marketing management 14 th edition 15 designing and managing integrated marketing channels...
TRANSCRIPT
MARKETING MANAGEMENT14th edition
15 Designing and
Managing Integrated Marketing Channels
Kotler Keller
ContactContact
FinancingFinancing
InformationInformationRisk TakingRisk Taking
PromotionPromotion
MatchingMatchingNegotiationNegotiation
PhysicalDistribution
PhysicalDistribution
These Functions Should be Assigned to the Channel Member Who Can Perform Them Most Efficiently and Effectively to Provide Satisfactory Assortments of Goods and Services to
Target Customers.
Distribution Channel Functions
CHPT: 15&16-3
MM WW JJ RR CC
MM WW RR CC
MM RR CC
MM CC
Channel 1
Channel 2
Channel 3
Channel 4
Channel Level - Each Layer of Marketing Intermediaries that Perform Some Work in Bringing the Product and its
Ownership Closer to the Final Buyer.
Number of Channel Levels
Direct Channel
Indirect Channel
CHPT: 15&16-4
Channel Behavior & Conflict
• The channel will be most effective when:– each member is assigned tasks it can do best.– all members cooperate to attain overall channel goals
and satisfy the target market.
• When this doesn’t happen, conflict occurs:– Horizontal Conflict occurs among firms at the same
level of the channel, i.e retailer to retailer.– Vertical Conflict occurs between different levels of the
same channel, i.e. wholesaler to retailer.
• For the channel to perform well, each channel member’s role must be specified and conflict must be managed.
CHPT: 15&16-5
Conventional Marketing Channel vs. Vertical Marketing System
Conventional Marketing Channel
Vertical MarketingSystem
Manufacturer
Retailer
Manufacturer
Retailer
Wh
ole
sale
rW
hole
sale
rManufacturer
Wholesaler
Retailer
Consumer ConsumerCHPT: 15&16-6
CorporateCommon Ownership at Different Levels of the Channel i.e. Sears
ContractualContractual Agreements Among
Channel Members
AdministeredLeadership is Assumed by One or
a Few Dominant Members i.e. Kraft
Degree of
Direct Control
Types of Vertical Marketing Systems
CHPT: 15&16-7
ContractualVMS
ContractualVMS
RetailerCooperatives
RetailerCooperatives
FranchiseOrganizations
FranchiseOrganizations
Wholesaler SponsoredVoluntary Chain
Wholesaler SponsoredVoluntary Chain
Service-Firm-Sponsored
Franchise System
Service-Firm-Sponsored
Franchise System
Manufacturer-Sponsored Wholesaler
Franchise System
Manufacturer-Sponsored Wholesaler
Franchise System
Manufacturer-Sponsored RetailerFranchise System
Manufacturer-Sponsored RetailerFranchise System
Vertical Marketing Systems (VMS)
Vertical Marketing Systems (VMS)
CorporateVMS
CorporateVMS
AdministeredVMS
AdministeredVMS
Types of Vertical Marketing Systems
CHPT: 15&16-8
Analyzing Consumer Service Needs
Setting Channel Objectives & Constraints
ExclusiveDistribution
SelectiveDistribution
IntensiveDistribution
Identifying Major Alternatives
Evaluating the Major Alternatives
Designing International Distribution Channels
Channel Design Decisions
CHPT: 15&16-9
What is Retailing?
Includes all the activities Involved in Selling Goods or Services Directly to Final Consumers for Their Personal, Nonbusiness Use.
CHPT: 15&16-11
Retailing
• Retailing can be done in stores (store retailing) or out of a store (nonstore retailing) such as:
– Direct mail,– Catalogs,– Telephone,– Home shopping shows, – Internet.
CHPT: 15&16-12
Amount of Service
Self-Service, Limited-Service andFull-Service Retailer
Amount of Service
Self-Service, Limited-Service andFull-Service Retailer
Product LineLength and Breadth of the Product
Assortment
Product LineLength and Breadth of the Product
Assortment
Relative PricesPricing Structure that is Used
by the Retailer
Relative PricesPricing Structure that is Used
by the Retailer
Retail OrganizationsIndependent, Corporate, or
ContractualOwnership Organization
Classification of Retailing
CHPT: 15&16-13
Self-Service Self-Service RetailerRetailer
Provide Few or No Services to Shoppersi.e. Migros
Limited-ServiceLimited-ServiceRetailersRetailers
Provide Only a Limited Number of Services
to Shoppers i.e. ÇarşıFull-ServiceFull-Service
RetailersRetailers
Retailers that Provide a Full Range of Services
to Shoppersi.e. Arçelik
Classification of Retailing:Amount of Service
CHPT: 15&16-14
Specialty Stores
Department Stores
Supermarkets
Convenience Stores
Superstores
Discount Stores
Narrow Product Line, Deep Assortment i.e.
Deriden, TimberlandWide Variety of Product Lines i.e. Clothing,
Yeni Karamürsel, ÇarşıWide Variety of Food, Laundry, & Household Products i.e. Canerler
Limited Line of High-Turnover Convenience Goods i.e. Büfeler,
bakkallarLarge Assortment of Routinely Purchased Food & Nonfood Products
i.e. Real, MigrosStandard Merchandise at Lower Prices
i.e. Ulus, Kızılay mağazaları
Off-Price Retailers Changing Collection of Higher-Quality Goods at a Reduced Price i.e. Outlet
Warehouse ClubsLimited Selection of Brand-Name
Grocery Items, Appliances, Etc. i.e. Metro
Classification of Retailing:Product Line
Store Description
CHPT: 15&16-15