These slides describe the marketing channel system , value network and their key roles.

1. What is Marketing Channel System
andValue Network ?

2. Intermediaries between producers and final users constitute a
marketing channel or trade channel or distribution channel.

3. A marketing channel system is the particular set of marketing
channels a firm employs, and decisions about it are the most critical
ones management faces.

4. Marketing channels chief role is to
convert potential buyers into
profitable customers.

5. In managing its
intermediaries,
the firm uses the
combination of the
following types of
marketing :

6. Push strategy uses manufacturer’s sales force, trade promotion money to
induce intermediaries to carry, promote and sell product to end users.

7. In Pull strategy, manufacturer uses advertising, promotion etc. to persuade
consumers to demand product from intermediaries.

8. Top marketing companies like CocaCola and Nike skilfully
employ both push and pull strategies.

9. Philips, one of the world’s
b i g g e s t e l e c t r o n i c s
companies use multichannel
marketing to get access to
even the most remote
customers.
!
The company offers broad
range of products through :
Mass merchants
Retail chains
Speciality chain stores
Via web
Via online retailers
Small stores

10. Value network - a system of partnerships and alliances that a firm
creates to source , augment, and deliver its offerings.

11. Apple Developer’s connection
which has 50,000 members
keep 70% of any revenue their
products generate, and Apple
gets 30%.

12. Company can estimate whether more money is made
upstream or downstream, in case it can integrate forward
or backward.
Through Demand chain planning :
1
1

13. Company is more aware of the disturbances in the
supply chain that might change costs, prices or supplies.2

14. 3Companies can go online with their business partners to
speed communications, transactions, and payments;
reduce costs and increase accuracy.

15. Created by NILESH RANA of IIT BHU under the guidance of
Prof. SAMEER MATHUR , IIM LUCKNOW
www.iiminternship.com
Thank you !