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15

Designing and

Managing

Integrated

Marketing

Channels

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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-2

What is a Marketing Channel?

A marketing channel system is the

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Channels and

Marketing Decisions

 A push strategy uses the manufacturer’s

sales force, trade promotion money, and other means to induce intermediaries to

carry, promote, and sell the product to end users

 A pull strategy uses advertising, promotion,

and other forms of communication to

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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 15-4

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Buyer Expectations for

Channel Integration

 Ability to order a product online and pick it up

at a convenient retail location

 Ability to return an online-ordered product to a

nearby store

 Right to receive discounts based on total

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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-6

Table 15.1 Channel Member

Functions

 Gather information

 Develop and disseminate persuasive

communications

 Reach agreements on price and terms  Acquire funds to finance inventories  Assume risks

 Provide for storage

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Figure 15.1 Marketing Flows

in the Marketing Channel

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Figure 15.2 Consumer Markets

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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-10

Number of Intermediaries

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Channel-Management Decisions

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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 15-12

Channel Conflict

 What types of conflict arise in channels?  What causes conflict?

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Causes of Channel Conflict

 Goal incompatibility

 Unclear roles and rights  Differences in perception

Figure

Figure 15.1 Increasing Efficiency
Figure 15.1 Marketing Flows  in the Marketing Channel
Figure 15.2 Consumer Markets
Figure 15.2 Industrial Markets

References

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