Download Marketing Channels and Channel Mapping

Chapter Nine
Marketing
Channels and
Channel Mapping
Marketing
Channels and Channel Mapping
•
•
•
•
Channel mapping
Marketing channel performance
Alternative marketing channels
Marketing channels that improve customer
value
• Marketing channels and competitive
advantage
• Profit impact of alternative marketing
channels
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Channel Map
A CHANNEL MAP is a diagram of the
types of purchase points a business uses.
Figure 9-1 Channel Map for an
Electronic Components Company
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Marketing Channels and
Channel Strategy
• What are Marketing
Channels?
• What types of Marketing
Channels exist?
– Direct
– Indirect
– Mixed
• What is the primary
objective of a Marketing
Channel?
• What three areas of
performance will the
choice of channel
impact?
– Customer Value
– Sales Revenues
– Profitability
• How can Marketing
Channels serve as a
source of Competitive
Advantage?
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Marketing Channel Performance
Channel
Performance
Customer
Reach
(Volume)
Operating
Efficiency
(Cost to Serve)
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Service
Quality
(Retention)
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Alternative Channel Systems
Direct Channel
Systems
Mixed Channel
Systems
Indirect Channel
Systems
Channel
Intermediaries
Target Market Customers
Which Channel System is most preferred by firms?
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Direct Channel Systems
Direct
Sales
Online
Marketing
Direct
Marketing
TeleMarketing
Reps/
Agents
Consumer Markets
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Indirect Channel Systems
Indirect
Channel
Systems
Wholesalers
Reps/
Agents
Retailers
Consumer
Markets
Why do firms use Indirect Channel Systems?
When is it appropriate to use Mixed Channel Systems?
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Alternative B2B Marketing Channel
Figure 9-12 Alternative B2B Marketing Channels
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Channel Systems That Build
Customer Value
How does a channel
system enhance
customer value?
Customer
Value
Product
Benefits
Price
Service
Benefits
Non-price
Costs
Brand
Benefits
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Building Value
• Delivering Product Benefits
– Product quality
– Product assortment
– Product form
• Delivering Service Benefits
– After-sale services
– Availability/delivery
– Transaction services
• Improving Cost Efficiency
– i.e., making a product readily available
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Channel Systems and
Competitive Advantage
• Sales force advantage
• Sales productivity
• Distribution advantage
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Distribution Advantage
Figure 9-20 Channel Margin vs. Channel Marketing Expenses
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Review
•
•
•
•
Channel mapping
Marketing channel performance
Alternative marketing channels
Marketing channels that improve customer
value
• Marketing channels and competitive
advantage
• Profit impact of alternative marketing
channels
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
Copyright © 2009 Pearson Education, Inc.
Publishing as Prentice Hall
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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