Kotler Keller

Marketing Management 14e

Phillip

Kevin Lane

Designing and Managing Integrated Marketing Channels

Discussion Questions
1. What is a marketing channel system and value network? 2. What work do marketing channels perform? 3. How should channels be designed?

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Discussion Questions
4. What decisions do companies face in managing their channels? 5. How should companies integrate channels and manage channel conflict? 6. What are the key issues with ecommerce and m-commerce?

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Marketing Channels
Sets of interdependent organizations participating in the process of making a product or service available for use or consumption.

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Intermediaries

Merchants

Agents

Facilitators
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Importance of Channels
Ultimate Selling Price

30% - 50% Channel Members

5% - 7% Advertising

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Importance of Channels

Push strategy

Pull strategy
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Multichannel Marketing (Hybrid)

Internet

Sales Force

Telemarketing

Direct Mail
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Value Networks

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Role of Marketing Channels

Merchants

Agents

Contacts Experience Specialization Scale of operation

Facilitators
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Channel Functions and Flows

Forward Flow
Transportation, communication

Time Place Possession

Information, negotiation, finance, risk taking

Backward Flow
Ordering, payment
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Five Marketing Flows in the Marketing Channel

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Channel Levels
Zero-level (Direct marketing) channel

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Channel Levels Consumer

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Channel Levels B2B

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Channel-Design Decisions
Customer wants and needs

Objectives and constraints

Identifying and evaluate alternatives

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Customer Needs and Wants

Price Product Assortment

Convenience
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Shopping Goals Economic Social Experiential

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What do European Consumers Value

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Channels Service Outputs

Spatial Convenience Waiting/ Deliver Time

Service Backup

Product Variety
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Lot Size
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Objectives and Constraints

Service Costs
Nonstandard Products

Bulky Products

Installation / Maintenance
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Identify Channel Alternatives

Sales Force

Distributors

Direct Mail

Channel Alternatives
Telemarketing
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Type of Intermediaries Number of Intermediaries Terms and Responsibilities

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Identify Channel Alternatives

Channel Alternatives
Type of Intermediaries
Number of Intermediaries Terms and Responsibilities
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Types of Intermediaries
Satellite Radio Manufacturer OEMs

Dealers

Rays Cars

Direct to Consumers
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Number of Intermediaries
Exclusive Distribution

Intensive Distribution

Selective Distribution

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Evaluating Channel Alternatives

Economic Criteria

$4.07
(Face-to-Face Transaction)

$0.27
(ATM Transaction)

$0.54
(Phone Transaction)
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$0.01
(Online Transaction)
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Value-Adds vs. Costs of Different Channels

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Break-Even Cost Chart: Company Sales Force vs. Sales Agency

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Channel-Management Decisions
Training and Motivating

Selecting Channel Members

Modifying
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Evaluating
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Channel Integration and Systems

Horizontal Marketing Systems Integrating Multichannel Marketing Systems

Best Buy

Blockbuster

Disney
Amazon

.com

Disney Store

Vertical Marketing Systems

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The Hybrid Grid

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Conflict, Cooperation & Competition

Channel Coordination

Channel Conflict

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Channel Conflict
Multichannel Conflict Vertical Channel Conflict

Horizontal Channel Conflict

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Managing Channel Conflict

Employee Exchange

Dual Compensation

Legal Recourse Mediation

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E-Commerce Marketing Practices

Brick-and-Click Firms

B2B E-Commerce

Pure-Click Firms
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M-Commerce Marketing Practices

M-Commerce

Text Promotions

GPS Features
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