+Top 10 Concepts

Chapter 15: Designing and Managing Integrated Marketing Channels

Rose Ann S. PalmaAteneo Graduate School of Business

May 2010

+Outline1. Push and pull marketing strategies can do

wonders for products and services.

2. Employing hybrid channels increases a company’s chances of success.

3. Several channel levels can be involved in the flow of products from the source to the user.

4. Marketing channels are not limited to physical goods.

5. To customers, the channels are the company.

+Outline1. Manufacturers have power over their channels.

2. Channel systems are dynamic.

3. Periodic Evaluation and Modification of Channel Designs and Arrangements are Necessary.

4. Brand Image Matters

5. Technological advances gave rise to E-commerce marketing

+ 1. Push and pull marketing strategies can do wonders for products and services.

Manufacturer’s sales force

Low brand loyalty

Impulse item

Advertising and promotion

High brand loyalty

+Examples: Concept 1

Kottler:

Medical - FitrumLocal - Colgate

+ 2. Employing hybrid channels increases a company’s chances of success.

Increase number of “go-to-market”

Channel integration can be expected

+Examples: Concept 2

Kottler:

Local: GlobeMedical – Mega Clinic

+ 3. Several channel levels can be involved in the flow of products from the source to the user.

Zero- level One-level Two-level Three- level

+Examples: Concept 3

Kottler:

Medical – Sari-sari StoreLocal – National Book Store

+ 4. Marketing channels are not limited to physical goods.

SERVICES

PEOPLE

+ Examples: Concept 4

Kottler:

Medical – The Medical City, The Doctors

Local – ABS-CBN, Melanie Marquez

+ 5. To customers, the channels are the company.

Select channel members well

EVALUATE!

+Examples: Concept 5

Kottler:

Medical – Delos Santos Medical Center (G.R. No. 124354 )

Local – Xend Express

+ 6. Manufacturers have power over their channels.

Coercive Reward

Legitimate

Expert

Referent

+Examples: Concept 6

Kottler:

Medical – Pharmaceutical Companies to Doctors

Local – Petron

+7. Channel systems are dynamic.

Vertical Marketing Systems

Horizontal Marketing Systems

Multichannel Systems

+Examples: Concept 7

Kottler:

Medical – Starbucks and other Coffee Shops

Local – BPI and other banks

+ 8. Periodic Evaluation and Modification of Channel Designs and Arrangements are Necessary.

Make changes if not working

+Examples: Concept 8

Local – BPI

Medical – The Medical CityKottler

+9. Brand Image Matters

+Examples: Concept 9

Local –H&M

Medical – The Belo Medical Group

Kottler

+ 10. Technological advances gave rise to E-commerce marketing

E-commerce

E-marketing

E-purchasing

+Examples: Concept 10

Local –CD R King

Medical – All Heart Medical StoreKottler

+Outline1. Push and pull marketing strategies can do

wonders for products and services.

2. Employing hybrid channels increases a company’s chances of success.

3. Several channel levels can be involved in the flow of products from the source to the user.

4. Marketing channels are not limited to physical goods.

5. To customers, the channels are the company.

+Outline1. Manufacturers have power over their channels.

2. Channel systems are dynamic.

3. Periodic Evaluation and Modification of Channel Designs and Arrangements are Necessary.

4. Brand Image Matters

5. Technological advances gave rise to E-commerce marketing

+Top 10 Concepts

Chapter 15: Designing and Managing Integrated Marketing Channels

Rose Ann S. PalmaAteneo Graduate School of Business

May 2010