Unit-III

DELIVERING VALUE
Integrated marketing

• Integrated marketing is an approach that uses different forms of media, called

channels, to tell a story or convey an idea.

• An integrated marketing campaign might start with a TV ad featuring a

memorable character.

• Integrated marketing offers you the opportunity to engage with c

• integrated marketing channels to make the most of  your marketing efforts and
to help you know what is working, and what isn't.
Boosting offline events with digital

• Maybe you have an open-house, are hosting a seminar, are

featuring specials or discounts, or have some event going on at your
business.

• There are lot of different ways you can integrate your marketing
efforts to increase the attendance, and business, from these events.

• Customers more deeply than is possible with traditional marketing.

• Show off great customer service online

• When customers are researching companies, whether B2B or B2C, one of the
biggest trust factors is seeing a lot of rave reviews from other customers.

• This helps to ease their mind and drive them towards choosing your business
over another.

• Your customer service team should be well-trained and aware that anything that
they do or say could lead to a good or bad review online
Increase conversions by integrating marketing channels

• Everyone wants more conversions on their site, and by creating a

better user experience with good calls to action, referral traffic,
posting more content on industry sites and blogs, and consistently
sharing on social media, you can increase the amount of visitors to
your site and potentially the conversion rate as well.
Integrating marketing channels

Types of Channel Integration.

• Horizontal Marketing Systems.(HMS)

• Vertical Marketing Systems.(VMS)

• Multi channel Distribution Systems/ Hybrid Marketing System.

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.

• Horizontal marketing system includes the economies of the scope through

synergies achieved by sharing of resources common to different products, and

reduction in the cost of international trade by operating factories in foreign

countries.
Disadvantages of VMS

The integration of business may result in problems related to size such

as lack of coordination.

Conflicts between members.

Decrease in Flexibility.
Vertical Marketing Systems

Advantages of VMS

• It is easier to control channel behavior.

• It is easier to eliminate conflicts that results when independent channel members

pursue their own objectives.

• It improves distribution efficiency by combining the efforts of individual

channel members.

• The economies of scale through the size, bargaining power and eliminating of
duplicating services can be achieved.
Multi channel Distribution Systems/ Hybrid Marketing System.

Advantages.

• Increase in Market Coverage.

• Lower Channel Cost.

• More Customized Selling.

Disadvantages

• More channel conflicts.

• Problem in Controlling.

• Degree of Freedom.

• Non cooperation among the different channel.

Marketing Channel

• A Marketing channel is a path that goods or services take as they travel from

producer to consumer.

• Marketing channels play a critical role in the success of a business, and many

different types can be utilized.

• It aims to help businesses introduce their product or service offerings to potential

customers so that they can make sales. 

Important of Marketing Channels

• Marketing channels are important because they provide businesses

with a way to reach their target market segment and connect with

potential customers.

• Before an organization can release a product or service to the

public, it must create a marketing mix that covers all four bases:

product, price, place, and promotion.

Some of the reasons behind the importance of marketing channels are-

1. Optimizes reach

2. Builds relationships

3. Generates leads

4. Encourages purchases

5. Provides customer support

Types of Marketing Channels

There are 11 Different types of Marketing Channels

1. Direct selling
• businesses sell products or services directly to customers without using intermediaries.

2. Catalog direct
• businesses send catalogs with product information directly to customers

3. Network marketing
• businesses use a network of independent contractors to promote and sell their products or
services. Network marketing is also known as multi-level marketing (MLM) or direct
selling.
4. Value-added resale

• Businesses add value to products before selling them to customers. Value-added reselling can involve
adding features or services to a product, bundling products together, or simply offering a higher level of
customer service.

5. Digital advertisements

• businesses use online platforms to advertise their products or services. Digital advertising can use many
digital channels, such as banner ads, search engine marketing, pay-per-click (PPC) ads, or sponsored
posts.

6. Events

• businesses host or participate in events to promote their products or services. Some of such traditional
marketing channels can be trade shows, conferences, conventions, or simply customer appreciation days.
7. SEO marketing

• Businesses use search engine optimization (SEO) to improve their

visibility in search engine results pages (SERPs).

8. Email marketing

• Businesses send promotional or transactional emails to customers.

• Email Marketing can be used to build relationships, promote

products or services
• 9. Referral marketing

• Businesses use customer referrals to promote their products or services.

• Referral marketing strategies can involve customers referring friends or family members

10. Public relations

• Businesses use publicity to promote their products or services.

• Publicity can involve getting featured in the news, writing press releases, or doing media
interviews.

11. Indirect marketing

• Indirect marketing is a type of marketing channel where businesses use third-party

platforms to promote their products or services.
 Channel Functions and Flows

• A marketing channel performs the work of moving goods from producers

to consumers. It overcomes the time, place, and possession gaps that
separate goods and services from those who need or want them.

• Some of these functions (storage and movement, title, and

communications) constitute a forward flow of activity from the company
to the customer; others (ordering and payment) constitute a backward
flow from customers to the company.
Channel Levels

• Channel level refers to the intermediary in marketing distribution channel between the producer/manufacturer and

the end consumer. Every channel level plays a role in making the good available to the end consumer. The number

of channel levels between the producer and consumer could be 0,1,2,3 or more.
Types of Channel Levels
• There are typically 3 types of channel levels:
Zero Level
• A zero level channel is a direct marketing channel where there is no intermediary and the producer sells directly to
the consumer. For example – direct mails, telemarketing etc.
One Level
• A one level channel has one intermediary, typically a retailer between a manufacturer and consumer.
Multi Level - 2 Level or 3 Level
• Similarly a 2 level channel and a 3 level channel have 2 and 3 intermediaries respectively e.g. Distributors,
Wholesales, Retailers etc.
Service Sector Channels

• Many of the most successful new banks, insurance and travel companies, and stock
brokerages have emerged with strictly or largely online operations.

• Marketing channels also keep changing for “person marketing."

• Besides providing live and programmed entertainment, entertainers, musicians, and other
artists can reach fans online in many ways—through their own Web sites, on social
community sites such as Facebook and Twitter, and through third-party Web sites.

• Nonprofit service organizations such as schools develop education and hospitals develop
health-delivery systems.

• These institutions must figure out agencies and locations for reaching a far-flung population
Channel design
• Those decisions involving the development of new
marketing channels where none had existed before, or the
modification of existing channels.

• Channel design is presented as a decision faced by the

marketer, and it includes either setting up channels from
scratch or modifying existing channels.
Channel Decision 1: What does the customer want?

• The direction of analysis would be how the customer views the product from
the point of view of the channel.

Customers' Expectations from Marketing Channels.

• Speed of delivery.

• Ease of delivery: Amazon and Flipkart are prime examples of this.

• Variety in products

• Ease of Service 
Channel Design Decision 2: Establish Objectives & Constraints in Channel
design

The primary objective would be that channel should be delivering maximum

service output at a minimal price.

The secondary considerations of channel design decisions. They are:

• Macroeconomic conditions.

• Legal restrictions
Channel Design Decision 3: Identifying Channel Alternatives

• The feasibility of maintaining all these channels is often seen to be

doing more harm than good.

• Companies usually choose from the diverse channels and narrow

down a particular combination of a few of them so that their product
or service reaches a varied segment of buyers
Channel Management Decisions

• The success of any marketing channel lies in the foundation of right

channel design decision.

• But channel design is just the planning part; it needs right implementation
to be successful.

• The implementation can be taken care of, with the help of channel
management decisions, it includes right from, selecting a channel member
to training them to motivating them and to evaluating them on their
performance.
Channel Management Decisions Steps

• Step # 1. Selecting Channel Members

• Step # 2. Training Channel Partners

• Step # 3. Motivating Channel Members

• Step # 4. Evaluating Channel Members

• Step # 5. Modifying Channel Arrangements

Channel Integration
Channel integration is essentially the idea of combining efforts across different
customer channels such as:

• Radio

• TV

• Printed media

• Internet

• Direct mailing

• Call center operations

• Integration means making these channels work well together,
making them complement each other and making sure that
customers have the same experience, regardless of the channel that
they use.

• There are also channel integration services for businesses that look
at price, promotions, inventory and other factors in managing
channel integration.
E commerce marketing Practices

• Ecommerce marketing is the process of making potential customers

aware of your online products or services and then prompting them to
convert.

• E commerce and digital marketing are the methods of making sales

and increasing awareness about your brand and product offerings.

• Some e commence marketing practices including email marketing,

SEO, PPC, and display advertising.
• Since ecommerce websites are visual, businesses need to show off
products in a unique way that draws the eye.

• Ecommerce marketing offer brands a unique opportunity to connect

and engage naturally with audiences and drive revenue by fitting into
people’s regular, digital lives.
M-Commerce

• Business transactions conducted by using a mobile electronic device (such as a

cell phone)

• M-commerce is the use of handheld, wireless gadgets such as mobile phones,

tablets and personal digital assistants to perform online commercial
transactions.

• Many businesses can use m-commerce, including the event ticketing,

healthcare, finance, gaming, hospitality, retail and banking industries
• Mobile friendly marketing, you can use many of the features of normal
internet marketing to connect with potential customers such as:

• text

• images

• audio

• recorded video

• streaming video

• M-commerce conflict, cooperation and competition