designing and managing integrated marketing channels · 2018-10-13 · designing and managing...
Post on 11-Aug-2020
17 Views
Preview:
TRANSCRIPT
Designing and Managing
Integrated Marketing Channels
OVER THE PAST THREE DECADES, THE OVERWHELMING
EMPHASIS IN THE MARKETING MIX HAS BEEN ON:
PRODUCT STRATEGY WITH
PRICING STRATEGY
AND PROMOTIONAL STRATEGY
ALSO BEING STRESSED.
BUT.....
MARKETING CHANNEL STRATEGY (PLACE);
THE FOURTH “P” IN THE MARKETING MIX HAS
BEEN LARGELY NEGLECTED
BUT THIS IS CHANGING....
MARKETING CHANNEL STRATEGY IS
GROWING IN IMPORTANCE, WHY?
REASONS
Search for Sustainable Competitive Advantage
Growing Power of Retailers in Marketing
Channels
The Need to Reduce Distribution Costs
The Increased Role and Power of Technology
MARKETING CHANNELS
The Internal (Own Sales force) or External(all
kind of channel partners) organizations that
management operates to achieve its
distribution objectives (reaching the product
to the end user).
WHAT IF YOU WANT TO BUY A
TOOTHPASTE?
MAJOR ROLE OF AN INTERMEDIARY
Time
PossessionPlace
MARKETING CHANNEL LEVELS
Manufacturer
Retailer
End User
Manufacturer
End User
Manufacturer
Distributor
Retailer
End User
Zero Level One- Level Two- Level
MARKETING CHANNEL MEMBERS
Carrying & Forwarding Agents (C&FAs)
Distributors/Dealers
Wholesalers
Retailers
CARRYING &FORWARDING AGENTS
Collecting the product
Breaking the bulk & Dispatching it to the Distributor
Take physical possession of the good but don‟t pay for it
On contract of the company
Remit value of the goods sold to the company
DISTRIBUTORS
Invest in product by buying it form the company
Work on margins.
They may or may not get credit from the company but they
give credit to wholesalers or retailers
May be exclusive or shared with others
WHOLESALERS
Deal with bulks
They chose and decide what product they will sell
Customers are; other wholesalers, retailers and institutions
They negotiate about 15 days credit from the distributor and
special offer on giving purchase request more than once a
week
Cash & Carry
RETAILERS
French word - Retaillier – to Break Bulk
Shopkeepers set up shops at market place.
Acts as a salesman
Possesses more knowledge on customer needs and aspirations
Strength lies in „Availability‟ & „Visibility‟ of the products they sell
Extend credit to only 25% of their customers
Also provides home delivery
Helps in creating time, place and possession utility.
PATTERNS OF DISTRIBUTION
Intensive Distribution: Product is made available in as many
as outlets possible.
Selective Distribution: Few Select outlets would be permitted
to keep company‟s products.
Exclusive Distribution: only one outlet will have the product
also the outlets set up by the
companies for their own products.
PROMINENT CHANNEL SYSTEMS
Vertical Marketing System (VMS)
Horizontal Marketing System
Multi-channel Marketing System
Channel Management
Decisions
SELECTING CHANNEL PARTNERS
Through advertisements in the press
Getting sales people to visit the markets & speak to the
promising candidates.
References from existing channel partners
CARRYING & FORWARDING AGENTS
Location of the Warehouse
Past Experience
Financial Strength
Transportation Facility
Attitude, Commitment
DISTRIBUTORS
Own Sales force
Current Business
Market Coverage
Credit Extended in the market
Infrastructure Availability
Sales Performance
TRAINING CHANNEL PARTNERS
On the job field training to the channel sales people.
Classroom training to the distributor and his staff.
Special meetings on the launch of new products.
Training on submitting reports & maintaining records.
Care of Co. products in the custody of the channel members.
MOTIVATING CHANNEL PARTNERS
Referent Power
Expert Power
Legitimate Power
Reward Power
Coercive Power
EVALUATING CHANNEL MEMBERS
Sales quota attainment
Average inventory levels
Treatment of Damaged goods, and cooperation in
promotional and training programs.
Underperformers need to be counseled, retrained, motivated
or terminated
MODIFYING CHANNEL ARRANGEMENTS
& DESIGNS
Consumer buying patterns change,
The market expands,
Innovative distribution channels emerge and the product
moves into the later stages in the PLC.
CHANNEL CONFLICT
A situation of discord or disagreement between channel
members for the same marketing channel system.
REASONS FOR CHANNEL CONFLICT
Goal Incompatibility
Unclear Role definition
New Channel Partner
Target Fixing exercise
Extension of credit
TYPES OF CHANNEL CONFLICT
Vertical channel conflict– Conflict between two members at different levels within the same channel. A manufacturer having a conflict with a distributor is an example of vertical.
Horizontal channel Conflict– Involves conflict between members at the same level with in the channel.
Multichannel conflict– When the manufacturer has established two or more channels that sell to the same market.
SOME TERMS YOU SHOULD KNOW
E-Commerce – Use of electronic means & platforms to
conduct a company‟s business.
Pure-Click Companies
Brick-and-Click Companies
M-Commerce
top related