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CH 15 Designing and Managing Value Networks and Channels PowerPoint Presentation
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CH 15 Designing and Managing Value Networks and Channels

CH 15 Designing and Managing Value Networks and Channels

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CH 15 Designing and Managing Value Networks and Channels

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  1. CH 15 Designing and Managing Value Networks and Channels Kotler Koshy Keller Jha

  2. Marketing Channels Sets of interdependent organizations involved in the process of making a product or service available for use or consumption.

  3. Channels and Marketing Decisions Push Strategy Pull Strategy

  4. Categories of Buyers • Habitual shoppers • High value deal seekers • Variety-loving shoppers • High-involvement shoppers

  5. Buyer Expectations for Channel Integration • 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

  6. Channel Member Functions • 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

  7. Designing a Marketing Channel System • Analyze customer needs • Establish channel objectives • Identify major channel alternatives • Evaluate major channel alternatives

  8. Identifying Channel Alternatives • Types of intermediaries • Number of intermediaries • Terms and responsibilities

  9. Channel-Management Decisions • Selecting channel members • Training channel members • Motivating channel members • Evaluating channel members • Modifying channel members

  10. Channel Integration and Systems • 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