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Integrated Marketing Channels Overview

This document discusses marketing channels and value networks. It covers topics such as intermediaries that participate in making products available, push vs pull strategies, multichannel and omnichannel marketing, value networks, digital channel revolutions, channel functions and flows, channel design decisions, evaluating channel alternatives, channel integration systems, e-commerce and m-commerce channels, and managing conflict and cooperation within channels.

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Rozan Farizqy
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156 views16 pages

Integrated Marketing Channels Overview

This document discusses marketing channels and value networks. It covers topics such as intermediaries that participate in making products available, push vs pull strategies, multichannel and omnichannel marketing, value networks, digital channel revolutions, channel functions and flows, channel design decisions, evaluating channel alternatives, channel integration systems, e-commerce and m-commerce channels, and managing conflict and cooperation within channels.

Uploaded by

Rozan Farizqy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

DESIGNING AND MANAGING

INTEGRATED MARKETING
CHANNELS
Chapter 17
Marketing Channels and Value Networks
Marketing channels
• Sets of interdependent organizations participating in the process of
making a product or service available for use or consumption

• Intermediaries: merchants, agents, and facilitators


Marketing Channels and Value Networks
• A marketing channel system
• The particular set of marketing channels a firm employs
• Push vs. pull strategy
• Multichannel marketing
• Using two or more marketing channels to reach customer
segments in one market area
• Omnichannel marketing
• Integrated marketing channel system
• Value network
• A system of partnerships and alliances that a firm creates to
source, augment, and deliver its offerings
• Demand chain planning
Marketing Channels and Value Networks
• The digital channels revolution
• Customer support in store/online/phone
• Check online for product availability at local stores
• Order product online to pick up at store
• Return a product purchased online to a nearby store
Marketing Channels
CHANNEL FUNCTIONS &
FLOWS
• Some function (physical, title, promotion) constitute a forward
flow of activity from the company to the customer.
• Other function (ordering and payment) constitute a backward
flow from customers to the company
• Still others (information, negotiation, finance, and risk taking)
occur in both directions.
CHANNEL FUNCTIONS &
FLOWS
CHANNEL-DESIGN DECISIONS
• Analyzing Customers’ Needs and Wants
*Lot size, waiting & delivery time, spatial convenience,
product variety, service backup.
• Establishing Objectives and Constraints
• Identifying Major Channel Alternatives
*Types of intermediaries, number of intermediaries
(exclusive, selective, intensive), terms and responsibilities of
channel members (price policy, condition of sale, distributor
territorial rights, mutual service & responsibilities)
• Evaluating the Major Alternatives
*Economic criteria, control and adaptive criteria.
The Value-Adds versus Costs of Different
Channels
Channel Integration and Systems
• Conventional marketing channel
• Vertical marketing systems
• Horizontal marketing systems
Vertical Marketing System
• Corporate VMS
• Administered VMS
• Contractual VMS
• Wholesaler-sponsored voluntary chains
• Retailer cooperatives
• Franchise organizations
• New competition in retailing
E-Commerce Marketing Channels
M-Commerce Marketing Channels
Conflict, Cooperation,and Competition
• Channel conflict
• Generated when one channel member’s actions prevent
another channel member from achieving its goal
• Channel coordination
• Occurs when channel members are brought together to
advance the goals of the channel instead of their own
potentially incompatible goals
Conflict, Cooperation,and Competition
• Causes of channel conflict

 Goal incompatibility
 Unclear roles and rights
 Differences in perception
 Intermediaries’ dependence on
manufacturer

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