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    Module 4 - 1

    Uploaded by

    Supriya Vijay Sulakhi
    This document discusses marketing channels and how they deliver value to customers. It defines upstream and downstream partners in the value delivery network. A marketing channel is a set of interdependent organizations that facilitate the transfer of ownership as a product moves from producer to consumer. Channel members include all parties that buy and sell products to move them to the final consumer. Channels provide specialization, overcome discrepancies in quantity, assortment, time and location, and provide contact efficiency between organizations. Common channel intermediaries are identified. Channels perform transactional, logistical and facilitating functions. Channel behavior and conflicts are also discussed.

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    Module 4 - 1

    Uploaded by

    Supriya Vijay Sulakhi
    29 views16 pages
    This document discusses marketing channels and how they deliver value to customers. It defines upstream and downstream partners in the value delivery network. A marketing channel is a set of interdependent organizations that facilitate the transfer of ownership as a product moves from producer to consumer. Channel members include all parties that buy and sell products to move them to the final consumer. Channels provide specialization, overcome discrepancies in quantity, assortment, time and location, and provide contact efficiency between organizations. Common channel intermediaries are identified. Channels perform transactional, logistical and facilitating functions. Channel behavior and conflicts are also discussed.

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    This document discusses marketing channels and how they deliver value to customers. It defines upstream and downstream partners in the value delivery network. A marketing channel is a set of interdependent organizations that facilitate the transfer of ownership as a product moves from producer to consumer. Channel members include all parties that buy and sell products to move them to the final consumer. Channels provide specialization, overcome discrepancies in quantity, assortment, time and location, and provide contact efficiency between organizations. Common channel intermediaries are identified. Channels perform transactional, logistical and facilitating functions. Channel behavior and conflicts are also discussed.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    29 views16 pages

    Module 4 - 1

    Uploaded by

    Supriya Vijay Sulakhi
    This document discusses marketing channels and how they deliver value to customers. It defines upstream and downstream partners in the value delivery network. A marketing channel is a set of interdependent organizations that facilitate the transfer of ownership as a product moves from producer to consumer. Channel members include all parties that buy and sell products to move them to the final consumer. Channels provide specialization, overcome discrepancies in quantity, assortment, time and location, and provide contact efficiency between organizations. Common channel intermediaries are identified. Channels perform transactional, logistical and facilitating functions. Channel behavior and conflicts are also discussed.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 16

    MODULE 4

    Marketing Channels: Delivering Customer Value

    VALUE DELIVERY NETWORK

    Upstream partners include raw material suppliers, components, parts, information, finances, and expertise to create a product or service

    Downstream partners include the marketing channels or distribution channels that look toward the customer

    MARKETING CHANNEL

    Marketing channel is a set of interdependent organizations that eases the transfer of ownership as products move from producer to business user or consumer

    CHANNEL MEMBERS

    It means all parties in the marketing channel who negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving the product from the manufacturer into the hands of the final consumer

    PROVIDING SPECIALIZATION

    OVERCOMING DISCREPANCIES
    Discrepancy of Quantity Discrepancy of assortment Temporal discrepancy Spatial Discrepancy

    PROVIDING CONTACT EFFICIENCY


    SONY SONY

    Samsung

    Samsung

    CROMA

    LG

    LG

    CHANNEL INTERMEDIARIES
    Sole selling agent C & F agent Wholesaler Semi wholesaler Dealer Broker & Commission agent Franchisee

    CHANNEL FUNCTIONS

    Transactional Contracting Negotiating Risk Taking

    Logistical Physically distributing Storing Sorting

    Facilitating Researching Financing

    CHANNEL LEVELS

    CHANNEL BEHAVIOR AND ORGANIZATION


    Channel conflict refers to disagreement over goals, roles, and rewards by channel members Horizontal conflict Vertical conflict

    CONVENTIONAL DISTRIBUTIONS SYSTEMS


    Conventional distribution systems consist of one or more independent producers, wholesalers, and retailers. Each seeks to maximize its own profits, and there is little control over the other members and no formal means for assigning roles and resolving conflict.

    Vertical marketing systems (VMSs) provide channel leadership and consist of producers, wholesalers, and retailers acting as a unified system and consist of: Corporate marketing systems Contractual marketing systems Administered marketing systems

    Horizontal marketing systems are when two or more companies at one level join together to follow a new marketing opportunity. Companies combine financial, production, or marketing resources to accomplish more than any one company could alone.

    Multichannel Distribution systems (Hybrid marketing channels) are when a single firm sets up two or more marketing channels to reach one or more customer segments

    CHANGING CHANNEL ORGANIZATION

    Disintermediation occurs when product or service producers cut out intermediaries and go directly to final buyers, or when radically new types of channel intermediaries displace traditional ones

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