rafia distribution stategies
TRANSCRIPT
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MARKETING STRATEGY
6. Designing and managingIntegrated MarketingChannels
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WHAT IS A MARKETING CHANNEL?
A marketing channel system is theparticular set of interdependent organizationsinvolved in the process of making a product
or service available for use or consumption.
Marketing channels must not just markets, they mustalso markets
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CHANNELS AND
MARKETING DECISIONS
A push strategy uses the manufacturerssales force, trade promotion money, andother means to induce intermediaries to
carry, promote, and sell the product toend users
A pull strategy uses advertising,promotion, and other forms ofcommunication to persuade consumersto demand the product fromintermediaries
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BUYER EXPECTATIONS FOR
CHANNEL INTEGRATION
Ability to order a product online and pick it up at aconvenient retail location
Ability to return an online-ordered product to a
nearby store Right to receive discounts based on total online and
offline purchases
EX: CROSSWORD
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TYPES OF SHOPPERS
Service/quality customers
Price/value customers
Affinity customers-a tight bond between
customers and company ,when affinity ishigh cost of new product launch goesdown
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SHOULD THE 4 PS BE REPLACED?
Solutions
Information
Value Access
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INCREASING EFFICIENCY
DIRECT MARKETING
REDUCE THE NUMBER OF CONTACTS AND THE WORK
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CHANNEL MEMBER FUNCTIONS
Gather information
Develop and disseminate persuasivecommunications
Reach agreements on price and terms Assume risks
Provide for storage
Provide for buyers payment of their bills Oversee actual transfer of ownership
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FIGURE MARKETING CHANNEL FLOWS
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FIGURE
CONSUMER MARKETING CHANNELS
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FIGURE INDUSTRIAL
MARKETING CHANNELS
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DESIGNING A
MARKETING CHANNEL SYSTEM
Analyze customer needs
Establish channel objectives
Identify major channel alternatives Evaluate major channel alternatives
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CHANNEL SERVICE OUTPUTS
Lot size: the number of units the channelpermits a typical customer to purchase on oneoccasion
Waiting/delivery time: customers prefer faster
delivery channels Spatial convenience: customers prefer
convenience-BATA retail outlet
Product variety: customers prefer greater
assortment because more choices increasethe chance of finding their need Service backup: the add on services like
credit,delivery,installation,repairs provided bythe channel
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IDENTIFYING CHANNEL ALTERNATIVES
Types of intermediaries-SHGs,-OPERATIONSHAKTI,e-choupal
Number of intermediaries
Terms and responsibilities
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NUMBER OF INTERMEDIARIES
Exclusive-more dedicating andknowledgeable selling Involves limitingdistribution to a single outlet. The product isusually highly priced, and requires theintermediary to place much detail in its sell.
An example of would be the sale of vehiclesthrough exclusive dealers.
Selective-limited number of outlets orintermediariesShemaroovideos throughrental store,online,catalogs ,TITAN WATCHES
Intensive-PLACING the goods in as manyoutlets as possible- tobacco products, snackfoods, soap
http://en.mimi.hu/marketingweb/distribution.htmlhttp://en.mimi.hu/marketingweb/outlet.htmlhttp://en.mimi.hu/marketingweb/product.htmlhttp://en.mimi.hu/marketingweb/distribution.htmlhttp://en.mimi.hu/marketingweb/outlet.htmlhttp://en.mimi.hu/marketingweb/product.htmlhttp://en.mimi.hu/marketingweb/price.htmlhttp://en.mimi.hu/marketingweb/place.htmlhttp://en.mimi.hu/marketingweb/sale.htmlhttp://en.mimi.hu/marketingweb/vehicle.htmlhttp://en.mimi.hu/marketingweb/product.htmlhttp://en.mimi.hu/marketingweb/product.htmlhttp://en.mimi.hu/marketingweb/rough.htmlhttp://en.mimi.hu/marketingweb/rough.htmlhttp://en.mimi.hu/marketingweb/product.htmlhttp://en.mimi.hu/marketingweb/product.htmlhttp://en.mimi.hu/marketingweb/vehicle.htmlhttp://en.mimi.hu/marketingweb/sale.htmlhttp://en.mimi.hu/marketingweb/place.htmlhttp://en.mimi.hu/marketingweb/price.htmlhttp://en.mimi.hu/marketingweb/product.htmlhttp://en.mimi.hu/marketingweb/outlet.htmlhttp://en.mimi.hu/marketingweb/distribution.html -
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FIGURE THE VALUE-ADDS VERSUS COSTS OF DIFFERENT
CHANNELS
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FIGURE BREAK-EVEN CHART FOR THE CHOICE BETWEEN A COMPANY SALES
FORCE AND WHOLESALERS SALES TEAM
company'ssales force
wholesaler's
agency
Sales cost
Volume of sales
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TERMS AND RESPONSIBILITIES
OF CHANNEL MEMBERS
Price policy-price lists, schedule ofdiscounts for intermediaries
Condition of sale-payment terms andproducer guarantees
Distributors territorial rights
Mutual services and responsibilities-McDonald's franchisees
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CHANNEL-MANAGEMENT DECISIONS
Selecting channel members
Training channel members
Motivating channel members
Evaluating channel members
Modifying channel members
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MOTIVATING-CHANNEL POWER
Coercive-manufacturer threaten to withdraw
relationship if intermediaries fail to co-operate
Reward-manufacturer offer intermediate anextra benefit for performing specific acts butintermediaries may ask for reward every timefor certain behavior
Legitimate-manufacturer requests a behaviorthat is warranted under the contract
Expert-the manufacturer has specialknowledge that the intermediaries value but ifthis expertise passed to intermediaries thenpower weakens
Referent-intermediaries are proud to be
associated with manufacturerIBM CATERPILLAR
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CHANNEL INTEGRATION AND SYSTEMS
Vertical marketing systems Corporate VMS-UNDER a single ownership-BPCL Administered VMS-co-ordinates successive stages of
production and distribution through the size and power ofone of the members-P&G
Contractual VMS-wholesaler sponsored voluntary chains,retailer co-operatives, franchise organizations Horizontal marketing systems-two or more unrelated
companies put together resources to exploit anemerging marketing opportunity-HLL with Pepsi for
Lipton's ready to drink and other beverages Multichannel systems-when a single firm uses 2 or
more marketing channels to reach one or morecustomer segments
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FIGURE : THE HYBRID GRID
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WHAT IS CHANNEL CONFLICT?
Channel conflictoccurs when one members
actions prevent another channel from achieving itsgoal.
Types of channel conflict Vertical-conflict between different levels within the same
channelsPETROLEUM COMPANIES on commission Horizontal-members with in the same level within the
channel-dealers in operation of area conflict
Multichannel -two or more channels that sell to the
same market-ESCORTS trying to create paralleldealership for a line of tractors in the early 1980s
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CAUSES OF CHANNEL CONFLICT
Goal incompatibility-manufacturer anddealer on profits
Unclear roles and rights-manufacturersales force and dealers sales force
servicing same territory-HP-personalcomputers
Differences in perception-manufacturermay be optimistic about the short term
economic outlook and wants dealers tocarry high inventory
Intermediaries dependence onmanufacturer-AUTO dealers on pricing
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TABLE STRATEGIES FOR MANAGING CHANNEL
CONFLICT
Adoption of super ordinategoals-joint goals of members
Exchange of employees-GMsdealer policy
Cooptation-support of otherorganizations leaders as a boardof directors
Diplomacy-to meet the counterpart to resolve the conflicts
Mediation-by neutral 3rd party Arbitration-to arbitrators- It is a
settlement technique in which athird party reviews the case andimposes a decision that is legallybinding for both sides
Legal recourse
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Marketing mix in E-MARKETING
PRODUCT: LIMITED LIFE OF THE PRODUCT
PRICE: CONSTANT INNOVATION INPRODUCTS,ONLINE SAVES COST,TIME
PLACE: SAFE DELIVERY OF GOODS,GLOBALISATION
PROMOTION: DIRECT INTERACTION BETWEEN
CONSUMERS AND SELLERS:
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brick and mortarbusinesses are
companies whichhave a physicalpresence (for
example, a buildingmade of bricks andmortar) which offerface-to-faceconsumerexperiences.
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1.Ranbaxy
2.Nokia3.Samsung4.LG
5.Imax6.Indian railways7.Airlineskingfisher,JET,INDIGO
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B2B E-COMMERCE
SUPPLIER WEBSITES
Infomediaries-information aboutalternatives
Market makers-third parties create marketby linking buyers and sellers
Customer communities-websites where
buyers can swap stories about suppliersproducts and services
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TYPES OF E-COMMERCE