Published on July 24, 2014
12 - 2 Definitions Value Delivery Network The network made up of the company, suppliers, distributors, and ultimately customers who “partner” with each other to improve the performance of the entire system.
12 - 3 Marketing Channels Sets of interdependent organizations involved in the process of making a product or service available for use or consumption.
12 - 4 • Without Middlemen M1 M2 M3 M4 C1 C2 C3 C4
12 - 5 • With M1 M2 M3 M4 DISTRIBUTOR C1 C2 C3 C4
12 - 6 Nature & Importance of Marketing Channels • Channel choices affect other decisions in the marketing mix Pricing, Marketing communications • A strong distribution system can be a competitive advantage • Channel decisions involve long- term commitments to other firms
12 - 7 Nature & Importance of Marketing Channels • How Channel Members Add Value Intermediaries require fewer contacts to move the product to the final purchaser. Intermediaries help match product assortment demand with supply. Intermediaries help bridge major time, place, and possession gaps that separate products from those who would use them.
12 - 8 Value FormForm TimeTime PlacePlace PossessionPossession InformationInformation ServiceService OPEN 24 HRSOPEN 24 HRS
12 - 9 Key Functions Performed by Channel Members Nature & Importance of Marketing Channels • Information • Promotion • Contact • Matching • Negotiation • Physical Distribution • Financing • Risk taking
12 - 10 Nature & Importance of Marketing Channels • Number of Channel Levels The number of intermediary levels indicates the length of a marketing channel. • Direct Channels • Indirect Channels Producers lose more control and face greater channel complexity as additional channel levels are added.
12 - 11 Non-Store Distribution • E-tailing • Telemarketing • Vending Machines, Kiosks, Carts • Internet • Direct Selling • Multilevel Marketing • Direct Marketing
12 - 12 The Supply ChainThe Supply Chain
12 - 13 Channel Members Are Connected Via A Variety of Flows Nature & Importance of Marketing Channels • Physical Flow • Payment Flow • Information Flow • Promotion Flow • Flow of OwnershipFlow of Ownership
12 - 14 Channel Behavior and Organization • Channel Conflict Occurs when channel members disagree on roles, activities, or rewards. Types of Conflict: • Horizontal conflict: occurs among firms at the same channel level • Vertical conflict: occurs among firms at different channel levels
12 - 15 Channel Behavior and Organization • Conventional Distribution Channels Consists of one or more independent channel members Lack leadership and power Often result in poor performance • Vertical Marketing Systems Consists of members acting as a unified system Use contracts, ownership or power
12 - 16 Channel Behavior and Organization • Corporate VMS • Contractual VMS • Administered VMS • Corporation owns production and distribution • Coordination and conflict through regular organizational channels Vertical Marketing Systems
12 - 17 Channel Behavior and Organization • Corporate VMS • Contractual VMS • Administered VMS • Individual firms who join through contracts • Franchise organizations Manufacturer- sponsored retailer franchise system Manufacturer- sponsored wholesaler franchise system Service-firm-sponsored retailer franchise system Vertical Marketing Systems
12 - 18 Channel Behavior and Organization • Corporate VMS • Contractual VMS • Administered VMS • Leadership through the size and power of dominant channel members • Leadership could be manufacturer or retailer Vertical Marketing Systems
12 - 19 Channel Behavior and Organization • Horizontal Marketing Systems Companies at the same level work together with channel members • Multichannel Distribution Systems Also called hybrid marketing channels Occurs when a firm uses two or more marketing channels • Changing Channel Organization Disintermediation
12 - 20 Channel Design Decisions • Step 1: Analyzing Consumer Needs Cost and feasibility of meeting needs must be considered • Step 2: Setting Channel Objectives Set channel objectives in terms of targeted level of customer service Many factors influence channel objectives
12 - 21 Channel Design Decisions • Step 3: Identifying Major Alternatives Types of intermediaries • Company sales force, manufacturer’s agency, industrial distributors Number of marketing intermediaries • Intensive, selective, and exclusive distribution Responsibilities of channel members
12 - 22 Retail Store Distribution • Intensive SelectiveSelective ExclusiveExclusive
12 - 23 Channel Design Decisions • Step 4: Evaluating Major Alternatives Economic criteria Control issues Adaptive criteria
12 - 24 Distribution/Storage Mode • Railroad • Motor Vehicles • Water • Pipeline • Air
Brands are more invested today than ever before on curating and distributing paid,...
Marketers need to be creating and publishing original content across many differen...
As content marketing continues to increase in popularity in every industry, more m...
Il Direct Email Marketing (DEM) è una tipologia di marketing diretto che usa la po...
This presentation contains all 120 rules from Part 1 of the 2nd edition of "Email ...
Wie die meisten Marketing-Maßnahmen führt Produktplatzierung zu expliziten und impliziten Werbewirkungseffekten.
Placing Marketing - Download as Powerpoint Presentation (.ppt), PDF File (.pdf), Text File (.txt) or view presentation slides online. Presentation on ...
Definition of place marketing: A practice involving the application of branding and sales strategies to different regions, cities, states or countries.
Management der Marketing-Kommunikation. Das gesamte Instrumentarium moderner Marketing-Kommunikation in einem Buch: ...
The marketing mix, as part of the marketing strategy, is the set of controllable, tactical marketing tools that a company uses to produce a desired ...
Place and distribution strategies from the marketing mix are designed to get the produt and service to the end user.
Product placement stands out as a marketing strategy because it is the most direct attempt to ... Placing contemporary products into existing content ...
Placing Marketing Technology in Context Stephen Brooks. A Few Weeks With The Samsung Galaxy Note7: Review Shelly Palmer. Focus on What Won't Change Brian ...
Yahoo expands content marketing and mobile advertising offerings; Exploring new terrain with Jeep; Chobani sees healthy results with Yahoo Search Ads and ...
Marketing is the process of getting your business noticed by the people who need or want your products or services. Many small businesses come up with ...