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Designing and Managing Integrated Marketing Channels
The document discusses the design and management of integrated marketing channels, defining a marketing channel system as a collection of organizations facilitating product availability. It outlines push and pull strategies, identifies different types of shoppers and channel member functions, and emphasizes the importance of channel management decisions. Additionally, it addresses channel conflict and provides case studies for practical illustration.
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Designing and Managing Integrated Marketing Channels
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- 3. What is aMarketing Channel? 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.
- 4. Channels and Marketing Decisions A push strategy uses the manufacturer’s sales force, trade promotion money, and other means to induce intermediaries to carry, promote, and sell the product to end users. A pull strategy uses advertising, promotion, and other forms of communication to persuade consumers to demand the product from intermediaries.
- 5. Categories of Buyers Habitualshoppers High value deal seekers Variety-loving shoppers High-involvement shoppers
- 6. Types of Shoppers Service/quality customers Price/value customers Affinity customers
- 7. Channel Member Functions Gatherinformation Develop and disseminate persuasive communications Reach agreements on price and terms Acquire funds to finance inventories Assume risks Provide space for storage Provide support for buyers’ payment of their bills Oversee actual transfer of ownership
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- 10. Figure 15.3 Consumer MarketingChannels
- 11. Figure 15.3 Industrial MarketingChannels
- 12. Designing a Marketing ChannelSystem Analyze customer needs Evaluate major channel alternatives Identify major channel alternatives Establish channel objectives
- 13. Channel Service Outputs Lotsize Waiting/delivery time Spatial convenience Product variety Service backup
- 14. Identifying Channel Alternatives Typesof intermediaries Number of intermediaries Terms and responsibilities
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- 17. Terms and Responsibilities ofChannel Members Price policy Condition of sale Distributors’ territorial rights Mutual services and responsibilities
- 18. The Value-Adds vs.Costs of Different Channels
- 19. Channel-Management Decisions Selecting channelmembers Training channel members Motivating channel members Evaluating channel members Modifying channel members
- 20. Channel Power Coercive Reward Legitimate Expert Referent
- 21. What is ChannelConflict? Channel conflict occurs when one member’s actions prevent another channel from achieving its goal. Types of channel conflict Vertical Horizontal Multichannel
- 22. Case Study –Titan Watches Sold through Seven different stores. World of Titan Time Zone Valuemart Sonata Stores Titan Signet Club Tanisqu boutiques
- 23. Case study- HUL 100 brands and 100 plants 1, 000 products company distribute them nationally through network of four warehouses, more than 40 agents, 75,00 wholesalers and a number of instutional customers Project Shakti – 2001 – through SHGs