Market Ting Ppt

8/7/2019 Market Ting Ppt

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VALUE NETWORK

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VALUE NETWORK

Submitted to :

Mr. Sanjay Nandal

Submitted to :

Mr. Sanjay NandalSubmitted by:

Deepak

Roll no . 2414 MBA 2.2 ( BE)

Submitted by:

Deepak

Roll no . 2414 MBA 2.2 ( BE)



What is a marketing channel?A marketing channel is a set of practices or

activities necessary to transfer the ownership of goods,and to move goods, from the point of production to the

point of consumption.

It is a formal structure for sales and distribution.



R ole of Marketing channel

y Links producers to buyers.

y Performs sales, advertising and promotion.

y Transport, store, and deliver products .

y motivate, communicate, and provide services for

customers



K inds of Marketing ChannelsTo reach the target market, marketers use three

kinds of marketing channels

Co mmunicati o n channels :Two-way systems, with information flowing

from the marketer to the consumer and back from the

consumer .Includes advertising, pr o m o ti o nal literature,

trade pr o m o ti o ns, mail, teleph o ne campaigns, pr o ducttraining , and any vehicle of marketing information .



Marketing channels:D istributi o n C hannels :

The act of transferring product titles from onechannel member to another require a series of intermediaries such as wh o lesalers , br o kers , agents , and

retailers before the final act of transferring the product tothe consumer is completed



Marketing Channels:S ervice C hannels :

Used to carryout transactions with potential buyers.Service channels include wareh o uses, transp o rtati o nco mpanies, banks, and insurance c o mpanies thatfacilitate transactions.

Marketers face the design problem of choosing thebest mix of communication, distribution and servicechannels for their offering .



M arketing C hannelsM arketing C hannels

Sets of interdependent organizations

involved in the process of makinga product or service availablefor use

or consumption.

Ma r keting ChannelInte rm edia r iesP r oduce r Consu m e r s



Push vs Pull Strategiesy A Push strategies involves the manufacturer using sales force

and trade promotion money to induce intermediaries to carry,promote and sell the product to end users.

y A Pull strategy involves the manufacturer using advertising andpromotion to persuade consumers to ask intermediaries forthe product, thus inducing the intermediaries to order it.



Creates UtilityMarketing / Distribution Channels create Time, Place,Possession/ownership utility.

y Delivered at the right time - TIME UTILITYy Delivered at the right place - PLACE UTILITYy With appropriate legal requirements - POSSESSION /

OWNE R SHIP UTILITY





Marketing Channel Flows



Consumer Marketing Channels



Industrial Marketing Channels



Types of Intermideatersyy I ntensiveI ntensive distributi o ndistributi o n : Channel policy in which a

manufacturer of a convenience product attempts tosaturate the market

yy S electiveS elective distributi o ndistributi o n : Channel policy in which a firmchooses only a limited number of retailers to handle its

product line

yy

Ex clusiveEx clusive distributi o ndistributi o n : Channel policy in which a firmgrants exclusive rights to a single wholesaler or retailer tosell its products in a particular geographic area



Types«.

IntensiveDist r ibution

Ex clusiveDist r ibution

L evi¶s W o men¶s503 Jeans

SelectiveDist r ibution



The Value-Adds Vs Costs of DifferentChannels



Bases of Powe r fo r ChannelBases of Powe r fo r Channel

Cont r olCont r oly R eward p o wer is based on perception held by channel member thatanother group has the ability to provide rewards for varying performances.

y Co ercive p o wer is based on perception held by channel member that

another group has the ability to inflict punishment.

y L egitimate P o wer is based on perception held by channel member thatanother group has the right to influence the formers action.

y R eferent P o wer is based on perception held by channel member thatanother group should be identified with as copying the latter style, beliefs andactions. Exmp. IBM,HEWLETT-PAC K WA R D have high referent power.

y Ex pert P o wer is based on perception held by channel member thatanother group should be identified with latter¶s knowledge and expertise.



Marketing Debate

Does it m atte r whe r e you a r e sold?

Take a position:1. Channel images do not really affect the

brand images of the products they sell.2. Channel images must be consistent with

the brand image.



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Market Ting Ppt