Chapter 15 - Designing and managing integrated marketing channels. In this chapter, we will address the following 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 are the key issues with e-commerce and m-commerce? | Kotler • Keller Phillip Kevin Lane Marketing Management • 14e Designing and Managing Integrated Marketing Channels Chapter 15 Discussion Questions What is a marketing channel system and value network? What work do marketing channels perform? How should channels be designed? Discussion Questions What decisions do companies face in managing their channels? How should companies integrate channels and manage channel conflict? What are the key issues with e-commerce and m-commerce? Sets of interdependent organizations participating in the process of making a product or service available for use or consumption. Marketing Channels Most producers do not sell their goods directly to final users. Between producers and final users stands one or more marketing channels, a host of marketing intermediaries performing a variety of functions. Intermediaries Merchants Agents Facilitators Merchants (wholesalers and retailers) buy, take title to, and resell merchandise. Agents . | Kotler • Keller Phillip Kevin Lane Marketing Management • 14e Designing and Managing Integrated Marketing Channels Chapter 15 Discussion Questions What is a marketing channel system and value network? What work do marketing channels perform? How should channels be designed? Discussion Questions What decisions do companies face in managing their channels? How should companies integrate channels and manage channel conflict? What are the key issues with e-commerce and m-commerce? Sets of interdependent organizations participating in the process of making a product or service available for use or consumption. Marketing Channels Most producers do not sell their goods directly to final users. Between producers and final users stands one or more marketing channels, a host of marketing intermediaries performing a variety of functions. Intermediaries Merchants Agents Facilitators Merchants (wholesalers and retailers) buy, take title to, and resell merchandise. Agents (brokers, manufacturers’ representatives, sales agents) search for customers and may negotiate on the producers behalf, but do not take title to the goods. Facilitators (shippers, independent warehouses, banks, ad agencies) assist in distribution, but do not take title to goods nor do the negotiate purchases or sales. Importance of Channels Ultimate Selling Price 30% - 50% Channel Members 5% - 7% Advertising Marketing channel decisions are among the most critical decisions facing management. The company’s chosen channel(s) profoundly affect all other marketing decisions. In the United States, channel members collectively have earned margins that account for 30 percent to 50 percent of the ultimate selling price. In contrast, advertising typically has accounted for less than 5 percent to 7 percent of the final price. Importance of Channels Push strategy Pull strategy A push strategy uses the manufacturer’s resources to induce intermediaries to carry, promote, and sell the product to .
