Chapter 15 Designing and Managing Integrated

Phillip

Kevin Lane

Kotler • Keller Marketing Management • 14e

Designing and Managing Integrated Marketing Channels

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?

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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 ecommerce and m-commerce?

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

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Intermediaries

Merchants

Agents

Facilitators Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

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Importance of Channels Ultimate Selling Price

30% - 50% Channel Members

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5% - 7% Advertising

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Importance of Channels

Push strategy

Pull strategy Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

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Multichannel Marketing (Hybrid) Internet

Sales Force

Telemarketing

Direct Mail Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

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Value Networks

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Role of Marketing Channels Merchants

Agents

Contacts Experience Specialization Scale of operation

Facilitators Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

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Channel Functions and Flows

Time Place Possession

Forward Flow Transportation, communication

Information, negotiation, finance, risk taking

Backward Flow Ordering, payment Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

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Five Marketing Flows in the Marketing Channel

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Channel Levels Zero-level (Direct marketing) channel

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Channel Levels – Consumer

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Channel Levels – B2B

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Channel-Design Decisions Customer wants and needs Objectives and constraints Identifying and evaluate alternatives

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Customer Needs and Wants

Price

Product Assortment

Convenience Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Shopping Goals • Economic • Social • Experiential Slide 18 of 36

What do European Consumers Value

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Channels Service Outputs Spatial Convenience

Waiting/ Deliver Time

Service Backup

Product Variety Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Lot Size Slide 20 of 36

Objectives and Constraints Service

Costs

Nonstandard Products

Bulky Products

Installation / Maintenance Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

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Identify Channel Alternatives Sales Force

Distributors

Direct Mail

Channel Alternatives Telemarketing Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

• Type of Intermediaries • Number of Intermediaries • Terms and Responsibilities Slide 22 of 36

Identify Channel Alternatives

Channel Alternatives • Type of Intermediaries • Number of Intermediaries • Terms and Responsibilities Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

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Types of Intermediaries Satellite Radio Manufacturer

Dealers

OEMs

Ray’s Cars

Direct to Consumers Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

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Number of Intermediaries Exclusive Distribution

Intensive Distribution

Selective Distribution

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Evaluating Channel Alternatives Economic Criteria

$4.07 (Face-to-Face Transaction)

$0.27 (ATM Transaction)

$0.54

$0.01

(Phone Transaction)

(Online Transaction)

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Value-Adds vs. Costs of Different Channels

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Break-Even Cost Chart: Company Sales Force vs. Sales Agency

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Channel-Management Decisions Training and Motivating

Selecting Channel Members

Modifying Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Evaluating Slide 29 of 36

Channel Integration and Systems Horizontal Marketing Systems Integrating Multichannel Marketing Systems

Best Buy

Blockbuster

Disney Amazon

.com

Disney Store

Vertical Marketing Systems Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

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The Hybrid Grid

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Conflict, Cooperation & Competition Channel Coordination

Channel Conflict

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Channel Conflict Multichannel Conflict Vertical Channel Conflict

Horizontal Channel Conflict

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Managing Channel Conflict Employee Exchange

Dual Compensation

Legal Recourse Mediation

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E-Commerce Marketing Practices

Brick-and-Click Firms

B2B E-Commerce

Pure-Click Firms Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

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M-Commerce Marketing Practices M-Commerce

Text Promotions

GPS Features Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

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