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

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 15-2

Figure 15.1 Increasing Efficiency Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 15-3

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 15-4

Figure 15.2 Marketing Channel Flows Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 15-5

Figure 15.3 Consumer Marketing Channels Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 15-6

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

Number of Intermediaries Exclusive Selective Intensive Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 15-8

Terms and Responsibilities of Channel Members Price policy Condition of sale Distributors’ territorial rights Mutual services and responsibilities Video icon links to snippet on Hasbro’s product bundling for different channel members. Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 15-9

Causes of Channel Conflict Goal incompatibility Unclear roles and rights Differences in perception Intermediaries’ dependence on the manufacturer Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 15-10