What is a MARKETING CHANNEL SYSTEM & VALUE NETWORK

A presentation based on the chapter : Designing and Managing Integrated Marketing Channels .

JALAJ GARG IIT-GUWAHATI

What is a Marketing Channel ??

MARKETING CHANNELS : are sets of independent organizations participating in the process of making a product or services available for use or consumption .

They are the set of PATHWAYS a product or service follows after production , culminating in purchase and consumption by the final end user

THE IMPORTANCE OF CHANNELS

A Marketing Channel System is the particular set of marketing channels

a firm employs and takes management decisions regarding

these channels .

Marketing Channels represent a substantial Opportunity Cost

Yet another CHIEF ROLE :

CONVERTING POTENTIAL BUYERS TO PROFITABLE CUSTOMERS

Different forms of Intermediaries :

In management of Intermediaries , two strategies

used are :

In management of Intermediaries , two strategies

used are :

PUSH STRATEGY 1

In management of Intermediaries , two strategies

used are :

PULL STRATEGY 2

MULTICHANNEL MARKETING :

MULTICHANNEL MARKETING OR HYBRID CHANNELS occurs when a single firm uses two or more marketing channels to reach customer

segments .

Now , what is a Value Network ??

A VALUE NETWORK is a system of partnerships and alliances that a firm creates to source , augment , and deliver its

offerings .

It includes :

The Firm

Firm’s immediate consumer

Firm’s End Consumers

Firm’s Supplier

Supplier’s Supplier

To be continued with the Role of marketing channels in the next presentation These slides were Created by Jalaj Garg, IIT Guwahati, during a Marketing internship by Prof. Sameer Mathur, IIM Lucknow.( see www.IIMInternship.com)