Indrawati, PhD
Designing & Managing Integrated
Marketing Channel
Holistic Marketing Dimensions
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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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Sell value, not price.
Establish channels for
different target markets and aim for
efficiency, control, and adaptability.
Integrate retailers, wholesalers, and logistical
organizations to deliver value successfully
to customers.
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Pepsi Distribution Channels
Pepsi Co.
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Intermediaries
Merchants
Agents
Facilitators
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Importance of Channels
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Multichannel Marketing (Hybrid)
Internet
Sales Force
Telemarketing
Direct Mail
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Value Network and Marketing-Channel System
IBMs sales force sells to large accounts,
outbound telemarketing sells to medium-sized accounts,
direct mail sells to small accounts,
retailers sell to still smaller accounts, and
the Internet to sell specialty items.
Charles Schwab enables its customers to do transactions
in branch offices, over the phone, or via the Internet.
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Channel integration characteristics
Ability to order a product online and pick it up
at a convenient retail location.
Ability to return an online-ordered product to a
nearby store.
Right to receive discounts based on total of
online and off-line purchases
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Push & Pull Strategies
persuades consumers to
demand the product from
intermediaries
high brand loyalty
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induce intermediaries to
carry, promote, and sell the
product to end users
low brand loyalty
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Push & Pull Strategies
A push strategy uses the manufacturers resources to induce
intermediaries to carry, promote, and sell the product to end users.
A push strategy is appropriate when there is low brand loyalty in a
category, brand choice is made in the store, the product is an
impulse item, and product benefits are well understood.
In a pull strategy the manufacturer persuades consumers to
demand the product from intermediaries, thus inducing the
intermediaries to order it. Pull strategy is appropriate when there is
high brand loyalty and high involvement in the category, when
consumers are able to perceive differences between brands, and
when they choose the brand before they go to the store.
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Value Networks
A value network is a system of partnerships and
alliances that a firm creates to source, augment,
and deliver its offerings.
It includes a firms suppliers and its suppliers
suppliers, and its immediate customers and their
end customers, as well as relationships with
others such as university researchers and
government approval agencies.
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Role of Marketing Channels
Merchants
Contacts
Experience
Specialization
Scale of operation
Agents
Facilitators
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Companies use intermediaries when they lack
the financial resources to carry out direct
marketing, when direct marketing is not
feasible, and when they can earn more by
doing so. The most important functions
performed by intermediaries are information,
promotion, negotiation, ordering, financing,
risk taking, physical possession, payment, and
title.
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Role of Marketing Channels
Companies use intermediaries when they lack the
financial resources to carry out direct marketing, when
direct marketing is not feasible, and when they can
earn more by doing so. The most important functions
performed by intermediaries are information,
promotion, negotiation, ordering, financing, risk taking,
physical possession, payment, and title.
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Channel Functions
Forward Flow
Transportation, communication
Information, negotiation,
finance, risk taking
Backward Flow
Ordering, payment
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Channel Functions
1. Gather information about potential and current customers,
competitors, and others
2. Develop and disseminate persuasive communications to stimulate
purchasing
3. Reach agreements on price and other terms so that transfer of
ownership or possession can be effected
4. Place orders with manufacturers
5. Acquire funds to finance inventories at different levels in the
marketing channel
6. Assume risk connected with carrying out channel work
7. Provide for the successive storage and movement of physical
products
8. Provide for buyers payment of their bills through banks and other
financial institutions
9. Oversee actual transfer of ownership from one organization or
person to another
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Marketing Flows in the Marketing Channel for Forklift Trucks
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Channel Levels Consumer
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Zero-level (Direct marketing) channel
home parties
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Channel Levels B2B
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Designing a channel system
1. Analyzing customer needs
2. Establishing channel objectives
3. Identifying major channel alternatives
4. Evaluating major channel alternatives
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Analyzing customer needs
Price
Product Assortment
Convenience
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Shopping Goals
Economic
Social
Experiential
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Channels Service Outputs
it easy for customers
to purchase the
product
Spatial
Convenience
Waiting/
Deliver Time
Service Backup
Product Variety
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units the channel permits
a typical customer to
purchase on one
occasion
Lot Size
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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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Number of Intermediaries
Exclusive Distribution
limits the number of intermediaries
Intensive Distribution
many outlets as possible
Selective Distribution
only some of the intermediaries willing
to carry a particular product
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Evaluating Channel Alternatives
Economic Criteria
$4.07
(Face-to-Face Transaction)
$0.27
(ATM Transaction)
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$0.54
$0.01
(Phone Transaction)
(Online Transaction)
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The Value-Adds versus Costs of Different Channels
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Channel-Management Decisions
Training and Motivating
Selecting Channel Members
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Channel Integration and Systems
Horizontal Marketing Systems
Integrating Multichannel
Marketing Systems
two or more unrelated companies put
together resources or programs to exploit an
emerging marketing opportunity
Best Buy
Blockbuster
Disney
Amazon
Vertical Marketing Systems
includes the producer, wholesaler(s), and
retailer(s) acting as a unified system
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.com
Disney Store
the strategies and tactics of selling through
one channel reflect the strategies and tactics
of selling through one or more other channels
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Managing Channel Conflict
Employee Exchange
Dual Compensation
Mediation
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Levels of Retail Service
Self service
Self selection
Limited service
Full service
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Non store Retailing
Direct selling
Direct marketing
Automatic vending
Buying service
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Retailers Marketing Decisions
Target market
Product
assortment
Procurement
Prices
Services
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Store atmosphere
Store activities
Store experiences
Communications
Location
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Store Atmosphere and Experiences
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Increasing Sales in Retail Space
Keep shoppers in the store
Honor the transition zone
Dont make them hunt
Make merchandise available to the reach
and touch
Note that men do not ask questions
Remember women need space
Make checkout easy
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Wholesaling Functions
Selling and
promoting
Buying and
assortment
building
Bulk breaking
Warehousing
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Transportation
Financing
Risk bearing
Market information
Management
services and
counseling
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Terima kasih
Thank you
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LINK
http://www.youtube.com/watch?v=Tb8bF2hC
yLw = brian McCharty
http://www.youtube.com/watch?v=rqXIwjD3
Cso = Pepsi co
http://www.youtube.com/watch?v=17JMFvM
mT3w = Channel distribution explanation
http://www.youtube.com/watch?v=yZC4neLa
x5o = Wallmart supply chain
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LINK
Jobber is a person who is a wholesaler
basically, but is providing limited services too
like financing, delivery, shelving etc.
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