MARKETING MANAGEMENT:

MARKETING CHANNEL (PLACE)

Bunga Aprigati Iskandar, SEI., MSc.

 MARKETING CHANNEL

• Sets of interdependent organizations participating in the process of making a

product or service available for use or consumption. (distribution, place)
• The objectives is to make products available in the right place at the right time
in the right quantities.
 INTEGRATING MULTICHANNEL
MARKETING SYSTEM

• The strategies and tactics of selling through one channel reflect the strategies
and tactics of selling through one or more other channel.
• Multichannel marketing – using two or more marketing channel to reach
customer segment in one market.
• Companies pursue to reach omnichannel marketing, in which multiple
channels work seamlessly together and match each target customer’s
preferred ways of doing business, delivering the right product information and
customer service regardless of whether customers are online, in the store, or
on the phone.
 CHANNEL FUNCTIONS

• Provide link between production and consumption

• To gather market information
• Communicate promotional offers
• Find and communicate with prospective buyers
• Physical distribution – transporting and storing
 PLACE MIX

Physical Distribution Channel of Distribution

• Order process • The network of individuals

• Transportation and institutions that helps to
• Warehouse establish frequent contact
with the customers.
• Inventory control
• Various essential linkages
between manufacturers and
intermediaries and end-users
 MULTICHANNEL MARKETING

Advantage Disadvantage
Cooperation and control conflict and
To increase market coverage
problem

Lower channel cost

The ability to do more customized

selling
 CHANNEL LEVELS

Manufacturer Consumer

Manufacturer Retailer Consumer

Manufacturer Wholesaler Retailer Consumer

 CHANNEL DESIGN DECISION

Establishing
Evaluating major
objectives and
• Lot size • Type of intermediaries channel alternatives
constraints
• Waiting and delivery • Number of
time • Channel objectives intermediaries • Economic
vary with product • Control and adaptive
• Product variety characteristics • Term and
responsibility criteria

Analyzing customer Identifying major

needs and wants channel alternatives
 NUMBER OF INTERMEDIARIES

Exclusive Distribution Selective Distribution Intensive Distribution

• Severely limited • A company relies on a • To distribute the goods or
number of few exclusively chosen services in as many
outlets as possible.
intermediaries. retail outlets in a
specific geographical
area.
 WHY USE INTERMEDIARIES?

Consolidation
Better use of
Geography of small orders
resource
into large ones

Lack of
retailing Segmentation
expertise
FACTORS TO CONSIDER…

The product
The market
The business
The environment
 E-COMMERCE MARKETING

Usage of website to facilitate Types of e-commerce

Main aspects:
the sale of products online. marketing

Customer interaction with the website Pure click company (shopee, amazon)

Delivery Brick and click company (zara, apple)

Ability to address the problems

 CHANNEL CONFLICTS

Horizontal channel conflict

• Between channel members at the same level

Vertical channel conflict

• Between different level of channel

Multichannel conflicts

• When two or more channels sell to the same market

 CAUSE OF CHANNEL CONFLICT

• Goal incompatibility
• Unclear roles and rights
• Differences in perception
• Intermediaries’ dependence on the manufacturer
 MANAGING CHANNEL CONFLICT

Strategic Dual Superordinate Employee

justification compensation goals exchange

Diplomacy,
Joint
Legal recourse mediation, or Co-optation
memberships
arbitration