Lectures Marketing management: Chapter 15 - ThS. Nguyễn Tiến Dũng

Lectures "Marketing management - Chapter 15: Designing and managing integrated marketing channels" provides students with the knowledge:  Marketing channels and value networks, the role of marketing channels, channel design decisions, channel management decisions, channel integration and systems. Invite you to refer to the disclosures.

CHAPTER 15 DESIGNING AND MANAGING

INTEGRATED MARKETING CHANNELS

Nguyen Tien Dung, MBA Email: dung.nguyentien3@hust.edu.vn

Chapter Questions

1. What is a marketing channel system and

value network?

2. What work do marketing channels perform?

3. How should channels be designed?

4. What decisions do companies face in

managing their channels?

5. How should companies integrate channels

and manage channel conflict?

6. What are the key issues with e-commerce

and m-commerce?

Main Contents

1. Marketing Channels and Value Networks

2. The Role of Marketing Channels

3. Channel-Design Decisions

4. Channel-Management Decisions

5. Channel Integration and Systems

6. Conflict, Cooperation, and Competition

7. E-Commerce & M-Commerce Marketing

Practices

1 Marketing Channels and Value Networks

● The Importance of Channels

● Hybrid Channels and Multichannel

● Marketing

● Value Networks

● Definition:

organizations involved in the process of making a physical product or a service available for use or consumption.

● The importance of channels: channel

functions and flows

● Channel development

● Hybrid channel

● Marketing channels and value networks

● Does a manufacturer need an intermediary or not?

● The gap between a manufacturer (what he is

the best) and a consumer (what he needs)

The importance of channels

Value networks

● A value network – a system of partnerships and alliances that a firm creates to source, augment, and deliver its offerings

● Supply Chain Management (SCM)

● Enterprise Resource Planning (ERP)

● Customer Relationship Management (CRM)

Value Chain

Marketers’ participation in the value network

● Present: downstream, CRM, product and

customer managers

● Future: upstream, network managers

2 The Role of Marketing Channels

● Channel Functions and Flows

● Channel Levels

● Service Sector Channels

Channel Functions and Flows

Channel Levels

Service Sector Channels

Booking Office Customers

Sales agents Customers

Corporate website Customers

3 Channel-Design Decisions

● Analyzing Customer Needs and Wants

● Establishing Objectives and Constraints

● Identifying Major Channel Alternatives

● Evaluating Major Channel Alternatives

3.1 Analyzing customers’ desired service output levels

● Five service output types:

Understanding customer needs

● Three types of customers based on value

orientation:

How do European customers value?

3.2 Establishing objectives and constraints

● A balance between:

● Types of objectives:

be served

3.3 Identifying Major Channel Alternatives

● Types of channels and intermediaries

department stores (trade centers)

Designing Terms and Responsibilities of Channel

Members

● Price policy

● Conditions of sale

● Distributors’ territorial rights

● Mutual services and responsibilities

3.4 Evaluating the major alternatives

The Value-Adds versus Costs of Different Channels

● Company-owned store:

● Sales agent / a distributor

4 Channel-Management Decisions

● Selecting Channel Members

● Training and Motivating Channel Members

● Evaluating Channel Members

● Modifying Channel Design and

Arrangements

● Channel Modification Decisions

● Global Channel Considerations

Mini Case: Dell Computer

● What are the problems facing Dell?

Dell’s problems

● From B2B to B2C?

channels (to sell more to consumers) – did not

have any relationship with retailers.

competitive prices)

customer satisfaction.S

5 Channel Integration and Systems

● Vertical Marketing Systems:

Consumers

● Horizontal Marketing Systems

Coca-Cola

● Integrating Multichannel Marketing Systems

Conventional Channels vs Vertical Marketing Systems (VMSs)

● Conventional channels:

and retailer(s)

own profits, even if this goal reduces profit for the

system as a whole.

control over other members.

● Vertical marketing systems (VMSs)

Hybrid channel grids

6 Conflict, Cooperation, and Competition

● Types of Conflict and Competition

● Causes of Channel Conflict

● Managing Channel Conflict

● Dilution and Cannibalization

● Legal and Ethical Issues in Channel

Relations

Conflict, Cooperation, and Competition

• Goal incompatibility

• Unclear roles and rights

• Differences in perception

• Intermediaries’

dependence

on the manufacturer

Conflict resolution

7 E-Commerce & M-Commerce Marketing Practices

● Pure click companies: dot-com companies

● Brick-and-click companies: traditional

companies with website for e-commerce

● M-Commerce: mobile

M-Commerce