MKTG 506

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MKTG 506

• MKTG 506
• Tuesday, October 23
• Guest Lecture
• Trent Wachner
• PhD Candidate in Marketing

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• Background
• MBA- Golden Gate University (San Francisco)
• 10 years in outside sales/marketing
• Lucent Technologies

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• Todays Agenda
• Group Presentation
• Ads
• Channels of Distribution
• Retailing
• Marketing Jobs

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Videos

• Dove Onslaught
• Bank Robbery

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A FRAMEWORK for MARKETING MANAGEMENT
Chapter 13 Designing and Managing Value
Networks and Channels
Kotler Keller
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Chapter Questions

• What is a marketing channel system and value
  network?
• What work do marketing channels perform?
• What decisions do companies face in designing,
  managing, evaluating, and modifying their
  channels?
• How should companies integrate channels and
  manage channel conflict?
• How are companies managing e-commerce marketing?

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Marketing Channels
Marketing channels are sets of interdependent
organizations involved in the process of making a
product or service available for use or
consumption
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Value Chain, Supply Chain

• Value chain
• Supply chain

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Value Chain
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Supply Chain
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Distribution The Basics
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Channels and Marketing Decisions

• Push strategy
• Pull strategy

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Role of Marketing Channels

• Many producers lack resources to direct market
  products
• Producers may be able to earn greater ROI by
  investing in main business
• Direct marketing is not always feasible

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Table 13.1 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

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Marketing Channel Flows

• Physical flow
• Title flow
• Payment flow
• Information flow
• Promotion flow

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Consumer Marketing Channels

• 0-level
• Manufacturer to consumer
• 1-level
• Manufacturer to retailer to consumer
• 2-level
• Manufacturer to wholesaler to retailer to
  consumer
• 3-level
• Manufacturer to wholesaler to jobber to retailer
  to consumer

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Industrial Marketing Channels

• 0-level
• Manufacturer to industrial customer
• 1-level
• Manufacturer to industrial distributors to
  industrial customer
• 2-level
• Manufacturer to manufacturers rep to industrial
  distributors to industrial customer
• 3-level
• Manufacturer to manufacturers sales branch to
  industrial distributors to industrial customer

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Types of Distribution Channels
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Consumer Channels
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B2B Channels
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Designing a Marketing Channel System

• Analyze customer needs
• Establish channel objectives
• Identify major channel alternatives
• Evaluate major channel alternatives

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Channels Produce Five Service Outputs

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

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Identifying Channel Alternatives

• Types of intermediaries
• Number of intermediaries
• Terms and responsibilities

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Channels of Distribution

• Coke or Pepsi
• Shasta Cola
• Used textbooks

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Number of Intermediaries

• Intensive
• Exclusive
• Selective

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Channel-Management Decisions

• Selecting channel members
• Training channel members
• Motivating channel members
• Evaluating channel members
• Modifying channel members

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Channel Integration and Systems

• Vertical marketing systems
• Corporate VMS
• Administered VMS
• Contractual VMS
• Horizontal marketing systems
• Multichannel marketing systems

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Managing Channel Conflict

• Adoption of superordinate goals
• Cooptation
• Diplomacy
• Mediation
• Arbitration

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E-Commerce Marketing Practices

• Pure-click
• Brick-and-click
• Brick-and-mortar

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Group Exercise

• Design a channel of distribution around the Apple
  iPhone.
• See handout
• Start upstream and work down
• Be explicit with each channel
• Use concepts from todays discussion
• Would the design differ for B2B from B2C? Explain.

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A FRAMEWORK for MARKETING MANAGEMENT
Chapter 14 Managing Retailing, Wholesaling,
and Logistics
Kotler Keller
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Chapter Questions

• What are the major types of marketing
  intermediaries?
• What marketing decisions do these marketing
  intermediaries make?
• What are the major trends in the retailing,
  wholesaling, and logistics?

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Retailing
Retailing includes all the activities involved
in selling goods or services directly to final
consumers for personal, nonbusiness use
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Retailing

• Retailing is the final stage in the channel of
  distribution
• Who are retailers?
• Wheel of Retailing

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Retail Life Cycle

• Introduction
• Growth
• Maturity
• Decline

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Levels of Retail Service

• Self-service
• Self-selection
• Limited service
• Full service

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Levi Strauss Vending Machine
Levi Strauss sells jeans in vending machines to
French consumers
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Table 14.1 Major Retailer Types

• Specialty store
• Department store
• Supermarket
• Convenience store

• Discount store
• Off-price retailer
• Superstore
• Catalog showroom

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Nonstore Retailing

• Direct selling
• Direct marketing
• Automatic vending
• Buying service

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Online Retailing

• Barriers to success
• Delayed gratification
• People need touch--feel info before buying
  inability to try it on
• Security concerns
• Concerns that inventory sold online will
  cannibalize store sales
• May increase price competition

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Retailers Marketing Decisions
Target market
Product assortment
Service/store atmosphere
Price
Communication
Location
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Figure 16.2 Mapping Store Personality
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Location Decision

• General business districts
• Regional shopping centers
• Community shopping centers
• Strip malls
• Location within a larger store

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Trends in Retailing

• New retail forms and combinations
• Growth of intertype competition
• Competition between store-based and
  non-store-based retailing
• Growth of giant retailers
• Decline of middle market retailers
• Growing investment in technology
• Global presence of major retailers