Principles of Marketing, Arab World Edition PDF

Principles of Marketing, Arab World Edition Philip Kotler, Gary Armstrong, Anwar Habib, Ahmed Tolba Presentation prepared by Annelie Moukaddem Baalbaki CHAPTER FOURTEEN Managing...

Principles of Marketing, Arab World Edition Philip Kotler, Gary Armstrong, Anwar Habib, Ahmed Tolba Presentation prepared by Annelie Moukaddem Baalbaki CHAPTER FOURTEEN Managing Marketing Channels Lecturer: Insert your name here Ch 14 -# Copyright © 2011 Pearson Education Chapter Learning Outcomes Topic Outline 12.1 Supply Chains and the Value Delivery Network 12.2 The Nature and Importance of Marketing Channels 12.3 Channel Behavior and Organization 12.4 Channel Design Decisions 12.5 Channel Management Decisions 12.6 Marketing Logistics and Supply Chain Management Ch 14 - 1 Copyright © 2011 Pearson Education Supply Chains and the Value Delivery Network Supply Chain Partners 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. Ch 14 - 2 Copyright © 2011 Pearson Education The Nature and Importance of Marketing Channels How Channel Members Add Value Marketing Channels (distribution channels): A set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user. Ch 14 - 3 Copyright © 2011 Pearson Education The Nature and Importance of Marketing Channels How Channel Members Add Value Transform the assortment of products into assortments wanted by consumers Play a role in matching supply and demand Add value by bridging the major time, place, and possession gaps that separate goods and services from those who would use them Ch 14 - 4 Copyright © 2011 Pearson Education The Nature and Importance of Marketing Channels Ch 14 - 5 Copyright © 2011 Pearson Education The Nature and Importance of Marketing Channels How Channel Members Add Value Ch 14 - 6 Copyright © 2011 Pearson Education  Channel Behavior and Organization Channel Behavior Channel conflict refers to disagreement over goals, roles, and rewards by channel members. 1. Horizontal conflict 2. Vertical conflict Ch 14 - 7 Copyright © 2011 Pearson Education  Channel Behavior and Organization Vertical Marketing Systems Vertical marketing systems (VMSs) provide channel leadership and consist of producers, wholesalers, and retailers acting as a unified system. We look at 3 types of VMSs: Corporate marketing systems Contractual marketing systems Administered marketing systems Ch 14 - 8 Copyright © 2011 Pearson Education Channel Behavior and Organization Horizontal Marketing System 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. Ch 14 - 9 Copyright © 2011 Pearson Education Channel Behavior and Organization Multichannel Distribution Systems 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. Ch 14 - 10 Copyright © 2011 Pearson Education Channel Behavior and Organization Ch 14 - 11 Copyright © 2011 Pearson Education Channel Behavior and Organization 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. Ch 14 - 12 Copyright © 2011 Pearson Education