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MARKETING MANAGEMENT 12 th edition

MARKETING MANAGEMENT 12 th edition. 15 Designing and Managing Value Networks and Channels. Kotler Keller. Chapter Questions. What is a marketing channel system and value network? What work do marketing channels perform? How should channels be designed?

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MARKETING MANAGEMENT 12 th edition

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  1. MARKETING MANAGEMENT12th edition 15 Designing and Managing Value Networks and Channels Kotler Keller

  2. Chapter Questions • What is a marketing channel system and value network? • What work do marketing channels perform? • How should channels be designed? • What decisions do companies face in managing their channels? • How should companies integrate channels and manage channel conflict? • What is the future for e-commerce?

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

  4. Channels and Marketing Decisions Push Strategy Pull Strategy

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

  6. 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

  7. Should the 4 P’s be replaced? • Solutions • Information • Value • Access

  8. Figure 15.1 Increasing Efficiency

  9. 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

  10. Figure 15.2 Marketing Channel Flows

  11. Figure 15.3 Consumer Marketing Channels

  12. Figure 15.3 Industrial Marketing Channels

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

  14. Channel Service Outputs Lot size Waiting/delivery time Spatial convenience Product variety Service backup

  15. Identifying Channel Alternatives Types of intermediaries Number of intermediaries Terms and responsibilities

  16. Number of Intermediaries Exclusive Selective Intensive

  17. Figure 15.4 The Value-Adds Versus Costs of Different Channels

  18. Figure 15.5 Break-Even Chart for the Choice Between A Company Sales Force and Manufacturer’s Sales Agency

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

  20. Channel Power • Coercive • Reward • Legitimate • Expert • Referent

  21. Channel Integration and Systems • Vertical marketing systems • Corporate VMS • Administered VMS • Contractual VMS • Horizontal marketing systems • Multichannel systems

  22. Figure 15.6 The Hybrid Grid

  23. Managing Channel Conflict • Adoption of superordinate goals • Cooptation • Diplomacy • Mediation • Arbitration

  24. e-Commerce Marketing Practices • Pure-click • Brick-and-click • Brick-and-mortar

  25. Marketing Debate • Does it matter where you are sold? Take a position: • Channel images do not really affect the brand images of the products they they sell that much. 2. Channel images must be consistent with the brand image.

  26. Marketing Discussion • Think of your favorite retailers. How have they integrated their channel system? How would you like their channels to be integrated? Do you use multiple channels from them? Why?

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