MARKETING MANAGEMENT 14 th edition 15 Designing and Managing Integrated Marketing Channels KotlerKeller

How a Marketing Intermediary Reduces the Number of Channel Transactions CHPT: 15&16-2

Contact Financing Information Risk Taking Promotion Matching Negotiation Physical Distribution Physical Distribution These Functions Should be Assigned to the Channel Member Who Can Perform Them Most Efficiently and Effectively to Provide Satisfactory Assortments of Goods and Services to Target Customers. Distribution Channel Functions CHPT: 15&16-3

M M W W J J R R C C M M W W R R C C M M R R C C M M C C Channel 1 Channel 2 Channel 3 Channel 4 Channel Level - Each Layer of Marketing Intermediaries that Perform Some Work in Bringing the Product and its Ownership Closer to the Final Buyer. Number of Channel Levels Direct Channel Indirect Channel CHPT: 15&16-4

Channel Behavior & Conflict The channel will be most effective when: –each member is assigned tasks it can do best. –all members cooperate to attain overall channel goals and satisfy the target market. When this doesn’t happen, conflict occurs: –Horizontal Conflict occurs among firms at the same level of the channel, i.e retailer to retailer. –Vertical Conflict occurs between different levels of the same channel, i.e. wholesaler to retailer. For the channel to perform well, each channel member’s role must be specified and conflict must be managed. CHPT: 15&16-5

Conventional Marketing Channel vs. Vertical Marketing System Conventional Marketing Channel Vertical Marketing System Manufacturer Retailer Manufacturer Retailer Wholesaler Manufacturer Wholesaler Retailer Consumer CHPT: 15&16-6

Corporate Common Ownership at Different Levels of the Channel i.e. Sears Contractual Contractual Agreements Among Channel Members Administered Leadership is Assumed by One or a Few Dominant Members i.e. Kraft Degree of Direct Control Types of Vertical Marketing Systems CHPT: 15&16-7

Contractual VMS Contractual VMS Retailer Cooperatives Retailer Cooperatives Franchise Organizations Franchise Organizations Wholesaler Sponsored Voluntary Chain Wholesaler Sponsored Voluntary Chain Service-Firm- Sponsored Franchise System Service-Firm- Sponsored Franchise System Manufacturer- Sponsored Wholesaler Franchise System Manufacturer- Sponsored Wholesaler Franchise System Manufacturer- Sponsored Retailer Franchise System Manufacturer- Sponsored Retailer Franchise System Vertical Marketing Systems (VMS) Vertical Marketing Systems (VMS) Corporate VMS Corporate VMS Administered VMS Administered VMS Types of Vertical Marketing Systems CHPT: 15&16-8

Analyzing Consumer Service Needs Setting Channel Objectives & Constraints Exclusive Distribution Selective Distribution Intensive Distribution Identifying Major Alternatives Evaluating the Major Alternatives Designing International Distribution Channels Channel Design Decisions CHPT: 15&16-9

MARKETING MANAGEMENT 14 th edition 16 Managing Retailing and Wholesaling KotlerKeller

What is Retailing? Includes all the activities Involved in Selling Goods or Services Directly to Final Consumers for Their Personal, Nonbusiness Use. CHPT: 15&16-11

Retailing Retailing can be done in stores (store retailing) or out of a store (nonstore retailing) such as: –Direct mail, –Catalogs, –Telephone, –Home shopping shows, –Internet. CHPT: 15&16-12

Amount of Service Self-Service, Limited-Service and Full-Service Retailer Amount of Service Self-Service, Limited-Service and Full-Service Retailer Product Line Length and Breadth of the Product Assortment Product Line Length and Breadth of the Product Assortment Relative Prices Pricing Structure that is Used by the Retailer Relative Prices Pricing Structure that is Used by the Retailer Retail Organizations Independent, Corporate, or Contractual Ownership Organization Classification of Retailing CHPT: 15&16-13

Self-ServiceRetailer Provide Few or No Services to Shoppers i.e. Migros Limited-ServiceRetailers Provide Only a Limited Number of Services to Shoppers i.e. Çarşı Full-ServiceRetailers Retailers that Provide a Full Range of Services to Shoppers i.e. Arçelik Classification of Retailing: Amount of Service CHPT: 15&16-14

Specialty Stores Department Stores Supermarkets Convenience Stores Superstores Discount Stores Narrow Product Line, Deep Assortment i.e. Deriden, Timberland Wide Variety of Product Lines i.e. Clothing, Yeni Karamürsel, Çarşı Wide Variety of Food, Laundry, & Household Products i.e. Canerler Limited Line of High-Turnover Convenience Goods i.e. Büfeler, bakkallar Large Assortment of Routinely Purchased Food & Nonfood Products i.e. Real, Migros Standard Merchandise at Lower Prices i.e. Ulus, Kızılay mağazaları Off-Price Retailers Changing Collection of Higher-Quality Goods at a Reduced Price i.e. Outlet Warehouse Clubs Limited Selection of Brand-Name Grocery Items, Appliances, Etc. i.e. Metro Classification of Retailing: Product Line Store Description CHPT: 15&16-15

Leased (Tepe Home) Franchise (North Shield) Independent Retailers Membership Group (Fabrika, Çarşı, Network. Beymen) Classification of Retailing: Retail Organization Corporate Chain (TGI) CHPT: 15&16-16