kotler mm14 ch15 dppt

Kotler • KellerPhillip Kevin Lane

Marketing Management • 14e

Designing and Managing Integrated Marketing Channels

Chapter 15

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 3 of 36

Discussion Questions

1. What is a marketing channel system and value network?

2. What work do marketing channels perform?

3. How should channels be designed?


Discussion Questions

4. What decisions do companies face in managing their channels?

5. How should companies integrate channels and manage channel conflict?

6. What are the key issues with e-commerce and m-commerce?

Defined


Sets of interdependent organizations participating in the process of making a product or service available for use or consumption.

Marketing Channels


Intermediaries

Merchants

Agents

Facilitators


Importance of Channels

Ultimate Selling Price

30% - 50% Channel Members

5% - 7%Advertising


Importance of Channels

Push strategy

Pull strategy


Multichannel Marketing (Hybrid)

Sales Force

Internet

Telemarketing

Direct Mail


Value Networks


Role of Marketing Channels

ContactsExperienceSpecializationScale of operation

Facilitators

Merchants

Agents


Channel Functions and Flows TimePlace Possession

Transportation, communication

Ordering, payment

Forward Flow

Backward Flow

Information, negotiation, finance, risk taking


Figu

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15.1 Five Marketing Flows in the

Marketing Channel


Channel LevelsZero-level (Direct marketing) channel


Figu

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15.2 Channel Levels – Consumer


Figu

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15.2

Channel Levels – B2B


Channel-Design Decisions

Customer wants and needs

Objectives and constraints

Identifying and evaluate alternatives


Customer Needs and Wants

Price

Product Assortment

Convenience

Shopping Goals•Economic•Social•Experiential


Figu

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15.3 What do European Consumers Value


Channels Service Outputs

Lot Size

Waiting/Deliver Time

Product Variety

Service Backup

Spatial Convenience


Objectives and Constraints

Service Costs

Bulky Products

Nonstandard Products

Installation / Maintenance


Identify Channel AlternativesSales Force

Distributors Direct Mail

Telemarketing

Channel Alternatives•Type of Intermediaries•Number of Intermediaries•Terms and Responsibilities


Identify Channel Alternatives

Channel Alternatives•Type of Intermediaries

•Number of Intermediaries

•Terms and Responsibilities


Types of Intermediaries

Ray’s Cars

OEMs

Dealers

Direct to Consumers

Satellite Radio Manufacturer


Number of Intermediaries

Exclusive Distribution

Selective Distribution

Intensive Distribution


Evaluating Channel AlternativesEconomic Criteria

$4.07(Face-to-Face Transaction)

$0.54(Phone Transaction)

$0.27(ATM Transaction)

$0.01(Online Transaction)


Figu

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15.4 Value-Adds vs. Costs of

Different Channels


Figu

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15.5 Break-Even Cost Chart: Company

Sales Force vs. Sales Agency


Channel-Management Decisions

Selecting Channel Members

Training and Motivating

EvaluatingModifying


Channel Integration and Systems

Vertical Marketing Systems

Horizontal Marketing SystemsIntegrating Multichannel

Marketing Systems

Disney

Blockbuster

Disney Store

Best Buy

.com

Amazon


Figu

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15.6 The Hybrid Grid


Conflict, Cooperation & Competition

Channel Conflict

Channel Coordination


Channel Conflict

Horizontal Channel Conflict

Vertical Channel Conflict

Multichannel Conflict


Managing Channel Conflict

Employee Exchange

Mediation

Dual Compensation

Legal Recourse


E-Commerce Marketing Practices

Pure-Click Firms

B2B E-Commerce

Brick-and-Click Firms


M-Commerce Marketing Practices

Text Promotions

M-Commerce

GPS Features

kotler mm14 ch15 dppt

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