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CH 15 Designing and Managing Value Networks and Channels

CH 15 Designing and Managing Value Networks and Channels. Kotler Koshy Keller Jha. Marketing Channels. Sets of interdependent organizations involved in the process of making a product or service available for use or consumption. Channels and Marketing Decisions. Push

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CH 15 Designing and Managing Value Networks and Channels

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  1. CH 15 Designing and Managing Value Networks and Channels Kotler Koshy Keller Jha

  2. Marketing Channels Sets of interdependent organizations involved in the process of making a product or service available for use or consumption.

  3. Channels and Marketing Decisions Push Strategy Pull Strategy

  4. Categories of Buyers • Habitual shoppers • High value deal seekers • Variety-loving shoppers • High-involvement shoppers

  5. Buyer Expectations for Channel Integration • 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

  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 for storage • Provide for buyers’ payment of their bills • Oversee actual transfer of ownership

  7. Designing a Marketing Channel System • Analyze customer needs • Establish channel objectives • Identify major channel alternatives • Evaluate major channel alternatives

  8. Identifying Channel Alternatives • Types of intermediaries • Number of intermediaries • Terms and responsibilities

  9. Channel-Management Decisions • Selecting channel members • Training channel members • Motivating channel members • Evaluating channel members • Modifying channel members

  10. Channel Integration and Systems • Vertical marketing systems:one of the channel members may own the others, influence the others due to better bargaining power, or develop a contractual arrangement with the different channel members • Corporate VMS: one of the channel members exerts complete control over the rest of the channel partners and everyone follows the objectives and procedures as dictated by this dominant channel member. • Administered VMS: is similar to a conventional distribution system except that there are greater inter-organizational relationships and sharing of an overall objective • Contractual VMS: consists of independent firms operating at different channel levels and forming a system on a contractual basis • Horizontal marketing systems: Joining of two or more corporations on the same level for the purposes of pursuing a new marketing opportunity • Multichannel systems: a system in which a producer uses more that one channel of distribution, commonly, producers who use multichannel marketing systems operate their own retail stores as well as sell through other wholesalers and retailers

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