SLIDE 1
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INTRODUCTION
- If we think of marketing as a value creating
and exchanging process, functioning within an integrated, seamless organisational unit, then:
- Good distribution are essential to physically
SECTION 5 Distribution channels www.regenesys.co.za INTRODUCTION - - PowerPoint PPT Presentation
SECTION 5 Distribution channels www.regenesys.co.za INTRODUCTION - - PowerPoint PPT Presentation
SECTION 5 Distribution channels www.regenesys.co.za INTRODUCTION If we think of marketing as a value creating and exchanging process, functioning within an integrated, seamless organisational unit, then: Good distribution are essential to
SLIDE 2
SLIDE 3
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CREATING CUSTOMER VALUE
- An individual company cannot create and
deliver customer value all by itself
- It must work within a larger network of
partners – a value delivery network – to accomplish this task
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MARKETING CHANNELS AS VALUE DELIVERY NETWORKS
- “A value delivery network is made up of the
company, suppliers, distributors and ultimately customers who partner with each
- ther to improve the performance of the
entire system” (Kotler and Armstrong, 2016:277).
- “A marketing (or distribution) channel is a
set of interdependent organisations that help make a product or service available for use or consumption by the consumer or business user” ibid
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IMPORTANCE OF MARKETING CHANNELS
- Not many producers sell their goods directly
to final users
- Instead, most use intermediaries, such as
retailers, to bring their products to market
- A company’s channel decisions have far-
reaching, direct impacts on every other marketing decision
- A company’s pricing structure is a direct
- utcome of who it selects as channel
partners
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IMPORTANCE OF MARKETING CHANNELS
- Unlike the flexibility and control that
marketers have over pricing decisions, distribution channel decisions often involve long-term commitments to other firms
- Value adding functions of channel members
- Transactional
- Logistical
- Facilitating
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TYPES OF MARKETING CHANNELS FOR B2B MARKETS
- A product or service can follow various
possible routes from its producer to the final consumer or business customer
- Marketers have to find the most efficient
channel from the alternatives available
- Number of channel members
- Multichannel distribution systems
- Disintermediation
- Answer the questions in your guide on
Tesla’s marketing channel strategy
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PLANNING A B2B MARKETING CHANNEL STRATEGY
- Channel design
- Channel coverage
- Intensive
- Selective
- Exclusive
- Channel management decisions
- Selecting suitable channel partners
- Managing and motivating channel partners
- Evaluating channel partners
- Remember to complete the activities in your