Integrated Marketing Channels

Prepared By, Sagar Gadekar

 Better Co-ordination.  Degree of Integration.  Reduce the Uncertainty.Importance of Channel Integration Bridge the Gap.  Streamline the Physical and Information.  Barrier of other Competitors.  Better Management. cost and Risk.  .  Reduces the Levels of Opportunism.

(HMS) Vertical Marketing Systems.    Horizontal Marketing Systems.Types of Channel Integration.(VMS) Multi channel Distribution Systems/ Hybrid Marketing System. .

Disadvantages of VMS The integration of business may result in problems related to size such as lack of coordination.(HMS)   Advantages of HMS Horizontal integration of related businesses allows them to achieve economies of the scale by selling more of the same product through geographic expansion. Conflicts between members.Horizontal Marketing Systems. and reduction in the cost of international trade by operating factories in foreign countries.      . Decrease in Flexibility. Horizontal marketing system includes the economies of the scope through synergies achieved by sharing of resources common to different products.

 It improves distribution efficiency by combining the efforts of individual channel members. bargaining power and eliminating of duplicating services can be achieved.Vertical Marketing Systems   Advantages of VMS It is easier to control channel behavior.  The economies of scale through the size.  It is easier to eliminate conflicts that results when independent channel members pursue their own objectives. .

 More Customized Selling.  Degree of Freedom.  Disadvantages  More channel conflicts.Multi channel Distribution Systems/ Hybrid Marketing System.  Increase in Market Coverage. .  Advantages.  Lower Channel Cost.  Problem in Controlling.  Non cooperation among the different channel.

Consumers Goods      Channel Alternatives for Consumer Goods. Producer – Consumer (0 level Channel). Producer –Retailer– Consumer (1 Level) Producer– Wholesaler– Retailer– Consumer(2Level) Producer –Agent– Wholesaler—Retailer— Consumer (3 Level) Producer—Wholesalers –Agent—Jobbers— Retailers– Consumers (4 Level)  .

.Industrial Goods      Producer – User. Producer—Agent—Industrial Distributors— User. Producer –Industrial Distributor—Reseller— User. Producer– Agent– User. Producer– Industrial –User.

Producer– Consumer.  Produces – Agent– Consumer.Channel Alternative for Services.  .

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