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Transcript of Kotler mm 14e_15_ippt
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15Designing and
Managing Integrated Marketing Channels
1
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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 are the key issues with e-commerce and
m-commerce?
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-2
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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-3
What is a Marketing 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.
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Intermediaries
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-4
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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-5
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
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REI Employs Hybrid Channels
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-6
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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-7
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
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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-8
Table 15.1 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
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Figure 15.1 Marketing Flows in the Marketing Channel for Forklift Trucks
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-9
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Marketing Channel Levels
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Figure 15.2 Consumer Markets
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-11
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Figure 15.2 Industrial Markets
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Reverse-Flow Channels
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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-14
Designing a Marketing Channel System
Analyze customer needs Establish channel objectives Identify major channel alternatives Evaluate major channel alternatives
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Figure 15.3 What European Consumers Value
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-15
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Service Outputs of Channels
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-16
Lot size
Waiting and delivery time
Spatial convenience
Product variety
Service backup
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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-17
Identifying Channel Alternatives
Types of intermediaries Number of intermediaries Terms and responsibilities
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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-18
Number of Intermediaries
Exclusive Selective Intensive
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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-19
Terms and Responsibilities of Channel Members
Price policy Condition of sale Distributors’ territorial rights Mutual services and responsibilities
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Figure 15.4 The Value-Adds versus Costs of Different Channels
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-20
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Figure 15.5 Break-Even Cost Chart
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-21
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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-22
Channel-Management Decisions
Selecting channel members Training channel members Motivating channel members Evaluating channel members Modifying channel members
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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-23
Channel Power
Coercive
Reward
Legitimate
Expert
Referent
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Channel Integration and Systems
Vertical marketing systems
Corporate VMS Administered VMS Contractual VMS
Horizontal marketing systems
Multichannel systems
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-24
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Integrated Marketing Channel System
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-25
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Figure 15.6 The Hybrid Grid
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-26
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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-27
Channel Conflict
What types of conflict arise in channels? What causes conflict? What can marketers do to resolve it?
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Causes of Channel Conflict
Goal incompatibility Unclear roles and rights Differences in perception Intermediaries’ dependence on manufacturer
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Table 15.3 Strategies for Managing Channel Conflict
Strategic justification
Dual compensation Superordinate goals Employee exchange Joint memberships
Cooptation Diplomacy Mediation Arbitration Legal recourse
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E-Commerce
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Pure-click
Brick-and-click
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M-Commerce
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-31
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For Review
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 are the key issues with e-commerce and
m-commerce? Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-32