chapter 16 marketing channels. 15-2 in this chapter… marketing channels of distribution and why...
TRANSCRIPT
Chapter 16
Marketing Channels
15-2
In this chapter…In this chapter…
Marketing channels of distribution and why intermediaries are needed.
Traditional marketing channels, electronic marketing channels, and vertical marketing systems.
Factors that marketing executives consider when selecting and managing a marketing channel.
The variety of terms usedfor marketing intermediaries that vary in specificity and use in consumer and business markets
NATURE AND IMPORTANCE OF MARKETING CHANNELS
THE VALUE CREATED BY INTERMEDIARIES
Marketing Channel
Functions Performed by Intermediaries
• Transactional Function
• Logistical Function
• Facilitating Function
Utilities Received by Consumers
Marketing channel intermediaries perform three functions,each consisting of different activities
CHANNEL STRUCTURE & ORGANIZATIONMARKETING CHANNELS FOR
CONSUMER PRODUCTS AND SERVICES
Direct Channel
Indirect Channel
• Retailers
• WholesalersRetailers
• AgentsWholesalersRetailers
Common marketing channels for consumer products and services by the kind and number of intermediaries
CHANNEL STRUCTURE & ORGANIZATIONMARKETING CHANNELS FOR
BUSINESS PRODUCTS AND SERVICES
Direct Channel
Indirect Channel
• Industrial Distributor
• Agents
• AgentsIndustrial Distributors
Common marketing channels for business products and services by the kind and number of intermediaries
CHANNEL STRUCTURE & ORGANIZATIONELECTRONIC & DIRECT MARKETING CHANNELS;
MULTICHANNEL MARKETING
Electronic Marketing Channels
Direct Marketing Channels
Multichannel Marketing
Consumer electronic marketing channels are similar to those for consumer products and services
CHANNEL STRUCTURE & ORGANIZATIONDUAL DISTRIBUTION &
STRATEGIC CHANNEL ALLIANCES
Dual Distribution
Strategic ChannelAlliances
Honey NutCherrios Ad
Three types of vertical marketing systems: corporate, contractual (most popular), and administered
CHANNEL STRUCTURE & ORGANIZATIONVERICAL MARKETING SYSTEMS
Vertical Marketing Systems
Corporate Systems
• Wholesaler-Sponsored Voluntary Chains
Contractual Systems
• Retailer-Sponsored Cooperatives
• Forward Integration
• Backward Integration
CHANNEL STRUCTURE & ORGANIZATIONVERICAL MARKETING SYSTEMS
Contractual Systems
• Franchising
Manufacturer-Sponsored Retail Franchises
Manufacturer-Sponsored Wholesale Franchises
Service-Sponsored Retail Franchises
Service-Sponsored Franchises
Administered Systems
CHANNEL CHOICE AND MANAGEMENTCHANNEL CHOICE CONSIDERATIONS
Target Market Coverage (Density)
• Intensive Distribution
• Exclusive Distribution
• Selective Distribution
Gucci
CHANNEL CHOICE AND MANAGEMENTCHANNEL CHOICE CONSIDERATIONS
• Information • Convenience
• Variety • Pre- or Post-SaleService
Buyer Requirements
Profitability
CHANNEL CHOICE AND MANAGEMENTCHANNEL RELATIONSHIPS
Sources of Channel Conflict
• Vertical Conflict
• Disintermediation
• Horizontal Conflict
CHANNEL CHOICE AND MANAGEMENTCHANNEL RELATIONSHIPS
Channel Influence
• Economic
• Expertise
• Identification
• Legitimate Right
Channel Captain