Designing and Managing Value Networks and Channel
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This document discusses marketing channels and strategies. It defines a marketing channel system as the set of organizations involved in making a product available for use. It also discusses push and pull promotional strategies, with push taking the product directly to customers and pull motivating customers to seek out the brand. The document then covers buyer expectations for channel integration, categories of buyers like habitual and deal-seeking shoppers, and types of shoppers like service-oriented and price-sensitive. It concludes with discussing pure-click, brick-and-click, and mobile commerce business models.
Designing and Managing Value Networks and Channel
- 2. MARKETING CHANNEL SYSTEM A 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
- 3. 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
- 4. => 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
- 5. 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
- 6. 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
- 7. CHANNELS OF DISTRIBUTION e.g.:- Dell e.g.:- Big Bazaar e.g:- ITC e.g:- HUL
- 9. => Analyze customer needs => Establish channel objectives => Identify major channel alternatives => Evaluate major channel alternatives Designing A Marketing Channel System
- 10. => Selecting channel members => Training channel members => Motivating channel members => Evaluating channel members => Modifying channel members Channel Management Decisions
- 11. i) Pure-click companies ii)Brick and Click companies iii) M-Commerce
- 12. 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
- 13. 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.