Designing & Managing Integrated Marketing Channel
Indrawati, PhD
Holistic Marketing Dimensions
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Marketing Channels
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Sets of interdependent organizations participating in the process of making a product or service available for use or consumption.
Sell value, not price.
Establish channels for different target markets and aim for efficiency, control, and adaptability.
Integrate retailers, wholesalers, and logistical organizations to deliver value successfully to customers.
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Pepsi Co.
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Pepsi Distribution Channels
Intermediaries
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Merchants
Agents
Facilitators
Importance of Channels
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Multichannel Marketing (Hybrid)
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Sales Force
Internet
Telemarketing
Direct Mail
Value Network and Marketing-Channel System
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IBMs sales force sells to large accounts, outbound telemarketing sells to medium-sized accounts, direct mail sells to small accounts, retailers sell to still smaller accounts, and the Internet to sell specialty items.
Charles Schwab enables its customers to do transactions in branch offices, over the phone, or via the Internet.
Channel integration characteristics
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 of online and off-line purchases
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Push & Pull Strategies
persuades consumers to demand the product from intermediaries
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low brand loyaltyhigh brand loyalty
induce intermediaries to carry, promote, and sell the product to end users
Push & Pull Strategies
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A push strategy uses the manufacturers resources to induce intermediaries to carry, promote, and sell the product to end users. A push strategy is appropriate when there is low brand loyalty in a category, brand choice is made in the store, the product is an impulse item, and product benefits are well understood.
In a pull strategy the manufacturer persuades consumers to demand the product from intermediaries, thus inducing the intermediaries to order it. Pull strategy is appropriate when there is high brand loyalty and high involvement in the category, when consumers are able to perceive differences between brands, and when they choose the brand before they go to the store.
Value Networks
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A value network is a system of partnerships and alliances that a firm creates to source, augment, and deliver its offerings.It includes a firms suppliers and its suppliers suppliers, and its immediate customers and their end customers, as well as relationships with others such as university researchers and government approval agencies.
Role of Marketing Channels
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ContactsExperienceSpecializationScale of operation
Facilitators
Merchants
Agents Companies use intermediaries when they lack the financial resources to carry out direct marketing, when direct marketing is not feasible, and when they can earn more by doing so. The most important functions performed by intermediaries are information, promotion, negotiation, ordering, financing, risk taking, physical possession, payment, and title.
Role of Marketing Channels
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Companies use intermediaries when they lack the financial resources to carry out direct marketing, when direct marketing is not feasible, and when they can earn more by doing so. The most important functions performed by intermediaries are information, promotion, negotiation, ordering, financing, risk taking, physical possession, payment, and title.
Channel Functions
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Transportation, communication
Ordering, payment
Forward Flow
Backward Flow
Information, negotiation, finance, risk taking
Channel Functions
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1. Gather information about potential and current customers, competitors, and others
2. Develop and disseminate persuasive communications to stimulate purchasing
3. Reach agreements on price and other terms so that transfer of ownership or possession can be effected
4. Place orders with manufacturers5. Acquire funds to finance inventories at different levels in the
marketing channel6. Assume risk connected with carrying out channel work7. Provide for the successive storage and movement of physical
products8. Provide for buyers payment of their bills through banks and other
financial institutions9. Oversee actual transfer of ownership from one organization or
person to another
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Marketing Flows in the Marketing Channel for Forklift Trucks
Channel Levels Consumer
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Zero-level (Direct marketing) channel
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home parties
Channel Levels B2B
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Designing a channel system
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1. Analyzing customer needs
2. Establishing channel objectives
3. Identifying major channel alternatives
4. Evaluating major channel alternatives
Analyzing customer needs
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Price
Product Assortment
Convenience
Shopping Goals Economic Social Experiential
Channels Service Outputs
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Lot Size
Waiting/Deliver Time
Product Variety
Service Backup
Spatial Convenience
it easy for customers to purchase the product
units the channel permits a typical customer to purchase on one occasion
Channel Alternatives
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Sales Force
Distributors Direct Mail
Telemarketing
Channel Alternatives Type of Intermediaries Number of
Intermediaries Terms and
Responsibilities
Number of Intermediaries
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Exclusive Distribution
Selective Distribution
Intensive Distribution
limits the number of intermediaries
only some of the intermediaries willing to carry a particular product
many outlets as possible
Evaluating Channel Alternatives
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Economic Criteria
$4.07(Face-to-Face Transaction)
$0.54(Phone Transaction)
$0.27(ATM Transaction)
$0.01(Online Transaction)
The Value-Adds versus Costs of Different Channels
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Channel-Management Decisions
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Selecting Channel Members
Training and Motivating
Channel Integration and Systems
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Vertical Marketing Systems
Horizontal Marketing Systems
Integrating Multichannel Marketing Systems
Disney
Blockbuster
Disney Store
Best Buy
.com
Amazon
two or more unrelated companies put together resources or programs to exploit an emerging marketing opportunity
includes the producer, wholesaler(s), and retailer(s) acting as a unified system
the strategies and tactics of selling through one channel reflect the strategies and tactics of selling through one or more other channels
Managing Channel Conflict
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Employee Exchange
Mediation
Dual Compensation
Levels of Retail Service
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Self service
Self selection
Limited service
Full service
Non store Retailing
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Direct selling
Direct marketing
Automatic vending
Buying service
Retailers Marketing Decisions
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Target market
Product assortment
Procurement
Prices
Services
Store atmosphere
Store activities
Store experiences
Communications
Location
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Store Atmosphere and Experiences
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Keep shoppers in the store
Honor the transition zone
Dont make them hunt
Make merchandise available to the reach and touch
Note that men do not ask questions
Remember women need space
Make checkout easy
Increasing Sales in Retail Space
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Selling and promoting
Buying and assortment building
Bulk breaking
Warehousing
Transportation
Financing
Risk bearing
Market information
Management services and counseling
Wholesaling Functions
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Terima kasih
Thank you
LINK
http://www.youtube.com/watch?v=Tb8bF2hCyLw = brian McCharty
http://www.youtube.com/watch?v=rqXIwjD3Cso = Pepsi co
http://www.youtube.com/watch?v=17JMFvMmT3w = Channel distribution explanation
http://www.youtube.com/watch?v=yZC4neLax5o = Wallmart supply chain
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LINK
Jobber is a person who is a wholesaler basically, but is providing limited services too like financing, delivery, shelving etc.
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