ch 15 designing and managing value networks and channels
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CH 15 Designing and Managing Value Networks and Channels. Kotler Koshy Keller Jha. Marketing Channels. Sets of interdependent organizations involved in the process of making a product or service available for use or consumption. Channels and Marketing Decisions. Push - PowerPoint PPT PresentationTRANSCRIPT
CH 15 Designing and Managing
Value Networks and Channels
Kotler Koshy
Keller Jha
MARKETING CHANNELS
15-2
Sets of interdependent organizationsinvolved in the process of making a product or service available for use
or consumption.
CHANNELS AND MARKETING DECISIONS
15-3
Push
Strategy
Pull
Strategy
Habitual shoppers
High value deal seekers
Variety-loving shoppers
High-involvement shoppers
CATEGORIES OF BUYERS
15-4
• Ability to order a product online and pick it up at a convenient retail location
• Ability to return an online-ordered product to a nearby store
• Right to receive discounts based on total online and offline purchases
BUYER EXPECTATIONS FOR CHANNEL INTEGRATION
15-5
• Gather information• Develop and disseminate
persuasive communications• Reach agreements on price and
terms• Acquire funds to finance
inventories• Assume risks• Provide for storage• Provide for buyers’ payment of
their bills• Oversee actual transfer of
ownership
CHANNEL MEMBER FUNCTIONS
15-6
• Analyze customer needs• Establish channel
objectives• Identify major channel
alternatives• Evaluate major channel
alternatives
DESIGNING A MARKETING CHANNEL SYSTEM
15-7
Types of intermediaries
Number of intermediaries
Terms and responsibilities
IDENTIFYING CHANNEL ALTERNATIVES
15-8
Selecting channel members
Training channel members
Motivating channel members
Evaluating channel members
Modifying channel members
CHANNEL-MANAGEMENT DECISIONS
15-9
Vertical marketing systems: one of the channel members may own the others, influence the others due to better bargaining power, or develop a contractual arrangement with the different channel members•Corporate VMS: one of the channel members exerts complete control over the rest of the channel partners and everyone follows the objectives and procedures as dictated by this dominant channel member.
•Administered VMS: is similar to a conventional distribution system except that there are greater inter-organizational relationships and sharing of an overall objective
•Contractual VMS: consists of independent firms operating at different channel levels and forming a system on a contractual basis
Horizontal marketing systems: Joining of two or more corporations on the same level for the purposes of pursuing a new marketing opportunity
Multichannel systems: a system in which a producer uses more that one channel of distribution, commonly, producers who use multichannel marketing systems operate their own retail stores as well as sell through other wholesalers and retailers
CHANNEL INTEGRATION AND SYSTEMS
15-10