Transcript Channels
MANAGING MARKETING CHANNELS OF DISTRIBUTION Sales and Distribution Management Marketing 3345 APPLE STORES: CREATING A HIGH-TOUCH CUSTOMER EXPERIENCE IN A HIGH-TECH MARKETING CHANNEL The variety of terms used for marketing intermediaries that vary in use in consumer and business markets Intermediaries minimize transactions and the cost of distribution for producers and customers NATURE AND IMPORTANCE OF MARKETING CHANNELS THE VALUE CREATED BY INTERMEDIARIES Marketing Channel Functions Performed by Intermediaries • Transactional Function • Logistical Function • Facilitating Function Utilities Received by Consumers Marketing channel intermediaries perform three functions, each consisting of different activities Common marketing channels for consumer offerings by the kind and number of intermediaries One Telecom Company’s Consumer Market Channels CUSTOMER ACQUISITION CUSTOMER DEVELOPMENT MASS MEDIA MAILBOX MARKETING FACE TO FACE LIFESTYLE INTERCEPT Business Office Best Customer Centers Advertising Response Direct Mail Retail Stores Military Catalog Express Kiosks Smart Moves RSC Service Upselling Direct Mail Prin t Retiremen t Internet National Retailers Kids Away Specialty Agent s Employee/ Employer Association s TV Radio Newcomer Campu s AFFINITY Outbound Telemarketin g Local Agents Direct Sales Welcome Package Director y Event Marketin g On the Move Co-Marketing Partners Common marketing channels for business offerings by the kind and number of intermediaries Consumer electronic marketing channels are similar to those for consumer and business offerings CHANNEL STRUCTURE & ORGANIZATION DUAL DISTRIBUTION & STRATEGIC CHANNEL ALLIANCES Dual Distribution Strategic Channel Alliances HELP YOUR CHILD FEEL BETTER WITH TRIAMINIC® PRODUCTS AND A REDBOX MOVIE RENTAL The Top Five Reasons for Selling Through Distributors 1. 2. 3. 4. 5. Customers demand it. Market access. Lower marketing and selling expenses. Distributors perform necessary functions. Reduced collection problems. Functions performed by independent wholesaler types CHANNEL STRUCTURE & ORGANIZATION CHANNEL INTERMEDIARIES Agents and Brokers • Manufacturer’s Agents • Selling Agents • Brokers Manufacturers • Branch Offices • Sales Offices Three types of vertical marketing systems: corporate, contractual (most popular), and administered McDonalds and H&R Block What vertical marketing system does each use? CHANNEL CHOICE AND MANAGEMENT FACTORS AFFECTING CHANNEL CHOICE Environmental Factors Consumer Factors Product Factors Company Factors CHANNEL CHOICE AND MANAGEMENT CHANNEL CHOICE CONSIDERATIONS Target Market Coverage • Intensive Distribution • Exclusive Distribution • Selective Distribution CHANNEL CHOICE AND MANAGEMENT CHANNEL CHOICE CONSIDERATIONS Satisfying Buyer Requirements • Information • Convenience • Variety • Pre- or Post-Sale Service Jiffy Lube and Petco What buyer requirements have been satisfied? 15-29 GOING ONLINE Visit an Apple Store to See What All the Excitement is About Apple Product Examples iPhone iMac iPad MacBook Air CHANNEL CHOICE AND MANAGEMENT CHANNEL CHOICE CONSIDERATIONS Profitability • Margins Earned • Channel Costs Global Dimensions of Marketing Channels USING MARKETING DASHBOARDS Channel Sales and Profit at Charlesburg Furniture CHANNEL CHOICE AND MANAGEMENT CHANNEL RELATIONSHIPS Sources of Channel Conflict • Vertical Conflict • Disintermediation • Horizontal Conflict CHANNEL CHOICE AND MANAGEMENT CHANNEL RELATIONSHIPS Legal Considerations • Dual Distribution • Tying Arrangements • Vertical Integration • Refusal to Deal • Exclusive Dealing • Resale Restrictions The Clayton Act and Sherman Act place legal restrictions on specific marketing channel strategies and practices