What is a marketing channel system and value network?
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Marketing channels refer to the intermediaries between producers and final users that constitute a distribution channel. A firm's marketing channel system involves decisions about which intermediaries to use to convert potential buyers into profitable customers. A firm can use either a push strategy, employing sales forces and trade promotions to induce intermediaries to sell to end users, or a pull strategy, using advertising to persuade consumers to demand the product from intermediaries. Large companies employ both push and pull strategies skillfully across multiple marketing channels.
What is a marketing channel system and value network?
- 1. What is Marketing Channel System and Value Network ?
- 2. Intermediaries between producers and final users constitute a marketing channel or trade channel or distribution channel.
- 3. set of marketing channels a firm employs, and decisions about it
- 4. Marketing channels chief role is to convert potential buyers into profitable customers.
- 5. In managing its intermediaries, the firm uses the combination of the following types of marketing :
- 6. Push strategy uses manufacturer’s sales force, trade promotion money to induce intermediaries to carry, promote and sell product to end users.
- 7. Created by NILESH RANA of IIT BHU under the guidance of Prof. SAMEER MATHUR , IIM LUCKNOW www.iiminternship.com Thank you !
- 8. In Pull strategy, manufacturer uses advertising, promotion etc. to persuade consumers to demand product from intermediaries.
- 9. Top marketing companies like CocaCola and Nike skilfully employ both push and pull strategies.
- 10. Philips, one of the world’s biggest electronics companies use multichannel marketing to get access to even the most remote customers. The company offers broad range of products through : Mass merchants Retail chains Speciality chain stores Via web Via online retailers Small stores
- 11. Value network - a system of partnerships and alliances that a firm creates to source , augment, and deliver its offerings.
- 12. Apple Developer’s connection which has 50,000 members keep 70% of any revenue their products generate, and Apple gets 30%.
- 13. Company can estimate whether more money is made upstream or downstream, in case it can integrate forward or backward. Through Demand chain planning :
- 14. Company is more aware of the disturbances in the supply chain that might change costs, prices or
- 15. Companies can go online with their business partners to speed communications, transactions, and payments; reduce costs and increase accuracy.