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Designing Effective Marketing Channel Systems

Explore the intricacies of marketing channel systems, learn how to integrate channels, manage conflict, and make strategic decisions. This chapter delves into buyer expectations, channel functions, and the ever-evolving realm of e-commerce marketing practices.

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Designing Effective Marketing Channel Systems

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  1. MARKETING MANAGEMENT12th edition 15 Designing and Managing Value Networks and Channels Kotler Keller

  2. Chapter Questions • What is a marketing channel system and value network? • What work do marketing channels perform? • How should channels be designed? • What decisions do companies face in managing their channels? • How should companies integrate channels and manage channel conflict? • What is the future for e-commerce?

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

  4. Channels and Marketing Decisions Push Strategy Pull Strategy

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

  6. 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

  7. Should the 4 P’s be replaced? • Solutions • Information • Value • Access

  8. 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

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

  10. Channel Service Outputs • Lot size • Waiting/delivery time • Spatial convenience • Product variety • Service backup

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

  12. Number of Intermediaries • Exclusive • Selective • Intensive

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

  14. Channel Power • Coercive • Reward • Legitimate • Expert • Referent

  15. Channel Integration and Systems • Vertical marketing systems • Corporate VMS • Administered VMS • Contractual VMS • Horizontal marketing systems • Multichannel systems

  16. Managing Channel Conflict • Adoption of superordinate goals • Cooptation • Diplomacy • Mediation • Arbitration

  17. e-Commerce Marketing Practices • Pure-click • Brick-and-click • Brick-and-mortar

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