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Presented by,
Nilanjan Paul
MARKETING CHANNEL SYSTEM
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.
VALUE NETWORK
A value network is a system of partnerships and alliances that a firm creates
to source, augment and deliver its offerings. A value network includes a firm’s
suppliers and its suppliers’
suppliers, its immediate customers and their end customers.
Marketing Channel and Value Network
PUSH STRATEGY
A push promotional strategy involves taking the product directly to the customer via
whatever means, ensuring the customer is aware of your brand at the point of
purchase.
"Taking the product to the customer“.
EXAMPLES: Direct selling to customers in showrooms or face to face.
PULL STRATEGY
A pull strategy involves motivating customers to seek out your brand in an active
process.
"Getting the customer to come to you“.
EXAMPLES: Advertising and mass media promotion, Word of mouth referrals.
Channel and Marketing Decisions
=> Ability to order a product online and pick it up at a convenient
retail location.
=> Ability to return an online-ordered product to a
nearby store.
=> Right to receive discounts based on total online and offline
purchases.
Buyer Expectations for Channel
Integration
Habitual shoppers
They purchase from the same places in the same manner over time.
(e.g.:- customers of BIG BAZAAR )
High value deal seekers
They know their needs and channel surf a great deal before buying at the
lowest possible price. (e.g.:- customers of SNAPDEAL,FLIPKART)
Variety-loving shoppers
They gather information in many channels, take advantage of high touch
services and then buy in their favorite channel regardless of price.
(e.g.:- customers of SHOPPERS STOP)
High-involvement shoppers
They gather information in all channels, make their purchase in the low cost
channels but take advantage of customer support from a high touch channel.
(e.g.:- buyers of local market)
Categories of Buyers
Service/quality customers
They care most about the variety and performance of products in
stores as well as the service provided.
(E.G:- buyers of i-Phone)
Price/value customers
They are price sensitive and are mostly concerned about spending
their money wisely.
(E.G:- buyers of Micromax)
Affinity customers
They primarily sort stores that suited people like themselves or the
members of groups they aspired to join.
(E.G:- customers aspiring test drive before buying vehicle)
Types of Shoppers
CHANNELS OF DISTRIBUTION
e.g.:- Dell
e.g.:- Big Bazaar
e.g:- ITC
e.g:- HUL
INDUSTRIAL MARKETING
CHANNEL
=> Analyze customer needs
=> Establish channel objectives
=> Identify major channel alternatives
=> Evaluate major channel alternatives
Designing A Marketing Channel
System
=> Selecting channel members
=> Training channel members
=> Motivating channel members
=> Evaluating channel members
=> Modifying channel members
Channel Management Decisions
i) Pure-click companies
ii)Brick and Click companies
iii) M-Commerce
i)PURE CLICK COMPANIES:-
Pure click companies are companies, which have their business
segments only in online markets.
the most prominent companies are eBay and amazon. these
companies have only an online model and no offline model.
eBay does not sell products offline and neither does amazon.
ii)BRICK AND CLICK COMPANIES:-
A brick and click is a store that allows you to either shop at their
physical location, or on their online store. Ex: Wal-Mart
iii) M-COMMERCE:
The use of wireless handheld devices such as cellular
phones and laptops to conduct commercial
transactions online. Mobile commerce transactions
continues to grow, and the term includes the purchase
and sale of a wide range of goods and services, online
banking, bill payment, information delivery and so on.
Also known as m-commerce.
Designing and Managing Value Networks and Channel

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Designing and Managing Value Networks and Channel

  • 2. MARKETING CHANNEL SYSTEM 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. VALUE NETWORK A value network is a system of partnerships and alliances that a firm creates to source, augment and deliver its offerings. A value network includes a firm’s suppliers and its suppliers’ suppliers, its immediate customers and their end customers. Marketing Channel and Value Network
  • 3. PUSH STRATEGY A push promotional strategy involves taking the product directly to the customer via whatever means, ensuring the customer is aware of your brand at the point of purchase. "Taking the product to the customer“. EXAMPLES: Direct selling to customers in showrooms or face to face. PULL STRATEGY A pull strategy involves motivating customers to seek out your brand in an active process. "Getting the customer to come to you“. EXAMPLES: Advertising and mass media promotion, Word of mouth referrals. Channel and Marketing Decisions
  • 4. => Ability to order a product online and pick it up at a convenient retail location. => Ability to return an online-ordered product to a nearby store. => Right to receive discounts based on total online and offline purchases. Buyer Expectations for Channel Integration
  • 5. Habitual shoppers They purchase from the same places in the same manner over time. (e.g.:- customers of BIG BAZAAR ) High value deal seekers They know their needs and channel surf a great deal before buying at the lowest possible price. (e.g.:- customers of SNAPDEAL,FLIPKART) Variety-loving shoppers They gather information in many channels, take advantage of high touch services and then buy in their favorite channel regardless of price. (e.g.:- customers of SHOPPERS STOP) High-involvement shoppers They gather information in all channels, make their purchase in the low cost channels but take advantage of customer support from a high touch channel. (e.g.:- buyers of local market) Categories of Buyers
  • 6. Service/quality customers They care most about the variety and performance of products in stores as well as the service provided. (E.G:- buyers of i-Phone) Price/value customers They are price sensitive and are mostly concerned about spending their money wisely. (E.G:- buyers of Micromax) Affinity customers They primarily sort stores that suited people like themselves or the members of groups they aspired to join. (E.G:- customers aspiring test drive before buying vehicle) Types of Shoppers
  • 7. CHANNELS OF DISTRIBUTION e.g.:- Dell e.g.:- Big Bazaar e.g:- ITC e.g:- HUL
  • 9. => Analyze customer needs => Establish channel objectives => Identify major channel alternatives => Evaluate major channel alternatives Designing A Marketing Channel System
  • 10. => Selecting channel members => Training channel members => Motivating channel members => Evaluating channel members => Modifying channel members Channel Management Decisions
  • 11. i) Pure-click companies ii)Brick and Click companies iii) M-Commerce
  • 12. i)PURE CLICK COMPANIES:- Pure click companies are companies, which have their business segments only in online markets. the most prominent companies are eBay and amazon. these companies have only an online model and no offline model. eBay does not sell products offline and neither does amazon. ii)BRICK AND CLICK COMPANIES:- A brick and click is a store that allows you to either shop at their physical location, or on their online store. Ex: Wal-Mart
  • 13. iii) M-COMMERCE: The use of wireless handheld devices such as cellular phones and laptops to conduct commercial transactions online. Mobile commerce transactions continues to grow, and the term includes the purchase and sale of a wide range of goods and services, online banking, bill payment, information delivery and so on. Also known as m-commerce.