Download KotlerMM_ch03 - Middle East Technical University

MARKETING MANAGEMENT
14th edition
15
Designing and
Managing Integrated
Marketing Channels
Kotler
Keller
How a Marketing Intermediary Reduces the
Number of Channel Transactions
CHPT: 15&16-2
Distribution Channel Functions
These Functions Should be Assigned to the Channel Member Who Can
Perform Them Most Efficiently and Effectively to Provide Satisfactory
Assortments of Goods and Services to Target Customers.
Risk Taking
Financing
Information
Promotion
Physical
Distribution
Negotiation
Contact
Matching
CHPT: 15&16-3
Number of Channel Levels
Channel Level - Each Layer of Marketing Intermediaries that
Perform Some Work in Bringing the Product and its Ownership
Closer to the Final Buyer.
Channel 1
Direct Channel
M
Channel 2
Indirect Channel
M
C
R
C
R
C
R
C
Channel 3
M
W
Channel 4
M
W
J
CHPT: 15&16-4
Channel Behavior & Conflict
• The channel will be most effective when:
– each member is assigned tasks it can do best.
– all members cooperate to attain overall channel goals
and satisfy the target market.
• When this doesn’t happen, conflict occurs:
– Horizontal Conflict occurs among firms at the same
level of the channel, i.e retailer to retailer.
– Vertical Conflict occurs between different levels of the
same channel, i.e. wholesaler to retailer.
• For the channel to perform well, each channel
member’s role must be specified and conflict
must be managed.
CHPT: 15&16-5
Conventional Marketing Channel vs.
Vertical Marketing System
Conventional
Marketing
Channel
Vertical
Marketing
System
Manufacturer
Wholesaler
Retailer
Consumer
Wholesaler
Manufacturer
Retailer
Consumer
CHPT: 15&16-6
Types of Vertical Marketing
Systems
Corporate
Common Ownership at Different
Levels of the Channel i.e. Sears
Degree
of Direct
Control
Contractual
Contractual Agreements Among
Channel Members
Administered
Leadership is Assumed by One or
a Few Dominant Members i.e. Kraft
CHPT: 15&16-7
Types of Vertical Marketing
Systems
Vertical Marketing
Systems (VMS)
Corporate
VMS
Wholesaler Sponsored
Voluntary Chain
ManufacturerSponsored Retailer
Franchise System
Contractual
VMS
Retailer
Cooperatives
Administered
VMS
Franchise
Organizations
ManufacturerSponsored Wholesaler
Franchise System
Service-FirmSponsored
Franchise System
CHPT: 15&16-8
Channel Design Decisions
Analyzing Consumer Service Needs
Setting Channel Objectives & Constraints
Identifying Major Alternatives
Intensive
Distribution
Selective
Distribution
Exclusive
Distribution
Evaluating the Major Alternatives
Designing International Distribution Channels
CHPT: 15&16-9
MARKETING MANAGEMENT
14th edition
16
Managing Retailing
and Wholesaling
Kotler
Keller
What is Retailing?
Includes
all the activities
Involved in Selling
Goods or Services
Directly to Final
Consumers for Their
Personal,
Nonbusiness Use.
CHPT: 15&16-11
Retailing
• Retailing can be done in stores (store retailing)
or out of a store (nonstore retailing) such as:
–
–
–
–
–
Direct mail,
Catalogs,
Telephone,
Home shopping shows,
Internet.
CHPT: 15&16-12
Classification of Retailing
Amount of Service
Self-Service, Limited-Service and
Full-Service Retailer
Product Line
Length and Breadth of the Product
Assortment
Relative Prices
Pricing Structure that is Used
by the Retailer
Retail Organizations
Independent, Corporate, or
Contractual
Ownership Organization
CHPT: 15&16-13
Classification of Retailing:
Amount of Service
Self-Service
Retailer
Provide Few or No
Services to
Shoppers
i.e. Migros
Limited-Service
Retailers
Provide Only a Limited
Number of Services
to Shoppers
i.e. Çarşı
Full-Service
Retailers
Retailers that Provide a
Full Range of Services
to Shoppers
i.e. Arçelik
CHPT: 15&16-14
Classification of Retailing:
Product Line
Store
Specialty Stores
Department Stores
Supermarkets
Convenience Stores
Superstores
Discount Stores
Off-Price Retailers
Warehouse Clubs
Description
Narrow Product Line, Deep Assortment i.e.
Deriden, Timberland
Wide Variety of Product Lines i.e. Clothing,
Yeni Karamürsel, Çarşı
Wide Variety of Food, Laundry, & Household
Products i.e. Canerler
Limited Line of High-Turnover Convenience
Goods i.e. Büfeler, bakkallar
Large Assortment of Routinely Purchased
Food & Nonfood Products i.e. Real, Migros
Standard Merchandise at Lower Prices
i.e. Ulus, Kızılay mağazaları
Changing Collection of Higher-Quality
Goods at a Reduced Price i.e. Outlet
Limited Selection of Brand-Name Grocery
Items, Appliances, Etc. i.e. Metro
CHPT: 15&16-15
Classification of Retailing:
Retail Organization
Corporate Chain
(TGI)
Membership Group
(Fabrika, Çarşı, Network. Beymen)
Leased
(Tepe Home)
Franchise
(North Shield)
Independent
Retailers
CHPT: 15&16-16