1. Designing and Managing Integrated Marketing Channels Chapter 15

2. Defined Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 2 of 36 Sets of interdependent organizations participating in the process of making a product or service available for use or consumption. Marketing Channels

3. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 3 of 36 Reducing no. of contacts using Intermediary = Customer = Manufacturer A. Number of contacts without a distributor M x C = 3 X 3 = 9 13 2 4 5 6 7 8 9

4. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 4 of 36 Reducing no. of contacts using Intermediary = Distributor = Customer = Manufacturer B. Number of contacts with a distributor M x C = 3 + 3 = 6 Store12 3 4 5 6

5. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 5 of 36 Distribution Systems Conventional Marketing Systems Vertical Marketing Systems Horizontal Marketing Systems Multi/Hybrid Marketing Systems

6. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 6 of 36 Conventional Marketing Channel Problem Separate objectives Maximize its own profit No channel members has control over others e.g., BAT, Uniliver Bangladesh, Square Products Manufacturer Wholesaler Retailer Consumer

7. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 7 of 36 Vertical Marketing System Manufacturer Retailer Manufacturer Retailer Wholesaler Consumer

8. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 8 of 36 Marketing Channels Horizontal Marketing System Two or More unrelated Companies at One Channel Level Join Together to Follow a New Marketing Opportunity. Example: Banks in Grocery Stores Doctor and medicine Hybrid Marketing System A Single Firm Sets Up Two or More Marketing Channels to Reach One or More Customer Segments. Example: Grameenphone

9. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 9 of 36 Food for Thought Why do various organizations follow different types of Marketing Channels?

10. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 10 of 36 Number of Intermediaries Exclusive Distribution Selective Distribution Intensive Distribution

11. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 11 of 36 Evaluating Channel Alternatives Economic Criteria $4.07 (Face-to-Face Transaction) $0.54 (Phone Transaction) $0.27 (ATM Transaction) $0.01 (Online Transaction)

12. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 12 of 36 Figure 15.4 Value-Adds vs. Costs of Different Channels

13. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 13 of 36 Conflict, Cooperation & Competition Channel Conflict Channel Coordination

14. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 14 of 36 E-Commerce Marketing Practices Pure-Click Firms B2B E-Commerce Brick-and-Click Firms