Download Chapter 17

Chapter
17
Designing
And Managing
Integrated
Marketing Channels
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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
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Marketing Channels
and Value Networks
• A marketing channel system
– The particular set of marketing channels a
firm employs
– Push vs. pull strategy
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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
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Marketing Channels
and Value Networks
• Value network
– A system of partnerships and alliances that a
firm creates to source, augment, and deliver
its offerings
– Demand chain planning
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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
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The Role of
Marketing Channels
• Channel functions and flows
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The Role of
Marketing Channels
• Channel levels
– Zero-level channel
(direct)
– One/two/three-level
channels
(intermediaries)
– Reverse-flow channels
• Service sector channels
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Figure 17.3
Consumer/Industrial Marketing Channels
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Channel-Design Decisions
• Identifying major channel alternatives
Types of intermediaries
Number of intermediaries
Terms/responsibilities of
channel members
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Identifying major channel
alternatives
• Number of
intermediaries
– Exclusive
distribution
– Selective
distribution
– Intensive
distribution
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Training and Motivating Channel
Members
• Channel partnerships
and ECR practices
– Demand-side
management
– Supply-side
management
– Enablers and
integrators
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Channel Integration and Systems
• Conventional
marketing channel
• Vertical marketing
systems
• Horizontal
marketing systems
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Vertical
Marketing Systems
• Corporate VMS
• Administered VMS
• Contractual VMS
– Wholesaler-sponsored voluntary chains
– Retailer cooperatives
– Franchise organizations
• New competition in retailing
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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
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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
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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
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Conflict, Cooperation,
and Competition
• Causes of channel conflict
 Goal incompatibility
 Unclear roles and rights
 Differences in perception
 Intermediaries’ dependence on
manufacturer
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