1. Copyright © 2016 Pearson Education, Inc. 17-1 Chapter 17 Designing And Managing Integrated Marketing Channels

2. Copyright © 2016 Pearson Education, Inc. 17-2 Marketing Channels and Value Networks Marketing channels –Sets of interdependent organizations participating in the process of making a product or service available for use or consumption –Intermediaries: merchants, agents, and facilitators

3. Copyright © 2016 Pearson Education, Inc. 17-3 Marketing Channels and Value Networks A marketing channel system –The particular set of marketing channels a firm employs –Push vs. pull strategy

4. Copyright © 2016 Pearson Education, Inc. 17-4 Marketing Channels and Value Networks Multichannel marketing –Using two or more marketing channels to reach customer segments in one market area –Omnichannel marketing –Integrated marketing channel system

5. Copyright © 2016 Pearson Education, Inc. 17-5 Marketing Channels and Value Networks Value network –A system of partnerships and alliances that a firm creates to source, augment, and deliver its offerings –Demand chain planning

6. Copyright © 2016 Pearson Education, Inc. 17-6 Marketing Channels and Value Networks The digital channels revolution –Customer support in store/online/phone –Check online for product availability at local stores –Order product online to pick up at store –Return a product purchased online to a nearby store

7. Copyright © 2016 Pearson Education, Inc. 17-7 The Role of Marketing Channels Channel functions and flows

8. Copyright © 2016 Pearson Education, Inc. 17-8 The Role of Marketing Channels Channel levels –Zero-level channel (direct) –One/two/three-level channels (intermediaries) –Reverse-flow channels Service sector channels

9. Copyright © 2016 Pearson Education, Inc. 17-9 Figure 17.3 Consumer/Industrial Marketing Channels

10. Copyright © 2016 Pearson Education, Inc. 17-10 Channel-Design Decisions Identifying major channel alternatives Types of intermediaries Number of intermediaries Terms/responsibilities of channel members

11. Copyright © 2016 Pearson Education, Inc. 17-11 Identifying major channel alternatives Number of intermediaries –Exclusive distribution –Selective distribution –Intensive distribution

12. Copyright © 2016 Pearson Education, Inc. 17-12 Training and Motivating Channel Members Channel partnerships and ECR practices –Demand-side management –Supply-side management –Enablers and integrators

13. Copyright © 2016 Pearson Education, Inc. 17-13 Channel Integration and Systems Conventional marketing channel Vertical marketing systems Horizontal marketing systems

14. Copyright © 2016 Pearson Education, Inc. 17-14 Vertical Marketing Systems Corporate VMS Administered VMS Contractual VMS –Wholesaler-sponsored voluntary chains –Retailer cooperatives –Franchise organizations New competition in retailing

15. Copyright © 2016 Pearson Education, Inc. 17-15 E-Commerce Marketing Practices E-commerce –Uses a Web site to transact or facilitate the sale of products and services online Pure-click vs. brick-and-click companies

16. Copyright © 2016 Pearson Education, Inc. 17-16 M-Commerce Marketing Practices Mobile channels and media can keep consumers as connected and interacting with a brand as they choose –Advertising and promotion –Geofencing Privacy issues

17. Copyright © 2016 Pearson Education, Inc. 17-17 Conflict, Cooperation, and Competition Channel conflict –Generated when one channel member’s actions prevent another channel member from achieving its goal Channel coordination –Occurs when channel members are brought together to advance the goals of the channel instead of their own potentially incompatible goals

18. Copyright © 2016 Pearson Education, Inc. 17-18 Conflict, Cooperation, and Competition Causes of channel conflict Goal incompatibility Unclear roles and rights Differences in perception Intermediaries’ dependence on manufacturer