Designing and Managing Value Networks and Channels

Topics: Marketing, Supply chain management, Value Pages: 3 (345 words) Published: September 27, 2012
15 Designing and Managing Value Networks and Channels



Chapter Questions
What is a marketing channel system and value network? What work do marketing channels perform? How should channels be designed? 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? 15-2

Marketing Channels

Sets of interdependent organizations involved in the process of making a product or service available for use or consumption.


Channels and Marketing Decisions

Push Strategy

Pull Strategy


Categories of Buyers
Habitual shoppers High value deal seekers Variety-loving shoppers High-involvement shoppers


Buyer Expectations for Channel Integration 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


Should the 4 P’s be replaced? Solutions Information Value Access


Channel Member Functions
Gather information Develop and disseminate persuasive communications Reach agreements on price and terms Acquire funds to finance inventories Assume risks Provide for storage Provide for buyers’ payment of their bills Oversee actual transfer of ownership 15-8

Designing a Marketing Channel System Analyze customer needs Establish channel objectives Identify major channel alternatives Evaluate major channel alternatives


Channel Service Outputs
Lot size Waiting/delivery time Spatial convenience Product variety Service backup


Identifying Channel Alternatives
Types of intermediaries Number of intermediaries Terms and responsibilities


Number of Intermediaries
Exclusive Selective Intensive


Channel-Management Decisions
Selecting channel members Training channel...
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