Presented by,

Nilanjan Paul

MARKETING CHANNEL SYSTEMA marketing channel system is the particular set of interdependent

organizations involved in the process of making a product or service available

for use or consumption.

VALUE NETWORK

A value network is a system of partnerships and alliances that a firm creates

to source, augment and deliver its offerings. A value network includes a firm’s

suppliers and its suppliers’

suppliers, its immediate customers and their end customers.

Marketing Channel and Value Network

PUSH STRATEGY

A push promotional strategy involves taking the product directly to the customer via

whatever means, ensuring the customer is aware of your brand at the point of

purchase.

"Taking the product to the customer“.

EXAMPLES: Direct selling to customers in showrooms or face to face.

PULL STRATEGY

A pull strategy involves motivating customers to seek out your brand in an active

process.

"Getting the customer to come to you“.

EXAMPLES: Advertising and mass media promotion, Word of mouth referrals.

Channel and Marketing Decisions

=> 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 online and offline

purchases.

Buyer Expectations for Channel

Integration

Habitual shoppers

They purchase from the same places in the same manner over time.

(e.g.:- customers of BIG BAZAAR )

High value deal seekers

They know their needs and channel surf a great deal before buying at the

lowest possible price. (e.g.:- customers of SNAPDEAL,FLIPKART)

Variety-loving shoppers

They gather information in many channels, take advantage of high touch

services and then buy in their favorite channel regardless of price.

(e.g.:- customers of SHOPPERS STOP)

High-involvement shoppers

They gather information in all channels, make their purchase in the low cost

channels but take advantage of customer support from a high touch channel.

(e.g.:- buyers of local market)

Categories of Buyers

Service/quality customers

They care most about the variety and performance of products in

stores as well as the service provided.

(E.G:- buyers of i-Phone)

Price/value customers

They are price sensitive and are mostly concerned about spending

their money wisely.

(E.G:- buyers of Micromax)

Affinity customers

They primarily sort stores that suited people like themselves or the

members of groups they aspired to join.

(E.G:- customers aspiring test drive before buying vehicle)

Types of Shoppers

CHANNELS OF DISTRIBUTION

e.g.:- Dell

e.g.:- Big Bazaar

e.g:- ITC

e.g:- HUL

INDUSTRIAL MARKETING

CHANNEL

=> Analyze customer needs

=> Establish channel objectives

=> Identify major channel alternatives

=> Evaluate major channel alternatives

Designing A Marketing Channel

System

=> Selecting channel members

=> Training channel members

=> Motivating channel members

=> Evaluating channel members

=> Modifying channel members

Channel Management Decisions

i) Pure-click companies

ii)Brick and Click companies

iii) M-Commerce

i)PURE CLICK COMPANIES:-

Pure click companies are companies, which have their business

segments only in online markets.

the most prominent companies are eBay and amazon. these

companies have only an online model and no offline model.

eBay does not sell products offline and neither does amazon.

ii)BRICK AND CLICK COMPANIES:-

A brick and click is a store that allows you to either shop at their

physical location, or on their online store. Ex: Wal-Mart

iii) M-COMMERCE:

The use of wireless handheld devices such as cellular

phones and laptops to conduct commercial

transactions online. Mobile commerce transactions

continues to grow, and the term includes the purchase

and sale of a wide range of goods and services, online

banking, bill payment, information delivery and so on.

Also known as m-commerce.