Chapter Nine Marketing Channels and Channel Mapping

Marketing Channels and Channel Mapping Marketing channel performance Alternative marketing channels Marketing channels that improve customer value Marketing channels and competitive advantage Profit impact of alternative marketing channels

Figure 9-1 Channel Map for an Electronic Components Company A CHANNEL MAP is a diagram of the types of purchase points a business uses. Figure 9-1 Channel Map for an Electronic Components Company

Marketing Channels and Channel Strategy What are Marketing Channels? What types of Marketing Channels exist? Direct Indirect Mixed What is the primary objective of a Marketing Channel? What three areas of performance will the choice of channel impact? Customer Value Sales Revenues Profitability How can Marketing Channels serve as a source of Competitive Advantage?

Marketing Channel Performance Customer Reach (Volume) Operating Efficiency (Cost to Serve) Service Quality (Retention)

Alternative Channel Systems Direct Channel Systems Mixed Channel Systems Indirect Channel Systems Channel Intermediaries Target Market Customers Which Channel System is most preferred by firms?

Direct Channel Systems Direct Sales Online Marketing Direct Marketing Tele-Marketing Reps/Agents Consumer Markets

Indirect Channel Systems Wholesalers Indirect Channel Systems Reps/Agents Consumer Markets Retailers Why do firms use Indirect Channel Systems? When is it appropriate to use Mixed Channel Systems?

Alternative B2B Marketing Channel Figure 9-12 Alternative B2B Marketing Channels

Channel Systems That Build Customer Value How does a channel system enhance customer value? Product Benefits Customer Value Service Benefits Price Non-price Costs Brand Benefits

Building Value Delivering Product Benefits Delivering Service Benefits Product quality Product assortment Product form Delivering Service Benefits After-sale services Availability/delivery Transaction services Improving Cost Efficiency i.e., making a product readily available

Channel Systems and Competitive Advantage Sales force advantage Sales productivity Distribution advantage

Distribution Advantage Figure 9-20 Channel Margin vs. Channel Marketing Expenses

Review Channel mapping Marketing channel performance Alternative marketing channels Marketing channels that improve customer value Marketing channels and competitive advantage Profit impact of alternative marketing channels

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