Chapter Questions
• What is a marketing channel system and
value network?
• What work do marketing channels perform?
• What decisions do companies face in
managing their channels?
• How should companies integrate channels
and manage channel conflict?
• What is the future for e-commerce?
15-1
Marketing Channels
Sets of interdependent organizations
involved in the process of making a
product or service available for use
or consumption.
15-2
Examples of Channels
• Dell (DTC)
• Avon
• Canada Post
• Grainger (auto parts network)
• Coca-cola (bottlers)
• McDonald’s restaurants (franchisee)
15-3
Increasing Efficiency
15-4
Consumer Marketing Channels
15-5
Channel Service Outputs
Lot size
Waiting/delivery time
Spatial convenience
Product variety
Service backup
15-6
Identifying Channel Alternatives
Types of
intermediaries
Number of
intermediaries
Terms and
responsibilities
15-7
Number of Intermediaries
Exclusive
Selective
Intensive
15-8
The Value Versus Costs of Channels
15-9
Channel-Management Decisions
Selecting channel members
Training channel members
Motivating channel members
Evaluating channel members
Modifying channel members
15-10
The Hybrid Grid
15-11
Managing Channel Conflict
• Superordinate goals
• Cooptation
• Diplomacy
• Mediation
• Arbitration
15-12
e-Commerce Marketing Practices
• Pure-click
• Brick-andclick
• Brick-andmortar
15-13
Buyer Expectations for e-commerce
• 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
online and offline
purchases
15-14