11. Designing and Managing Integrated Marketing Channels






Companies need to transform their supply chain into a value network to create partnerships and value during the production, purchasing, and selling of products. The primary goal of value networks is to increase productivity, revenue, and cost reduction. In the 21st century, companies are adopting online procurement processes to streamline the procurement process. Marketing channels are essential for companies to supply their products to customers and provide valuable data for understanding customers and competitors. They can also be beneficial for organizations not aiming for profit, such as hospitals and firefighters.



Designing and managing marketing channels requires understanding customer preferences, considering the company's overall objectives, and deciding on the appropriate channels of communication. Companies should focus on operational value, cost-effectiveness, and flexibility. Once a channel is designed, it is crucial to manage it properly, monitor it closely, and adjust it as needed.





Holistic marketers are increasingly adopting a value network view, examining the entire supply chain that links raw materials, components, and manufactured goods to final consumers. Marketing channels, also known as trade or distribution channels, are interdependent organizations that make a product or service available for use or consumption.  The importance of channels lies in the decision-making process of managing intermediaries, which can be push or pull. A push strategy uses the manufacturer's sale force or trade promotion money to induce intermediaries to sell the product, while a pull strategy uses advertising and communications to persuade consumers to demand the product from intermediaries. 


Hybrid channels or multichannel marketing involves a single firm using two or more marketing channels to reach different customer segments. Each channel targets different buyer segments or need states, delivering the right products in the right places, at the least cost. Companies must ensure that their multiple channels work well together and match each target segment's preferred business practices.




Designing and managing integrated marketing channels. (n.d.). Marketing Management and Analysis. https://ayemyomyintaung.blogspot.com/2013/02/designing-and-managing-integrated.html

Parkin, G. (2023, December 12). What is a marketing channel system and value network? Go Promotional Branded Merchandise Blog. https://www.gopromotional.co.uk/blog/what-is-a-marketing-channel-system-and-value-network/


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