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    Marketing Channel

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    sakshi tomar
    This document discusses marketing channels and channel design. It defines marketing channels as interdependent organizations that make products available for consumption. It also discusses push and pull strategies to market products through intermediaries or directly to consumers. The document outlines different channel levels from zero-level to three-level and decisions around channel design such as identifying alternatives and objectives. It also summarizes vertical and horizontal marketing systems as well as integrated multichannel systems.

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    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd

    Marketing Channel

    Uploaded by

    sakshi tomar
    213 views16 pages
    This document discusses marketing channels and channel design. It defines marketing channels as interdependent organizations that make products available for consumption. It also discusses push and pull strategies to market products through intermediaries or directly to consumers. The document outlines different channel levels from zero-level to three-level and decisions around channel design such as identifying alternatives and objectives. It also summarizes vertical and horizontal marketing systems as well as integrated multichannel systems.

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    This document discusses marketing channels and channel design. It defines marketing channels as interdependent organizations that make products available for consumption. It also discusses push and pull strategies to market products through intermediaries or directly to consumers. The document outlines different channel levels from zero-level to three-level and decisions around channel design such as identifying alternatives and objectives. It also summarizes vertical and horizontal marketing systems as well as integrated multichannel systems.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    213 views16 pages

    Marketing Channel

    Uploaded by

    sakshi tomar
    This document discusses marketing channels and channel design. It defines marketing channels as interdependent organizations that make products available for consumption. It also discusses push and pull strategies to market products through intermediaries or directly to consumers. The document outlines different channel levels from zero-level to three-level and decisions around channel design such as identifying alternatives and objectives. It also summarizes vertical and horizontal marketing systems as well as integrated multichannel systems.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 16

    Marketing Channels

    Marketing Channels

     Marketing channels—sets of interdependent


    organizations involved in the process of
    making a product or service available for use
    or consumption.
    Push and Pull Strategies

     Push strategy—uses the manufacturer’s


    sales force and trade promotion to induce
    intermediaries to carry, promote, and sell the
    products to end users.
     Pull strategy—manufacturer uses
    advertising and promotion to persuade
    consumers to ask intermediaries for the
    product, thus inducing the intermediaries to
    order it.
    Role of Marketing Channels

     Performs the work of moving products from


    producers to consumers, overcoming time,
    place, and possession gaps.
     Forward flow functions
     Backward flow functions
     Both directions
    Commonalities Among All
    Channel Functions
     They use up scarce resources.
     They can often be performed better through
    specialization.
     They can be shifted among channel
    members.
    Channel Levels

     Zero-level channel
     One-level channel
     Two-level channel
     Three-level channel
    Channel-Design Decisions

     Analyze customers’ desired service output


    levels
     Establish objectives and constraints
     Identify major channel alternatives
     Evaluate the major alternatives
    Analyzing Customers’
    Desired Service Output
    Levels
     Lot size

     Waiting and delivery time


     Spatial convenience
     Product variety
     Service backup
    Establishing Objectives and
    Constraints
     State channel objectives in terms of targeted
    service output levels.
     Objectives vary with product characteristics.
     Environmental factors:
     Competitors’ channels
     Economic conditions
     Legal regulations and restrictions
    Identifying Major Channel
    Alternatives
     Types of intermediaries  Terms and
     Merchants responsibilities of
     Facilitators channel members
     Number of  Price policy
    intermediaries  Conditions of sale
     Exclusive  Distributors’ territorial
    rights
     Selective
     Mutual services and
     Intensive
    responsibilities
    Evaluating the Major
    Alternatives
     Determine whether own sales force or a
    sales agency will produce more sales.
     Estimate the costs of selling different
    volumes through each channel.
    Channel-Management
    Decisions
     Selecting channel members
     Training and motivating channel members
     Evaluating channel members
     Modifying channel arrangements
    Channel Integration and
    Systems
     Vertical marketing system
     Horizontal marketing system
     Multichannel marketing system
    Vertical Marketing System
    (VMS)
     Producer, wholesaler(s), and retailer(s) acting
    as a unified system.
     Types:
     Corporate VMS
     Administered VMS
     Contractual VMS
     Wholesaler-sponsored voluntary chains
     Retailer cooperatives
     Franchise organizations
    Horizontal Marketing
    Systems
     Two or more unrelated companies put
    together resources or programs to exploit an
    emerging marketing opportunity.
    Integrated Multichannel
    Marketing Systems
     Multichannel marketing—a single firm uses two or
    more marketing channels to reach one or more
    customer segments.
     Integrated marketing channel system—the
    strategies and tactics of selling through one channel
    reflect the strategies and tactics of selling through
    other channels.
     Benefits:
     Increased market coverage
     Lower channel costs
     More customized selling

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