Upload
ankit-chauhan
View
2.062
Download
0
Tags:
Embed Size (px)
DESCRIPTION
marketing channels
Citation preview
Think Efficiency and Effectiveness
Add a Distributor
Marketing Channel Defined
A set of interdependent organizations involved in the process of making a product or service available for use or consumption.
III. Intermediaries
A. Types Retailer Wholesaler Agent
B. Value Created by Intermediaries Improve exchange efficiency Perform marketing functions Eliminate assortment / quantity discrepancies
Types of Intermediaries
How intermediaries improve exchange efficiencies
Channel Structure Decisions
Slide 15-15
Examples of direct and indirect channels
Gatekeeper Important asset of marketing strategy
Differentiator Difficult to replicate
End-user satisfaction Overall brand image
Awareness of channel importance is low Opportunity for competitive advantage
Difficult to create and maintain channel Difficult and costly to change Right the first time
Importance of Studying Marketing Channels
Channel Members
Manufacturers Intermediaries
Retailers Wholesalers
End-users
Channel Analysis Framework
CHANNEL DESIGNSegmentation
Channel StructureSplitting the WorkloadDegree of Commitment
Gap Analysis
CHANNEL IMPLEMENTATION
Channel Power Channel Conflict
Manage/Defuse Conflict
Channel Coordination
Segmentation
Splitting market into groups of end-user
Segmentation
Example: Segments of book end-users Recreational readers University students
• Convenience-oriented• Price-oriented
Selecting Target Segments
Those we can serve most profitably Restrictions
Managerial bounds Environmental bounds
• Legal Competitive benchmarks
Channel Structure
1. Types of channel members
2. Identities of specific channel members
3. Channel intensity: number of each type
Gap Analysis The difference between
optimal and actual channels
Demand side gaps Service output demands are
not being met Undersupplied Oversupplied
Supply side gaps At least one flow is costing
too much Lack of expertise Waste
Channel Power
Ability to control other channel members Necessary to implement channel design May be used to optimize channel to
benefit of all channel members
Channel Conflict
Actions of channel members prevent channel from achieving its goals
Goal conflict Domain conflict Perceptual conflict
Manage/Diffuse Conflict
Identify sources of conflict Poor channel design Poor performance
Take action Exercise channel power
Channel Coordination
Result of Channel designed to meet service output
demands of target end-user segments
Ongoing process
Insights for Specific Channel Institutions
Retailers Wholesalers Logistics firms Supply chain issues Franchises