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Chapter Questions

What is a marketing channel system and valuenetwork?

What work do marketing channels perform?

What decisions do companies face indesigning, managing, and integrating their

channels?

What key issues do marketers face with e-

commerce and m-commerce?

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What is a Marketing Channel?

A marketing channelsystem is the

particular set of interdependent

organizations involved in the process of

making a product or service available foruse or consumption.

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Intermediaries

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Channels and

Marketing Decisions

A push strategy uses the manufacturerssales force, trade promotion money, andother means to induce intermediaries to

carry, promote, and sell the product to endusers

A pull strategy uses advertising, promotion,and other forms of communication to

persuade consumers to demand the productfrom intermediaries

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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

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Figure 13.1 Marketing Flows

in the Marketing Channel

for Forklift Trucks

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Marketing Channel Levels

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Figure 13.2 Consumer Markets

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Figure 13.2 Industrial Markets

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Reverse-Flow 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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Identifying Channel Alternatives

Types of intermediaries

Number of intermediaries

Terms and responsibilities

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Number of Intermediaries

Exclusive

Selective

Intensive

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Terms and Responsibilities

of Channel Members

Price policy

Condition of sale

Distributors territorial rights

Mutual services and responsibilities

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Figure 13.3 The Value-Adds versus

Costs of Different Channels

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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

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Channel Integration and Systems

Vertical marketing

systems

Corporate VMS

Administered VMS Contractual VMS

Horizontal

marketing systems

Multichannel

systems

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Integrated Marketing Channel

System

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Channel Conflict

What types of conflict arise in channels?

What causes conflict?

What can marketers do to resolve it?

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Causes of Channel Conflict

Goal incompatibility

Unclear roles and rights

Differences in perception

Intermediaries dependence on manufacturer

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E-Commerce

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Pure-click

Brick-and-click

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M-Commerce

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For Review

What is a marketing channel system and valuenetwork?

What work do marketing channels perform?

What decisions do companies face indesigning, managing, and integrating their

channels?

What key issues do marketers face with e-

commerce and m-commerce?

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 13-26