What is marketing channel system and value network

What is a marketing channel

system and value network ?

Designing and managing integrated

marketing channels

SHUBHAM VERMA

IIT GUWAHATI

What is a marketing

channel ?

Marketing Channels are set independent organizations participating in the

process of making a product or service available for use . These are

PATHWAYS that a product follows to reach a customer

Different types of intermediaries

Merchants Agents Facilitators

Retailers Wholesalers Brokers Sales Agents Banks Transport

Advertising

Agencies

Main function of intermediaries is to convert

Potential

buyer

Profitable

customer

Managing intermediaries

Used in case of LOW BRAND

LOYALTY

Choice is made in store

Use of sales force

and promotion

money

Used in case of HIGH BRAND

LOYALTY

Choice is made before

coming to store

Use of Advertisements

and promotion

PUSH PULL

HP uses sales force to sell to large accounts ,

outbound telemarketing to sell to medium –

sized accounts , direct mail with an inbound

number to sell to small accounts , retailers to

sell to still smaller accounts and the Internet

to sell speciality items.

This is called MULTICHANNEL MARKETING.

to CREATE value , you need to DELIVER value

A

Apple Developer Connection

50,000 members

Members create iPhone apps

Revenue distribution – Developer ->70%

Apple ->30%

Oracle Discussion Forum

5.2 million developers

400,000 discussion thread

Helps to advance in products

These are VALUE NETWORKS

What are

Value

Networks ?

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 immediate

customers , their end customers , university researchers

and government approved agencies

"These slides were created by Shubham Verma( IIT Guwahati ) as part of an internship done under the guidance of Prof. Sameer Mathur(www.IIMInternship.com)"