3. Marketing Channel
The particular set of interdependent
organizations involved in the
process of making a product or
service available for use or
consumption.
5. Push strategy
uses the manufacturer’s sales force, trade promotion
money, and other means to induce intermediaries to
carry, promote, and sell the product to end users.
uses advertising, promotion, and other forms of
communication to persuade consumers to demand
the product from intermediaries.
Pull strategy
13. Channel Member Functions
Gather information
Develop and disseminate persuasive communications
Reach agreements on price and terms
14. Channel Member Functions
Gather information
Develop and disseminate persuasive communications
Reach agreements on price and terms
Acquire funds to finance inventories
15. Channel Member Functions
Gather information
Develop and disseminate persuasive communications
Reach agreements on price and terms
Acquire funds to finance inventories
Assume risks
16. Channel Member Functions
Gather information
Develop and disseminate persuasive communications
Reach agreements on price and terms
Acquire funds to finance inventories
Assume risks
Provide for storage
17. Channel Member Functions
Gather information
Develop and disseminate persuasive communications
Reach agreements on price and terms
Acquire funds to finance inventories
Assume risks
Provide for storage
24. Designing a
Marketing Channel System
Analyze customer needs
Evaluate major channel alternatives
Identify major channel alternatives
Establish channel objectives
32. Designing a
Marketing Channel System
Identify major channel alternatives
Types of
intermediaries
Number of
intermediaries
33. Designing a
Marketing Channel System
Identify major channel alternatives
Types of
intermediaries
Number of
intermediaries
Terms and
responsibilities
38. Designing a
Marketing Channel System
Identify major channel alternatives
Types of
intermediaries
Number of
intermediaries
Terms and
responsibilities
40. Designing a
Marketing Channel System
Terms and
responsibilities
Price policy
Conditions of sale
Distributor’s territorial rights
Mutual services and responsibilities
45. Channel Integration & Systems
Vertical marketing
systems
Horizontal
marketing systems
Multichannel
systems
46. Channel Integration & Systems
Vertical marketing
systems
Horizontal
marketing systems
Multichannel
systems
• Corporate VMS
• Administered VMS
• Contractual VMS
47. ■ Channel conflict occurs when one
member’s actions prevent another
channel from achieving its goal.
■ Types of channel conflict
– Vertical
– Horizontal
– Multichannel
48. Causes of channel conflict
Goal incompatibility
Unclear roles and rights
Differences in perception
Intermediaries’ dependence on the manufacturer
49. Strategies for Managing Channel Conflict
■ Adoption of
superordinate goals
■ Exchange of
employees
■ Joint membership
in trade
associations
■ Cooptation
■ Diplomacy
■ Mediation
■ Arbitration
■ Legal recourse