Chapter 15 - Designing and managing integrated marketing channels. In this chapter, we will address the following questions: What is a marketing channel system and value network? What work do marketing channels perform? How should channels be designed? What decisions do companies face in managing their channels? How should companies integrate channels and manage channel conflict? What are the key issues with e-commerce and m-commerce?
Phillip Kevin Lane Kotler • Keller Marketing Management • 14e Ch r e t p a Designing and Managing Integrated Marketing Discussion Questions What is a marketing channel system and value network? What work marketing channels perform? How should channels be designed? Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide of 36 Discussion Questions What decisions companies face in managing their channels? How should companies integrate channels and manage channel conflict? What are the key issues with ecommerce and m-commerce? Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide of 36 d e in f e D Marketing Channels Sets of interdependent organizations participating in the process of making a product or service available for use or consumption Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide of 36 Intermediaries Merchants Agents Facilitators Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide of 36 Importance of Channels Ultimate Selling Price 30% - 50% Channel Members Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 5% - 7% Advertisin g Slide of 36 Importance of Channels Push strategy Pull strategy Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide of 36 Multichannel Marketing (Hybrid) Internet Sales Force Telemarketi ng Direct Mail Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide of 36 Value Networks Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 10 of 36 Identify Channel Alternatives Sales Force Distributors Direct Mail Channel Alternatives Telemarketing Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall •Type of Intermediaries •Number of Intermediaries Slide 22 of 36 Identify Channel Alternatives Channel Alternatives •Type of Intermediaries ãNumber of Intermediaries Copyright â 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 23 of 36 Types of Intermediaries Satellite Radio Manufacturer Dealers OEMs Ray’s Cars Direct to Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 24 of 36 Number of Intermediaries Exclusive Distribution Intensive Distribution Selective Distribution Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 25 of 36 Evaluating Channel Alternatives Economic Criteria $4.07 (Face-to-Face Transaction) $0.27 (ATM Transaction) $0.54 $0.01 (Phone Transaction) (Online Transaction) Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 26 of 36 e r u g Fi 5.4 Value-Adds vs Costs of Different Channels Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 27 of 36 e r u g Fi 5.5 Break-Even Cost Chart: Company Sales Force vs Sales Agency Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 28 of 36 Channel-Management Decisions Training and Motivating Selecting Channel Members Modifying Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Evaluating Slide 29 of 36 Channel Integration and Systems Horizontal Marketing Systems Integrating Multichannel Marketing Systems Best Buy Blockbuster Disney Amazon com Disney Store Vertical Marketing Systems Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 30 of 36 e r u g Fi 5.6 The Hybrid Grid Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 31 of 36 Conflict, Cooperation & Competition Channel Coordination Channel Conflict Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 32 of 36 Channel Conflict Multichannel Conflict Vertical Channel Conflict Horizontal Channel Conflict Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 33 of 36 Managing Channel Conflict Employee Exchange Dual Compensation Legal Recourse Mediation Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 34 of 36 E-Commerce Marketing Practices Brick-and-Click Firms B2B E-Commerce Pure-Click Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 35 of 36 M-Commerce Marketing Practices M-Commerce Text Promotions GPS Features Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 36 of 36 ... 34 of 36 E-Commerce Marketing Practices Brick-and-Click Firms B2B E-Commerce Pure-Click Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 35 of 36 M-Commerce Marketing. .. u g Fi 5.1 Five Marketing Flows in the Marketing Channel Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 13 of 36 Channel Levels Zero-level (Direct marketing) channel... Integration and Systems Horizontal Marketing Systems Integrating Multichannel Marketing Systems Best Buy Blockbuster Disney Amazon com Disney Store Vertical Marketing Systems Copyright © 2012