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15
Designing and
Managing
Integrated Marketing
Channels
1
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-2
What is a Marketing Channel?
A marketing channel system is the
particular set of interdependent
organizations involved in the process of
making a product or service available for
use or consumption.
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-3
Channels and
Marketing Decisions
 A push strategy uses the manufacturer’s
sales force, trade promotion money, and
other means to induce intermediaries to
carry, promote, and sell the product to end
users
 A pull strategy uses advertising, promotion,
and other forms of communication to
persuade consumers to demand the product
from intermediaries
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 15-4
Figure 15.1 Increasing Efficiency
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-5
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
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-6
Table 15.1 Channel Member
Functions
 Gather information
 Develop and disseminate persuasive
communications
 Reach agreements on price and terms
 Acquire funds to finance inventories
 Assume risks
 Provide for storage
 Provide for buyers’ payment of their bills
 Oversee actual transfer of ownership
Figure 15.1 Marketing Flows
in the Marketing Channel
for Forklift Trucks
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-7
Figure 15.2 Consumer Markets
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-8
Figure 15.2 Industrial Markets
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-9
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-10
Number of Intermediaries
 Exclusive
 Selective
 Intensive
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-11
Channel-Management Decisions
 Selecting channel members
 Training channel members
 Motivating channel members
 Evaluating channel members
 Modifying channel members
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-12
Channel Conflict
 What types of conflict arise in channels?
 What causes conflict?
 What can marketers do to resolve it?
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-13
Causes of Channel Conflict
 Goal incompatibility
 Unclear roles and rights
 Differences in perception
 Intermediaries’ dependence on manufacturer

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kotler_mm_14e_15_ippt.ppt

  • 2. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-2 What is a Marketing Channel? A marketing channel system is the particular set of interdependent organizations involved in the process of making a product or service available for use or consumption.
  • 3. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-3 Channels and Marketing Decisions  A push strategy uses the manufacturer’s sales force, trade promotion money, and other means to induce intermediaries to carry, promote, and sell the product to end users  A pull strategy uses advertising, promotion, and other forms of communication to persuade consumers to demand the product from intermediaries
  • 4. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 15-4 Figure 15.1 Increasing Efficiency
  • 5. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-5 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
  • 6. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-6 Table 15.1 Channel Member Functions  Gather information  Develop and disseminate persuasive communications  Reach agreements on price and terms  Acquire funds to finance inventories  Assume risks  Provide for storage  Provide for buyers’ payment of their bills  Oversee actual transfer of ownership
  • 7. Figure 15.1 Marketing Flows in the Marketing Channel for Forklift Trucks Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-7
  • 8. Figure 15.2 Consumer Markets Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-8
  • 9. Figure 15.2 Industrial Markets Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-9
  • 10. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-10 Number of Intermediaries  Exclusive  Selective  Intensive
  • 11. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-11 Channel-Management Decisions  Selecting channel members  Training channel members  Motivating channel members  Evaluating channel members  Modifying channel members
  • 12. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-12 Channel Conflict  What types of conflict arise in channels?  What causes conflict?  What can marketers do to resolve it?
  • 13. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-13 Causes of Channel Conflict  Goal incompatibility  Unclear roles and rights  Differences in perception  Intermediaries’ dependence on manufacturer