Halden Zimmermann: Philip Kotler Marketing Summary, Chapters 15 and 16 pt 2

Furthermore, in order to maintain the efficiency among channels, the design needs to be modified based on the recent developments and evolution. It could be expanded globally based on the success of the company. There are three types of integration among marketing channel systems. Firstly, vertical marketing system is the one in which producer, wholesaler and retailer act as a unified system. Secondly, horizontal marketing system involves two or more unrelated companies joining hands to exploit an emerging opportunity. Lastly, it is the integrated multi channel system which combines the efficiency of more than one system.halden zimmermann

The marketing channels are subject to conflicts and challenges due to the changing market conditions. The conflicts in the channels could result from various sources which include: goal incompatibility, unclear roles and rights, differences in perceptions and dependency of intermediaries on manufacturers. There are several ways to cope up with these conflicts and challenges. For instance, strategic justification, joint memberships, super ordinate goals etc. Companies should consider the ethical and legal considerations when making decisions regarding the marketing channels.

The latest evolution and development experienced is the growing trend of E-commerce. It allows companies to transact or sell their products and services online to customers. It is considered as a cost saving and quick way of accessing a large audience. Companies are adopting a brick and click marketing channel system based on e-commerce. A more advanced approach is the m-commerce approach of marketing system. As there are more mobile phones and smart phones, hence online distribution and selling is promoted on the move. It is fruitful for marketers to develop strategies about marketing channel systems based on the advanced and updated tactics and policies which ensure satisfaction and value to customers.

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