Transcript Chapter15and16.ppt

Chapter Questions
• What is a marketing channel system and
value network?
• What work do marketing channels perform?
• 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?
15-1
Marketing Channels
Sets of interdependent organizations
involved in the process of making a
product or service available for use
or consumption.
15-2
Examples of Channels
• Dell (DTC)
• Avon
• Canada Post
• Grainger (auto parts network)
• Coca-cola (bottlers)
• McDonald’s restaurants (franchisee)
15-3
Increasing Efficiency
15-4
Consumer Marketing Channels
15-5
Wholesaling Functions
• Selling and promoting
• Buying and
assortment building
• Bulk breaking
• Warehousing
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Transportation
Financing
Risk bearing
Market information
Management services
and counseling
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Identifying Channel Alternatives
Types of
intermediaries
Number of
intermediaries
Terms and
responsibilities
15-7
Channel Service Outputs
Lot size
Waiting/delivery time
Spatial convenience
Product variety
Service backup
15-8
Major Wholesaler Types
Merchant
Full-service
Limited-service
Brokers and agents
Manufacturers
Specialized
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Wholesalers’ Marketing Decisions
Target market
Product assortment
Price
Promotion
Place
16-10
Number of Intermediaries
Exclusive
Selective
Intensive
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Market Logistics Planning
• Deciding on the company’s value
proposition to its customers
• Deciding on the best channel design and
network strategy
• Developing operational excellence
• Implementing the solution
16-12
Transportation Factors
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Speed
Frequency
Dependability
Capability
Availability
Traceability
Cost
16-13
Retailing
Includes all the activities involved in
selling goods or services directly
to final consumers for personal,
nonbusiness use.
16-14
Retail Positioning Map
16-15
Department Store Model:
Strong Retail Brand Approach
16-16
Department Store Model:
The Showcase Store
16-17
Location Decision
• General business
districts
• Regional shopping
centers
• Community shopping
centers
• Strip malls
• Location within a larger
store
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Indicators of Sales Effectiveness
Number of people passing by
% who enter store
% of those who buy
Average amount
spent per sale
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e-Commerce Marketing Practices
• Pure-click
• Brick-andclick
• Brick-andmortar
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Buyer Expectations for e-commerce
• 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
15-21