Chapter 9 - Business marketing channels. In this chapter, students will be able to understand: Describe the functions of a marketing channel, classify the various intermediaries used in business marketing, analyze customer needs for channel service outputs, design a channel system that can provide customers with the services they want and attain a competitive advantage,. | McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved. Chapter 9 Business Marketing Channels: Partnerships for Customer Service KEY OBJECTIVES OF MARKETING CHANNELS DELIVER THE NEEDED GOOD/SERVICE PLACE THE GOOD/SERVICE WHERE IT IS WANTED HAVE THE GOOD/SERVICE WHEN IT IS WANTED 9- MARKETING CHANNEL DIFFICULTIES CHANNELS ARE EXPENSIVE TO ESTABLISH CHANNELS ARE COSTLY TO COORDINATE CHANNELS ARE SLOW TO ADAPT TO ENVIRONMENTAL CHANGES 9- WHAT DISTRIBUTORS DO CONTRIBUTION TO MANUFACTURERS MARKET COVERAGE SALES CONTACTS INVENTORY AVAILABILITY ORDER PROCESSING MARKET INTELLIGENCE CUSTOMER SUPPORT CONTRIBUTION TO CUSTOMERS PRODUCT AVAILABILITY PRODUCT ASSORTMENT FITTING ORDER QUANTITY CREDIT SERVICE TECHNICAL SUPPORT 9- A MODEL FOR CHANNEL DESIGN Identify and forecast user service needs Evaluate current channels and other options Create a vision of the ideal channel Implement the best option and manage the system Gap Analysis Exhibit 9-5 9- | McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved. Chapter 9 Business Marketing Channels: Partnerships for Customer Service KEY OBJECTIVES OF MARKETING CHANNELS DELIVER THE NEEDED GOOD/SERVICE PLACE THE GOOD/SERVICE WHERE IT IS WANTED HAVE THE GOOD/SERVICE WHEN IT IS WANTED 9- MARKETING CHANNEL DIFFICULTIES CHANNELS ARE EXPENSIVE TO ESTABLISH CHANNELS ARE COSTLY TO COORDINATE CHANNELS ARE SLOW TO ADAPT TO ENVIRONMENTAL CHANGES 9- WHAT DISTRIBUTORS DO CONTRIBUTION TO MANUFACTURERS MARKET COVERAGE SALES CONTACTS INVENTORY AVAILABILITY ORDER PROCESSING MARKET INTELLIGENCE CUSTOMER SUPPORT CONTRIBUTION TO CUSTOMERS PRODUCT AVAILABILITY PRODUCT ASSORTMENT FITTING ORDER QUANTITY CREDIT SERVICE TECHNICAL SUPPORT 9- A MODEL FOR CHANNEL DESIGN Identify and forecast user service needs Evaluate current channels and other options Create a vision of the ideal channel Implement the best option and manage the system Gap Analysis Exhibit 9-5 9- SOURCES OF CONFLICT IN MARKETING CHANNELS GOAL CONFLICT: SALES GROWTH VS. PROFITS MEANS CONFLICT: HOW THINGS GET DONE AND WHO DOES WHAT & WHEN IS IT DONE CONFLICTING VIEWPOINTS: OUR VIEWPOINT VS. YOUR VIEWPOINT 9- HOW CHANNEL MEMBERS CAN RESPOND TO CONFLICT EXIT—Can leave the relationship VOICE—Can find a means to articulate dissatisfaction LOYALTY—Can continue to persevere in face of conflict AGGRESSION—Can openly or covertly take actions to injure the conflict party NEGLECT—Can leave the conflict untreated and fade away 9- OPTIONS FOR RESOLVING CONFLICT PRIVATE REFEREES—Panel of channel members serve as a forum THIRD PARTY SOLUTIONS—Mediated resolution EMPATHIC MECHANISMS Use of a specialist Join Partner’s Industry Association Exchange personnel 9- SOURCES OF CHANNEL POWER REWARD POWER — Ability to provide days off for specific outcome/behavior COERCIVE POWER — Ability to punish for failure to perform INFORMATION POWER — Ability to obtain information others do not have .
