Transcript KotlerMM_ch15 - BLOG OF MANAGEMENT SCIENCE (BMS)

MARKETING MANAGEMENT
12th edition
15
Designing and
Managing
Value Networks and
Channels
Kotler
Keller
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?
15-2
Marketing Channels
Sets of interdependent organizations
involved in the process of making a
product or service available for use
or consumption.
15-3
Channels and
Marketing Decisions
Push
Strategy
Pull
Strategy
15-4
Categories of Buyers
Habitual shoppers
High value deal seekers
Variety-loving shoppers
High-involvement shoppers
15-5
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
15-6
Should the 4 P’s be replaced?
•
•
•
•
Solutions
Information
Value
Access
15-7
Figure 15.1 Increasing Efficiency
15-8
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
15-9
Figure 15.2 Marketing Channel Flows
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Figure 15.3
Consumer Marketing Channels
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Figure 15.3 Industrial
Marketing Channels
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Designing a Marketing Channel
System
Analyze customer needs
Establish channel objectives
Identify major channel alternatives
Evaluate major channel alternatives
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Channel Service Outputs
Lot size
Waiting/delivery time
Spatial convenience
Product variety
Service backup
15-14
Identifying Channel Alternatives
Types of
intermediaries
Number of
intermediaries
Terms and
responsibilities
15-15
Number of Intermediaries
Exclusive
Selective
Intensive
15-16
Figure 15.4 The Value-Adds Versus Costs
of Different Channels
15-17
Figure 15.5 Break-Even Chart for the Choice
Between A Company Sales Force and
Manufacturer’s Sales Agency
15-18
Channel-Management Decisions
Selecting channel members
Training channel members
Motivating channel members
Evaluating channel members
Modifying channel members
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Channel Power
•
•
•
•
•
Coercive
Reward
Legitimate
Expert
Referent
15-20
Channel Integration and Systems
Vertical marketing
systems
• Corporate VMS
• Administered VMS
• Contractual VMS
Horizontal marketing
systems
Multichannel systems
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Figure 15.6 The Hybrid Grid
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Managing Channel Conflict
• Adoption of
superordinate goals
• Cooptation
• Diplomacy
• Mediation
• Arbitration
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e-Commerce Marketing Practices
• Pure-click
• Brick-and-click
• Brick-and-mortar
15-24
Marketing Debate
 Does it matter where you are sold?
Take a position:
1. Channel images do not really affect
the brand images of the products they
they sell that much.
2. Channel images must be consistent with
the brand image.
15-25
Marketing Discussion
 Think of your favorite retailers.
How have they integrated their
channel system? How would you
like their channels to be integrated?
Do you use multiple channels
from them? Why?
15-26