Designing and Managing Integrated Marketing Channels Marketing Management, 13 th ed 15.

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Presentation transcript:

Designing and Managing Integrated Marketing Channels Marketing Management, 13 th ed 15

Copyright © 2009 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 © 2009 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 © 2009 Pearson Education, Inc. Publishing as Prentice Hall 15-5 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

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 15-6 Figure 15.2 Marketing Channel Flows

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 15-7 Figure 15.3 Consumer Marketing Channels

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 15-8 Figure 15.3 Industrial Marketing Channels

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 15-9 Number of Intermediaries Exclusive Selective Intensive

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Terms and Responsibilities of Channel Members Price policy Condition of sale Distributors’ territorial rights Mutual services and responsibilities

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Causes of Channel Conflict Goal incompatibility Unclear roles and rights Differences in perception Intermediaries’ dependence on the manufacturer