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Chapter Nine Marketing Channels and Channel Mapping

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1 Chapter Nine Marketing Channels and Channel Mapping

2 Marketing Channels and Channel Mapping
Marketing channel performance Alternative marketing channels Marketing channels that improve customer value Marketing channels and competitive advantage Profit impact of alternative marketing channels

3 Figure 9-1 Channel Map for an Electronic Components Company
A CHANNEL MAP is a diagram of the types of purchase points a business uses. Figure 9-1 Channel Map for an Electronic Components Company

4 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?

5 Marketing Channel Performance
Customer Reach (Volume) Operating Efficiency (Cost to Serve) Service Quality (Retention)

6 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?

7 Direct Channel Systems
Direct Sales Online Marketing Direct Marketing Tele-Marketing Reps/Agents Consumer Markets

8 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?

9 Alternative B2B Marketing Channel
Figure 9-12 Alternative B2B Marketing Channels

10 Channel Systems That Build Customer Value
How does a channel system enhance customer value? Product Benefits Customer Value Service Benefits Price Non-price Costs Brand Benefits

11 Building Value Delivering Product Benefits Delivering Service 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

12 Channel Systems and Competitive Advantage
Sales force advantage Sales productivity Distribution advantage

13 Distribution Advantage
Figure 9-20 Channel Margin vs. Channel Marketing Expenses

14 Review Channel mapping Marketing channel performance
Alternative marketing channels Marketing channels that improve customer value Marketing channels and competitive advantage Profit impact of alternative marketing channels

15 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2009 Pearson Education, Inc.   Publishing as Prentice Hall


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