CHAPTER 17 Designing And Managing Integrated Marketing Channels

CHAPTER 17 Designing And Managing Integrated Marketing Channels Copyright © 2016 Pearson Education, Inc. 17 -

MARKETING CHANNELS AND VALUE NETWORKS • Marketing channels – Sets of interdependent organizations participating in the process of making a product or service available for use or consumption – Intermediaries: merchants, agents, and facilitators Copyright © 2016 Pearson Education, Inc. 17 -2

MARKETING CHANNELS AND VALUE NETWORKS • A marketing channel system – The particular set of marketing channels a firm employs – Push vs. pull strategy Copyright © 2016 Pearson Education, Inc. 17 -3

MARKETING CHANNELS AND VALUE NETWORKS • Multichannel marketing – Using two or more marketing channels to reach customer segments in one market area – Omnichannel marketing – Integrated marketing channel system Copyright © 2016 Pearson Education, Inc. 17 -4

MARKETING CHANNELS AND VALUE NETWORKS • The digital channels revolution – Customer support in store/online/phone – Check online for product availability at local stores – Order product online to pick up at store – Return a product purchased online to a nearby store Copyright © 2016 Pearson Education, Inc. 17 -5

THE ROLE OF MARKETING CHANNELS • Channel functions and flows Copyright © 2016 Pearson Education, Inc. 17 -6

THE ROLE OF MARKETING CHANNELS • Channel levels – Zero-level channel (direct) – One/two/three-level channels (intermediaries) – Reverse-flow channels • Service sector channels Copyright © 2016 Pearson Education, Inc. 17 -7

FIGURE 17. 3 CONSUMER/INDUSTRIAL MARKETING CHANNELS Copyright © 2016 Pearson Education, Inc. 17 -8

CHANNEL-DESIGN DECISIONS • Identifying major channel alternatives Types of intermediaries Number of intermediaries Terms/responsibilities of channel members Copyright © 2016 Pearson Education, Inc. 17 -9

IDENTIFYING MAJOR CHANNEL ALTERNATIVES • Number of intermediaries – Exclusive distribution – Selective distribution – Intensive distribution Copyright © 2016 Pearson Education, Inc. 17 -10

E-COMMERCE MARKETING PRACTICES • E-commerce – Uses a Web site to transact or facilitate the sale of products and services online • Pure-click vs. brick-and-click companies Copyright © 2016 Pearson Education, Inc. 17 -11

M-COMMERCE MARKETING PRACTICES • Mobile channels and media can keep consumers as connected and interacting with a brand as they choose – Advertising and promotion – Geofencing • Privacy issues Copyright © 2016 Pearson Education, Inc. 17 -12

CONFLICT, COOPERATION, AND COMPETITION • Channel conflict – Generated when one channel member’s actions prevent another channel member from achieving its goal • Channel coordination – Occurs when channel members are brought together to advance the goals of the channel instead of their own potentially incompatible goals Copyright © 2016 Pearson Education, Inc. 17 -13

CONFLICT, COOPERATION, AND COMPETITION • Causes of channel conflict ü Goal incompatibility ü Unclear roles and rights ü Differences in perception ü Intermediaries’ dependence on manufacturer Copyright © 2016 Pearson Education, Inc. 17 -14