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MARKETING MANAGEMENT 1 4 th edition

MARKETING MANAGEMENT 1 4 th edition. 15 Designing and Managing Integrated Marketing Channels. Kotler Keller. How a Marketing Intermediary Reduces the Number of Channel Transactions. Distribution Channel Functions.

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MARKETING MANAGEMENT 1 4 th edition

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  1. MARKETING MANAGEMENT14th edition 15 Designing and Managing Integrated Marketing Channels Kotler Keller

  2. How a Marketing Intermediary Reduces the Number of Channel Transactions

  3. Distribution Channel Functions 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. Risk Taking Information Financing Promotion Contact Physical Distribution Matching Negotiation

  4. Number of Channel Levels Channel Level - Each Layer of Marketing Intermediaries that Perform Some Work in Bringing the Product and its Ownership Closer to the Final Buyer. M C Channel 1 Direct Channel M C R Indirect Channel Channel 2 M C W R Channel 3 M J C W R Channel 4

  5. 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.

  6. Conventional Marketing Channel vs. Vertical Marketing System Conventional Marketing Channel Vertical Marketing System Manufacturer Retailer Manufacturer Wholesaler Wholesaler Retailer Consumer Consumer

  7. Corporate Common Ownership at Different Levels of the Channel i.e. Sears Types of Vertical Marketing Systems Contractual Contractual Agreements Among Channel Members Administered Leadership is Assumed by One or a Few Dominant Members i.e. Kraft Degree of Direct Control

  8. Contractual VMS Corporate VMS Wholesaler Sponsored Voluntary Chain Franchise Organizations Retailer Cooperatives Manufacturer- Sponsored Retailer Franchise System Service-Firm- Sponsored Franchise System Manufacturer- Sponsored Wholesaler Franchise System Types of Vertical Marketing Systems Vertical Marketing Systems (VMS) Administered VMS

  9. Analyzing Consumer Service Needs Setting Channel Objectives & Constraints Identifying Major Alternatives Channel Design Decisions Evaluating the Major Alternatives Designing International Distribution Channels Intensive Distribution Exclusive Distribution Selective Distribution

  10. MARKETING MANAGEMENT14th edition 16 Managing Retailing and Wholesaling Kotler Keller

  11. What is Retailing? Retailing Includes all the activities Involved in Selling Goods or Services Directly to Final Consumers for Their Personal, Nonbusiness Use.

  12. 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.

  13. Retail Organizations Independent, Corporate, or Contractual Ownership Organization Classification of Retailing Amount of Service Self-Service, Limited-Service and Full-Service Retailer Product Line Length and Breadth of the Product Assortment Relative Prices Pricing Structure that is Used by the Retailer

  14. Classification of Retailing:Amount of Service Self-Service Retailer Provide Few or No Services to Shoppers i.e. Migros Limited-Service Retailers Provide Only a Limited Number of Services to Shoppers i.e. Çarşı Full-Service Retailers Retailers that Provide a Full Range of Services to Shoppers i.e. Arçelik

  15. Specialty Stores Narrow Product Line, Deep Assortment i.e. Deriden, Timberland Department Stores Wide Variety of Product Lines i.e. Clothing, Yeni Karamürsel, Çarşı Supermarkets Wide Variety of Food, Laundry, & Household Products i.e. Canerler Convenience Stores Limited Line of High-Turnover Convenience Goods i.e. Büfeler, bakkallar Superstores Large Assortment of Routinely Purchased Food & Nonfood Products i.e. Real, Migros Discount Stores Standard 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 Clubs Limited Selection of Brand-Name Grocery Items, Appliances, Etc. i.e. Metro Classification of Retailing:Product Line Store Description

  16. Classification of Retailing:Retail Organization Corporate Chain (TGI) Membership Group (Fabrika, Çarşı, Network. Beymen) Leased (Tepe Home) Franchise (North Shield) Independent Retailers

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