s 2015 chap 10 marketing channel 2014-5
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10
Copyright 2011 Pearson Education
Case Study: Ikea
IKEAs vision is, to create a better i!e !or the "any peope#$ %ith such
a "agnani"ous vision, strangey enough, IKEAs core !ocus on
price#It beieves that i! it can design styish, &uaity, and !unctiona
!urniture and househod ite"s around a o' price point, that this
'i "a(e "ore things avaiabe to "ore peope, thus i"proving
i!estyes#
http://www.youtube.com/watch?v=VYr6JlJ1wlEhttp://www.youtube.com/watch?v=VYr6JlJ1wlE -
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)uppy Chains
* Producing and "a(ing products avaiabe to
buyers re&uires buiding reationships 'ith
upstrea" and do'nstrea" suppy chain
partners* Upstream+ir"s that suppy the ra' "aterias,
co"ponents, parts, and other ee"ents
necessary to create a product or service
* Downstream -de"and chain.+ /ar(eting
channe partners that in( the !ir" to the
custo"er
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aue eivery et'or(
* et'or( co"posed o!
the co"pany,
suppliers,
distributors, anduti"atey customers
'ho partner to hep
the entire syste"
deiver bettercusto"er vaue
10 - 4
In making and marketing its
many models, onda manages ahuge net!ork o" #eo#le !ithinonda #lus thousands o"su##liers and dealers outside the$om#any !ho !ork together to%ring value to &nal $ustomers
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/ar(eting Channes
* )et o! interdependent organi3ations that
hep "a(e a product or service avaiabe
!or use or consu"ption by the consu"er
or business users
* /ar(eting channe decisions+
* A!!ect other "ar(eting decisions, such as
pricing or product design
* Can ead to co"petitive advantage
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Channe /e"bers Add aue4 inter"ediaries can provide econo"ies
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irect s Indirect /ar(eting Channes
u"ber o! Channe 5eves
McDonald,
Tutorial
School,
Disne land
Crest, Del
Monte,
BMW,
Kodak
Crest, Del
Monte
Intel, IBM
Direct Indirect Direct Indirect
en!th
o" mkt!channel
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4 - *
/utichanne istribution )yste"s
Multichannel Distribution Systems#o!ten caedhybridmarketing
channels$% 6ccurs 'hen a singe !ir" sets up t'o or "ore "ar(eting
channes to reach one or "ore custo"er seg"ents#
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iscussion 7uestion
%hy "ight a
co"pany i(e e
have severatypes o! channes
incuding direct
'hie I(ea ony
retais8
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9o' can /ar(eting inter"ediaries Add aue8
:o irect or Indirect or
;oth8
* ro" the producers
point o! vie', agreater nu"ber o!
eves "ean ess
contro and greater
channe co"pe
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Channe Con!icts
&'(le)en *ranchees More common, e!+ ike
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Channe Con!ict
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In re$ent years,urger .ing has
had a steadystream o"$on/i$ts !ith its
"ran$hised dealersover everything"rom advertising
$ontent to the
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Conventiona vs ertica /ar(eting )yste"s
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=ypes o! ertica /ar(eting )yste"s
e#g# =op)hop, >ara
e#g# I(ea, /conad
e#g# P?:, %eco"e, Par(n)hop, Kra!t
https://www.youtube.com/watch?v=9n0mikF1Eswhttps://www.youtube.com/watch?v=1DceLKoNyTIhttp://www.bbc.co.uk/news/business-11387544http://www.bbc.co.uk/news/business-11387544https://www.youtube.com/watch?v=1DceLKoNyTIhttps://www.youtube.com/watch?v=9n0mikF1Esw -
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ranchising )yste"s
10 - 1'
lmost every kind o"%usiness has %een"ran$hised"rom motels and"ast-"ood restaurants to
$leaning and handyman$om anies
* A contractua
vertica "ar(eting
syste" in 'hich achanne "e"ber,
caed a !ranchisor,
in(s severa
stages in theproduction4
distribution process
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=ypes o! ranchises
* ranchising in
9K
* E#g# A@isen4
a"en, Ange;eauty, Century
21 ea Estate,
y"oc(s
* u ist athttp+BB'''#!ranch
ise#org#h(B!oh(a#
asp
http://www.franchise.org.hk/fohka.asphttp://www.franchise.org.hk/fohka.asphttp://www.franchise.org.hk/fohka.asphttp://www.franchise.org.hk/fohka.asphttp://www.franchise.org.hk/fohka.asphttp://www.franchise.org.hk/fohka.asp -
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4 -1)
9ori3onta /ar(eting )yste"s
-ori.ontal marketin!
system is a channe
arrange"ent in 'hich t'o or
"ore co"panies at one
eve @oin together to !oo' a
ne' "ar(eting opportunity#
*e#g# /conad at D)C6 M$Donald2s no! #la$ese#ress5 versions o" theirstores in 6almart stores
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4 -1*
/utichanne istribution )yste"s
* A singe !ir" sets up t'o or "ore "ar(eting
channes to reach one or "ore custo"er
seg"ents
* Each ne' channe e
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isinter"ediation
* 6ccurs 'hen
product and
service producers
cut outinter"ediaries or
dispace traditiona
reseers 'ithradica ne' types
o! inter"ediaries
10 - 1+
voiding disintermediation#ro%lems: 7ender2s 6e% site#rovides detailed #rodu$tin"ormation re"ers them to itsresellers2 6e% sites and stores
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4 -0
iscussion+
Changing Channe 6rgani3ation
* In 'hat types o!
industries do 'e see the
"ost disinter"ediation8
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Channe esign ecisions- Customer Value Delivery Networks
Marketin! channel desi!n incudes designing e!!ective "ar(eting
channes by
1# anay3ing consu"er needs,
2# setting channe ob@ectives,
F# identi!ying "a@or channe aternatives -type, roes, responsibiities.,
G# u"ber o! "ar(eting inter"ediates,
H# evauating the"
# esigning Internationa istribution Channes -eg Avon in China.
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F )trategies o! Channe esign
*MC/ ' Coca'Cola, 01/
Delu2e products ' 3ole2
Durable products
' Whirlpool
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Channe esign ecisions
* Evauating the "a@or aternatives invoves
co"paring each aternative to+
* Econo"ic criteria
* Contro issues
* Adaptive criteria
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Channe /anage"ent ecisions
* )eecting channe
"e"bers
* /anaging and
"otivating channe
"e"bers+
* Partner reationship
"anage"ent* Evauating channe
"e"bers
10 - '
Cater#illar !orks $losely !ith its!orld!ide net!ork o"inde#endent dealers to &nd%etter !ays to %ring value to$ustomers
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4 -(
=odays )u""ary
* E
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ot covered areas
* Desi!nin! International Distribution
Channels #p+445'446$
* 0UBIC 07IC8 9D DIST3IBUTI7
D(CISI7S #p+44&$
* M93K(TI/ 7/ISTICS 9D SU008
C-9I M99/(M(T #p+44:'465$