Chapter 15 Designing and Managing Integrated

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Phillip
Kevin Lane
Kotler • Keller
Marketing Management • 14e
Designing and Managing
Integrated Marketing Channels
Discussion Questions
1. What is a marketing channel system
and value network?
2. What work do marketing channels
perform?
3. How should channels be designed?
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Discussion Questions
4. What decisions do companies face in
managing their channels?
5. How should companies integrate
channels and manage channel conflict?
6. What are the key issues with ecommerce and m-commerce?
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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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Intermediaries
Merchants
Agents
Facilitators
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Importance of Channels
Ultimate Selling Price
30% - 50%
Channel Members
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5% - 7%
Advertising
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Importance of Channels
Push strategy
Pull strategy
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Multichannel Marketing (Hybrid)
Internet
Sales Force
Telemarketing
Direct Mail
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Value Networks
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Role of Marketing Channels
Merchants
Agents
Contacts
Experience
Specialization
Scale of operation
Facilitators
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Channel Functions and Flows
Time
Place
Possession
Forward Flow
Transportation, communication
Information, negotiation,
finance, risk taking
Backward Flow
Ordering, payment
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Five Marketing Flows in the
Marketing Channel
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Channel Levels
Zero-level (Direct marketing) channel
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Channel Levels – Consumer
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Channel Levels – B2B
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Channel-Design Decisions
Customer wants and needs
Objectives and constraints
Identifying and evaluate alternatives
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Customer Needs and Wants
Price
Product Assortment
Convenience
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Shopping Goals
• Economic
• Social
• Experiential
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What do European Consumers Value
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Channels Service Outputs
Spatial Convenience
Waiting/
Deliver Time
Service Backup
Product Variety
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Lot Size
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Objectives and Constraints
Service
Costs
Nonstandard Products
Bulky Products
Installation / Maintenance
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Identify 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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Identify Channel Alternatives
Channel Alternatives
• Type of Intermediaries
• Number of Intermediaries
• Terms and Responsibilities
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Types of Intermediaries
Satellite Radio
Manufacturer
Dealers
OEMs
Ray’s Cars
Direct to Consumers
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Number of Intermediaries
Exclusive Distribution
Intensive Distribution
Selective Distribution
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Evaluating Channel Alternatives
Economic Criteria
$4.07
(Face-to-Face Transaction)
$0.27
(ATM Transaction)
$0.54
$0.01
(Phone Transaction)
(Online Transaction)
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Value-Adds vs. Costs of
Different Channels
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Break-Even Cost Chart: Company
Sales Force vs. Sales Agency
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Channel-Management Decisions
Training and Motivating
Selecting Channel Members
Modifying
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Evaluating
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Channel Integration and Systems
Horizontal Marketing Systems
Integrating Multichannel
Marketing Systems
Best Buy
Blockbuster
Disney
Amazon
.com
Disney Store
Vertical Marketing Systems
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The Hybrid Grid
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Conflict, Cooperation & Competition
Channel Coordination
Channel Conflict
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Channel Conflict
Multichannel Conflict
Vertical Channel Conflict
Horizontal Channel Conflict
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Managing Channel Conflict
Employee Exchange
Dual Compensation
Legal Recourse
Mediation
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E-Commerce Marketing Practices
Brick-and-Click Firms
B2B E-Commerce
Pure-Click Firms
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M-Commerce Marketing Practices
M-Commerce
Text Promotions
GPS Features
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