential advantage,  also called  sustainable competitive advantage,  occurs when a firm  attains a long-term, advantageous position  in the market relative to competitors. •  Caterpillar
Positioning the Channel 5 A firm that plans the channel and makes decisions by viewing the relationship with channel members as a  partnership or  strategic alliance  that offers recognizable benefits to the  manufacturer & channel members on a  long-term basis •  Infiniti
Selection of Channel Members ,[object Object],[object Object],[object Object],5 Objective 7: Because customers perceive channel members as an extension of the manufacturer’s own organization, members should:
Channel Strategy & Managing the Channel 5 Objective 8: 3 Strategic Questions How close a relationship  should be developed with the channel members? How should the channel members be motivated to cooperate in achieving the manufacturer’s  distribution objectives? How should the  marketing mix be used to enhance channel member cooperation?
Closeness of Channel Relationships ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],5 Factors to consider
Marketing Mix in Channel Management 5 Marketing Mix Product  strategy Pricing  strategy Promotion strategy Distribution strategy
Motivation of Channel Members 5 Objective 9: Portfolio concept: A tool for motivating different types and sizes of channel members participating in various channel structures who may respond differently to various motivation strategies.
Evaluation of Channel Member Performance 5 Objective 10: Have provisions been made in the design and management of the channel to assure that  channel member performance will be  evaluated effectively? Channel manager’s  involvement in evaluating member performance is integral to  developing & managing channel

More Related Content

Similar to Ch05

ch05.ppt Strategies in marketing channel
ch05.ppt Strategies in marketing channelch05.ppt Strategies in marketing channel
ch05.ppt Strategies in marketing channel
ahmedjaura1
 
Strategy in MKT Channel Chapter 5ppt MKT
Strategy in MKT Channel  Chapter 5ppt MKTStrategy in MKT Channel  Chapter 5ppt MKT
Strategy in MKT Channel Chapter 5ppt MKT
ahmedjaura1
 
Unit VI Developing Marketing Channel.pptx
Unit VI Developing Marketing Channel.pptxUnit VI Developing Marketing Channel.pptx
Unit VI Developing Marketing Channel.pptx
RohitPawar477072
 
Channel Management
Channel ManagementChannel Management
Channel Management
dcsastudent
 
Why the growing importance of marketing channels
Why the growing importance of marketing channelsWhy the growing importance of marketing channels
Why the growing importance of marketing channels
ahmedjaura1
 
Kotler12 basic
Kotler12 basicKotler12 basic
Kotler12 basic
school
 
DS MRKT 339
DS MRKT 339DS MRKT 339
DS MRKT 339
Jon E
 
Supply chain management
Supply chain managementSupply chain management
Supply chain management
Alan Jeffrey
 
The Channel Program Blueprint
The Channel Program BlueprintThe Channel Program Blueprint
The Channel Program Blueprint
Seth Jacobsen
 
Marketing strats chap 2 .ppt
Marketing strats chap 2 .pptMarketing strats chap 2 .ppt
Marketing strats chap 2 .ppt
Malik911098
 
Developing marketing strategies and a marketing plan
Developing marketing strategies and a marketing planDeveloping marketing strategies and a marketing plan
Developing marketing strategies and a marketing plan
Mohammed_Alzubaidi
 
How does distribution add value
How does distribution add valueHow does distribution add value
How does distribution add value
Muzamil Quadir
 
Chapter 2 Developing Marketing Strategies and Plans
Chapter 2 Developing Marketing Strategies and PlansChapter 2 Developing Marketing Strategies and Plans
Chapter 2 Developing Marketing Strategies and Plans
Nishant Agrawal
 
Plan de mk
Plan de mkPlan de mk
Channel Management
Channel ManagementChannel Management
Channel Management
IIR Middle East
 
Ii mm.02.10
Ii mm.02.10Ii mm.02.10
Ii mm.02.10
Yusuf Abdullah
 
Lec 02 Company and Marketing Strategy.pptx
Lec 02 Company and Marketing Strategy.pptxLec 02 Company and Marketing Strategy.pptx
Lec 02 Company and Marketing Strategy.pptx
muhammadzahid526811
 
Channel Marketing @ channel enablers
Channel Marketing @ channel enablersChannel Marketing @ channel enablers
Channel Marketing @ channel enablers
lokeshgupta80
 
Channelconcept
ChannelconceptChannelconcept
Channelconcept
EMannyMendoza
 
SM htmch08thirded.pdf
SM htmch08thirded.pdfSM htmch08thirded.pdf
SM htmch08thirded.pdf
Djula1
 

Similar to Ch05 (20)

ch05.ppt Strategies in marketing channel
ch05.ppt Strategies in marketing channelch05.ppt Strategies in marketing channel
ch05.ppt Strategies in marketing channel
 
Strategy in MKT Channel Chapter 5ppt MKT
Strategy in MKT Channel  Chapter 5ppt MKTStrategy in MKT Channel  Chapter 5ppt MKT
Strategy in MKT Channel Chapter 5ppt MKT
 
Unit VI Developing Marketing Channel.pptx
Unit VI Developing Marketing Channel.pptxUnit VI Developing Marketing Channel.pptx
Unit VI Developing Marketing Channel.pptx
 
Channel Management
Channel ManagementChannel Management
Channel Management
 
Why the growing importance of marketing channels
Why the growing importance of marketing channelsWhy the growing importance of marketing channels
Why the growing importance of marketing channels
 
Kotler12 basic
Kotler12 basicKotler12 basic
Kotler12 basic
 
DS MRKT 339
DS MRKT 339DS MRKT 339
DS MRKT 339
 
Supply chain management
Supply chain managementSupply chain management
Supply chain management
 
The Channel Program Blueprint
The Channel Program BlueprintThe Channel Program Blueprint
The Channel Program Blueprint
 
Marketing strats chap 2 .ppt
Marketing strats chap 2 .pptMarketing strats chap 2 .ppt
Marketing strats chap 2 .ppt
 
Developing marketing strategies and a marketing plan
Developing marketing strategies and a marketing planDeveloping marketing strategies and a marketing plan
Developing marketing strategies and a marketing plan
 
How does distribution add value
How does distribution add valueHow does distribution add value
How does distribution add value
 
Chapter 2 Developing Marketing Strategies and Plans
Chapter 2 Developing Marketing Strategies and PlansChapter 2 Developing Marketing Strategies and Plans
Chapter 2 Developing Marketing Strategies and Plans
 
Plan de mk
Plan de mkPlan de mk
Plan de mk
 
Channel Management
Channel ManagementChannel Management
Channel Management
 
Ii mm.02.10
Ii mm.02.10Ii mm.02.10
Ii mm.02.10
 
Lec 02 Company and Marketing Strategy.pptx
Lec 02 Company and Marketing Strategy.pptxLec 02 Company and Marketing Strategy.pptx
Lec 02 Company and Marketing Strategy.pptx
 
Channel Marketing @ channel enablers
Channel Marketing @ channel enablersChannel Marketing @ channel enablers
Channel Marketing @ channel enablers
 
Channelconcept
ChannelconceptChannelconcept
Channelconcept
 
SM htmch08thirded.pdf
SM htmch08thirded.pdfSM htmch08thirded.pdf
SM htmch08thirded.pdf
 

Recently uploaded

What do the symbols on vehicle dashboard mean?
What do the symbols on vehicle dashboard mean?What do the symbols on vehicle dashboard mean?
What do the symbols on vehicle dashboard mean?
Hyundai Motor Group
 
What Could Be Behind Your Mercedes Sprinter's Power Loss on Uphill Roads
What Could Be Behind Your Mercedes Sprinter's Power Loss on Uphill RoadsWhat Could Be Behind Your Mercedes Sprinter's Power Loss on Uphill Roads
What Could Be Behind Your Mercedes Sprinter's Power Loss on Uphill Roads
Sprinter Gurus
 
Kaizen SMT_MI_PCBA for Quality Engineerspptx
Kaizen SMT_MI_PCBA for Quality EngineerspptxKaizen SMT_MI_PCBA for Quality Engineerspptx
Kaizen SMT_MI_PCBA for Quality Engineerspptx
vaibhavsrivastava482521
 
Expanding Access to Affordable At-Home EV Charging by Vanessa Warheit
Expanding Access to Affordable At-Home EV Charging by Vanessa WarheitExpanding Access to Affordable At-Home EV Charging by Vanessa Warheit
Expanding Access to Affordable At-Home EV Charging by Vanessa Warheit
Forth
 
EV Charging at Multifamily Properties by Kevin Donnelly
EV Charging at Multifamily Properties by Kevin DonnellyEV Charging at Multifamily Properties by Kevin Donnelly
EV Charging at Multifamily Properties by Kevin Donnelly
Forth
 
AadiShakti Projects ( Asp Cranes ) Raipur
AadiShakti Projects ( Asp Cranes ) RaipurAadiShakti Projects ( Asp Cranes ) Raipur
AadiShakti Projects ( Asp Cranes ) Raipur
AadiShakti Projects
 
原版制作(Exeter毕业证书)埃克塞特大学毕业证完成信一模一样
原版制作(Exeter毕业证书)埃克塞特大学毕业证完成信一模一样原版制作(Exeter毕业证书)埃克塞特大学毕业证完成信一模一样
原版制作(Exeter毕业证书)埃克塞特大学毕业证完成信一模一样
78tq3hi2
 
EV Charging at MFH Properties by Whitaker Jamieson
EV Charging at MFH Properties by Whitaker JamiesonEV Charging at MFH Properties by Whitaker Jamieson
EV Charging at MFH Properties by Whitaker Jamieson
Forth
 
Here's Why Every Semi-Truck Should Have ELDs
Here's Why Every Semi-Truck Should Have ELDsHere's Why Every Semi-Truck Should Have ELDs
Here's Why Every Semi-Truck Should Have ELDs
jennifermiller8137
 
Hand Gesture Control Robotic Arm using image processing.pptx
Hand Gesture Control Robotic Arm using image processing.pptxHand Gesture Control Robotic Arm using image processing.pptx
Hand Gesture Control Robotic Arm using image processing.pptx
wstatus456
 
53286592-Global-Entrepreneurship-and-the-Successful-Growth-Strategies-of-Earl...
53286592-Global-Entrepreneurship-and-the-Successful-Growth-Strategies-of-Earl...53286592-Global-Entrepreneurship-and-the-Successful-Growth-Strategies-of-Earl...
53286592-Global-Entrepreneurship-and-the-Successful-Growth-Strategies-of-Earl...
MarynaYurchenko2
 
Globalfleet - global fleet survey 2021 full results
Globalfleet - global fleet survey 2021 full resultsGlobalfleet - global fleet survey 2021 full results
Globalfleet - global fleet survey 2021 full results
vaterland
 
快速办理(napier毕业证书)英国龙比亚大学毕业证在读证明一模一样
快速办理(napier毕业证书)英国龙比亚大学毕业证在读证明一模一样快速办理(napier毕业证书)英国龙比亚大学毕业证在读证明一模一样
快速办理(napier毕业证书)英国龙比亚大学毕业证在读证明一模一样
78tq3hi2
 
Catalytic Converter theft prevention - NYC.pptx
Catalytic Converter theft prevention - NYC.pptxCatalytic Converter theft prevention - NYC.pptx
Catalytic Converter theft prevention - NYC.pptx
Blue Star Brothers
 
一比一原版(WashU文凭证书)圣路易斯华盛顿大学毕业证如何办理
一比一原版(WashU文凭证书)圣路易斯华盛顿大学毕业证如何办理一比一原版(WashU文凭证书)圣路易斯华盛顿大学毕业证如何办理
一比一原版(WashU文凭证书)圣路易斯华盛顿大学毕业证如何办理
afkxen
 
EN Artificial Intelligence by Slidesgo.pptx
EN Artificial Intelligence by Slidesgo.pptxEN Artificial Intelligence by Slidesgo.pptx
EN Artificial Intelligence by Slidesgo.pptx
aichamardi99
 
一比一原版(Columbia文凭证书)哥伦比亚大学毕业证如何办理
一比一原版(Columbia文凭证书)哥伦比亚大学毕业证如何办理一比一原版(Columbia文凭证书)哥伦比亚大学毕业证如何办理
一比一原版(Columbia文凭证书)哥伦比亚大学毕业证如何办理
afkxen
 

Recently uploaded (17)

What do the symbols on vehicle dashboard mean?
What do the symbols on vehicle dashboard mean?What do the symbols on vehicle dashboard mean?
What do the symbols on vehicle dashboard mean?
 
What Could Be Behind Your Mercedes Sprinter's Power Loss on Uphill Roads
What Could Be Behind Your Mercedes Sprinter's Power Loss on Uphill RoadsWhat Could Be Behind Your Mercedes Sprinter's Power Loss on Uphill Roads
What Could Be Behind Your Mercedes Sprinter's Power Loss on Uphill Roads
 
Kaizen SMT_MI_PCBA for Quality Engineerspptx
Kaizen SMT_MI_PCBA for Quality EngineerspptxKaizen SMT_MI_PCBA for Quality Engineerspptx
Kaizen SMT_MI_PCBA for Quality Engineerspptx
 
Expanding Access to Affordable At-Home EV Charging by Vanessa Warheit
Expanding Access to Affordable At-Home EV Charging by Vanessa WarheitExpanding Access to Affordable At-Home EV Charging by Vanessa Warheit
Expanding Access to Affordable At-Home EV Charging by Vanessa Warheit
 
EV Charging at Multifamily Properties by Kevin Donnelly
EV Charging at Multifamily Properties by Kevin DonnellyEV Charging at Multifamily Properties by Kevin Donnelly
EV Charging at Multifamily Properties by Kevin Donnelly
 
AadiShakti Projects ( Asp Cranes ) Raipur
AadiShakti Projects ( Asp Cranes ) RaipurAadiShakti Projects ( Asp Cranes ) Raipur
AadiShakti Projects ( Asp Cranes ) Raipur
 
原版制作(Exeter毕业证书)埃克塞特大学毕业证完成信一模一样
原版制作(Exeter毕业证书)埃克塞特大学毕业证完成信一模一样原版制作(Exeter毕业证书)埃克塞特大学毕业证完成信一模一样
原版制作(Exeter毕业证书)埃克塞特大学毕业证完成信一模一样
 
EV Charging at MFH Properties by Whitaker Jamieson
EV Charging at MFH Properties by Whitaker JamiesonEV Charging at MFH Properties by Whitaker Jamieson
EV Charging at MFH Properties by Whitaker Jamieson
 
Here's Why Every Semi-Truck Should Have ELDs
Here's Why Every Semi-Truck Should Have ELDsHere's Why Every Semi-Truck Should Have ELDs
Here's Why Every Semi-Truck Should Have ELDs
 
Hand Gesture Control Robotic Arm using image processing.pptx
Hand Gesture Control Robotic Arm using image processing.pptxHand Gesture Control Robotic Arm using image processing.pptx
Hand Gesture Control Robotic Arm using image processing.pptx
 
53286592-Global-Entrepreneurship-and-the-Successful-Growth-Strategies-of-Earl...
53286592-Global-Entrepreneurship-and-the-Successful-Growth-Strategies-of-Earl...53286592-Global-Entrepreneurship-and-the-Successful-Growth-Strategies-of-Earl...
53286592-Global-Entrepreneurship-and-the-Successful-Growth-Strategies-of-Earl...
 
Globalfleet - global fleet survey 2021 full results
Globalfleet - global fleet survey 2021 full resultsGlobalfleet - global fleet survey 2021 full results
Globalfleet - global fleet survey 2021 full results
 
快速办理(napier毕业证书)英国龙比亚大学毕业证在读证明一模一样
快速办理(napier毕业证书)英国龙比亚大学毕业证在读证明一模一样快速办理(napier毕业证书)英国龙比亚大学毕业证在读证明一模一样
快速办理(napier毕业证书)英国龙比亚大学毕业证在读证明一模一样
 
Catalytic Converter theft prevention - NYC.pptx
Catalytic Converter theft prevention - NYC.pptxCatalytic Converter theft prevention - NYC.pptx
Catalytic Converter theft prevention - NYC.pptx
 
一比一原版(WashU文凭证书)圣路易斯华盛顿大学毕业证如何办理
一比一原版(WashU文凭证书)圣路易斯华盛顿大学毕业证如何办理一比一原版(WashU文凭证书)圣路易斯华盛顿大学毕业证如何办理
一比一原版(WashU文凭证书)圣路易斯华盛顿大学毕业证如何办理
 
EN Artificial Intelligence by Slidesgo.pptx
EN Artificial Intelligence by Slidesgo.pptxEN Artificial Intelligence by Slidesgo.pptx
EN Artificial Intelligence by Slidesgo.pptx
 
一比一原版(Columbia文凭证书)哥伦比亚大学毕业证如何办理
一比一原版(Columbia文凭证书)哥伦比亚大学毕业证如何办理一比一原版(Columbia文凭证书)哥伦比亚大学毕业证如何办理
一比一原版(Columbia文凭证书)哥伦比亚大学毕业证如何办理
 

Ch05

  • 1. Part 2 Developing the Marketing Channel
  • 2.
  • 3. Marketing Channel Strategy 5 Objective 1: The broad principles by which the firm expects to achieve its distribution objectives for its target market(s) C hannel S trategy:
  • 4.
  • 5. Channel Strategy as Overall Corporate Objective 5 Objective 3: The higher the priority given to distribution, the higher the level at which it should be considered in formulating the organization’s overall objectives and strategies
  • 6. The Value Chain 5 Firm infrastructure Human resource management Technology development Human resource management Inbound Operations Outbound Marketing Service logistics logistics & sales Margin Margin Support Activities Primary Activities
  • 7. Determining the Priority Given to Distribution 5 Distribution does increasingly warrant the attention of top management, because competition has made the issue of distribution too important for top management to ignore. • Rayovac Corp. • WD-40 • Coca-Cola • Procter & Gamble Company
  • 8. Channel Strategy & the Marketing Mix 5 Objective 4: The essence of modern marketing management: To develop a marketing mix of product, price, promotion, & distribution (place)
  • 9.
  • 10. Target Market Demand 5 Firms should stress distribution when it serves customers’ needs in the target market. Marketing channels are so closely linked to customer need satisfaction because it is through distribution that firms can provide the kinds and levels of service that make for satisfied customers.
  • 11. Competitive Parity 5 Distribution advantages are not easily copied by competitors. Distribution advantages are based on a combination of superior strategy, organization, and human capabilities.
  • 12. Distribution Neglect 5 Competitors’ neglect of distribution strategies provides excellent opportunities. The channel manager must analyze target markets to determine whether competitors have neglected distribution and whether vulnerabilities exist that can be exploited.
  • 13. Distribution and Synergy 5 “ Hooking up” with a mix of cooperative channel members will strengthen the channel. Because each channel member is an independent entity, rewarding opportunities exist for channel managers to cultivate cooperation among members.
  • 14. Differential Advantage & Channel Design 5 Objective 6: Differential advantage, also called sustainable competitive advantage, occurs when a firm attains a long-term, advantageous position in the market relative to competitors. • Caterpillar
  • 15. Positioning the Channel 5 A firm that plans the channel and makes decisions by viewing the relationship with channel members as a partnership or strategic alliance that offers recognizable benefits to the manufacturer & channel members on a long-term basis • Infiniti
  • 16.
  • 17. Channel Strategy & Managing the Channel 5 Objective 8: 3 Strategic Questions How close a relationship should be developed with the channel members? How should the channel members be motivated to cooperate in achieving the manufacturer’s distribution objectives? How should the marketing mix be used to enhance channel member cooperation?
  • 18.
  • 19. Marketing Mix in Channel Management 5 Marketing Mix Product strategy Pricing strategy Promotion strategy Distribution strategy
  • 20. Motivation of Channel Members 5 Objective 9: Portfolio concept: A tool for motivating different types and sizes of channel members participating in various channel structures who may respond differently to various motivation strategies.
  • 21. Evaluation of Channel Member Performance 5 Objective 10: Have provisions been made in the design and management of the channel to assure that channel member performance will be evaluated effectively? Channel manager’s involvement in evaluating member performance is integral to developing & managing channel