BIIB 14 16 MM I 10 Place Students Copy

Topics: Marketing, Supply chain, Distribution Pages: 26 (1839 words) Published: February 11, 2015
Topic 10

Place

Girish Ketkar

MM-I @ BIIB 2014-16 (Semester I)

Topic 10

Agenda





Definition and functions of channels of distribution
Channel design decisions, channel levels
Channel conflicts and resolution
Integrated marketing channels

Girish Ketkar

MM-I @ BIIB 2014-16 (Semester I)

Topic 10

1

Reading
• Marketing Management: A South Asian Perspective
(Kotler, Keller, Koshy, Jha)

» Chapter 14: Designing and Managing Integrated Marketing
Channels

Girish Ketkar

MM-I @ BIIB 2014-16 (Semester I)

Topic 10

Marketing Channels
(a.k.a. Channels of Distribution)

Girish Ketkar

MM-I @ BIIB 2014-16 (Semester I)

Topic 10

2

Marketing Channels

(a.k.a. Channels of Distribution)

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

Source: “Marketing Management: A South Asian Perspective (14 th edition)” by Kotler, Keller, Koshy, Jha

Girish Ketkar

MM-I @ BIIB 2014-16 (Semester I)

Marketing Channels

Topic 10

(a.k.a. Channels of Distribution)

• The link between manufactures (or service providers)
and customers

• Accomplish all the tasks necessary to effect a sale
and deliver products to the customer

Girish Ketkar

MM-I @ BIIB 2014-16 (Semester I)

Topic 10

3

Supply Chain
B2C
B2B

Suppliers

Direct
Suppliers

B2C
Consumer
Products
Manufacturer
(or Service
Provider)

Channels
Consumers
Intermediaries
Marketing channels
Distribution channels

Value creation/addition at each stage

Girish Ketkar

MM-I @ BIIB 2014-16 (Semester I)

Topic 10

Supply Chain or Demand Chain?

Supply Chain

Girish Ketkar

Demand Chain

MM-I @ BIIB 2014-16 (Semester I)

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4

Marketing Channels

(a.k.a. Channels of Distribution)

Merchants
• Buy, take title to, and resell the merchandise

Wholesalers, dealers,
retailers, etc.

Agents
Brokers, manufacturers’
representatives, sales agents,
etc.

Facilitators
Transportation companies,
independent warehouses,
banks, etc.

Girish Ketkar

• Search for customers,
• Negotiate on producer’s behalf
• Do not take title to the goods

• Assist in the distribution process
• Do not take title to goods
• Do not negotiate on producer’s behalf

MM-I @ BIIB 2014-16 (Semester I)

Topic 10

Importance of Marketing Channels
• Read
» Chapter 14: Designing and Managing Integrated Marketing
Channels
• The Importance of Channels
» Page 376
» Interconnectedness of channel decisions with
other marketing decisions
» Push strategy
» Pull strategy

Girish Ketkar

MM-I @ BIIB 2014-16 (Semester I)

Topic 10

5

Push Strategy / Pull Strategy
• Push strategy
» Inducing intermediaries to carry, promote and sell the
product to end users

• Pull strategy
» Persuading customers to demand the product from
intermediaries, thus inducing the intermediaries to order it

• In which situations are these strategies appropriate?
Source: “Marketing Management: A South Asian Perspective (14 th edition)” by Kotler, Keller, Koshy, Jha

Girish Ketkar

MM-I @ BIIB 2014-16 (Semester I)

Topic 10

Channel Functions and Flows

Girish Ketkar

MM-I @ BIIB 2014-16 (Semester I)

Topic 10

6

Types of Functions and Flows
Promotion/Communication
Information

Manufacturer

Consumers

Negotiation
Ordering
Storage and Movement (Delivery of Product/Service)
Title (Ownership)
Payment
Finance
Risk taking
Support
Girish Ketkar

MM-I @ BIIB 2014-16 (Semester I)

Topic 10

Types of Functions and Flows
• Functions constitute
» either a forward flow,
» or a backward flow,
» or a two-way flow.

• Marketing channels can be used for any one or more
of these functions/flows.

Girish Ketkar

MM-I @ BIIB 2014-16 (Semester I)

Topic 10

7

Channel Functions
• Read
» Chapter 14: Designing and Managing Integrated Marketing...
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