Marketing Channels and E-Marketing

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Market-Based Management, 4th edition

• Marketing Channels and E-Marketing

Chapter Nine
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Marketing Channels and E-Marketing

• Chapter Nine
• Marketing Channels and Channel Strategy
• Alternative Channel Systems
• Building Value with Channel Systems
• Profit Impact of Channel Strategies

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Marketing Channels and Channel Strategy

• What are Marketing Channels?
• What Types of Marketing Channels exist?
• Direct
• Indirect
• Mixed
• What is the primary objective of a Marketing
  Channel?

• What three areas of performance will the choice
  of channel impact?
• Customer Value
• Sales Revenues
• Profitability
• How can Marketing Channels serve as a source of
  Competitive Advantage?

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Marketing Channel Performance
Channel Performance
Customer Reach (Volume)
Operating Efficiency (Cost to Serve)
Service Quality (Retention)
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Alternative Channel Systems
Direct Channel Systems
Mixed Channel Systems
Indirect Channel Systems
Channel Intermediaries
Target Market Customers
Which Channel system is most preferred by firms?
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Direct Channel Systems
Direct Sales
Direct Marketing
Online Marketing
Tele-Marketing
Reps/Agents
Consumer Markets
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Indirect Channel Systems
Wholesalers
Indirect Channel Systems
Reps/Agents
Consumer Markets
Retailers
Why do firms use Indirect Channel Systems? When
is it appropriate to use Mixed Channel Systems?
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Channel Systems that Build Customer Value

• How does a channel system enhance customer
  value?
• Increasing Customer Benefits
• Lowering Cost of Purchase

Product Benefits
Customer Value
ServiceBenefits
Price
BrandBenefits
Non-price Costs
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Building Value

• Delivering Product Benefits
• Product Quality
• Product Assortment
• Product Form
• Delivering Service Benefits
• After-Sale Services
• Availability/Delivery
• Transaction Services

• Improving Cost Efficiency
• i.e. making a product readily available

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Channel Systems and Competitive Advantage

• Sales Force Advantage
• Sales Productivity
• Distribution Advantage

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Profit Impact of Alternative Marketing Channels
15.08
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Takeaways/Review

• Marketing Channels and Systems
• Channel Performance
• Alternative Systems
• Direct
• Indirect
• Mixed

• Building Customer Value and a Competitive
  Advantage with Channels
• Profit Impact of Channel Selection

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Marketing Performance Tools
Channel Marketing Profitability
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Marketing Performance Tools
Channel Break-Even Volume/Price