7 marketing channel and supply chain strategy and management (Dual…
7 marketing channel and supply chain strategy and management
channel modification decisions
questions which informs whether a modification should be made
what will the effect of the change have one long-range objectives?
what effect will the change have on the other channel participants?
does the organization has the resources to perform the new functions?
will it improve satisfaction of buyer needs?
will it improve coverage?
Dual distribution and multi-channel marketing
satisfying intermediary requirements and trade relations
reward or coerce
going from being selective/exclusive to intensive
not promoting the manufacturers offerings enough
using power to increase ones own margin as the cost of supplier
cutting out the middleman
relationship with stakeholders/suppliers
the dropping of intermediates for direct marketing channel (often e), can be very disruptive for suppliers
incremental revenue or cannibalization
are each channel mutually reinforcing in attracting, retaining and building customer relationships?
do the channels reach different segments?
same as dual but involves the synergistic blending of e-marketing channel with a traditional marketing channel
when an organization distributes its offering through two or more diffrent marketing channels
channel selection decisions
... will be most profitable
channel cost is the critical dimension
... will best satisfy the buyer requirements of the target market
types of buyer requirements
example installation and home delivery
buyers has interest in numerous of competing and complementary offerings from which to choose
example high tech
important when buyers have limited knowledge or desire specific data about the offering
which channel and intermediaries will provide the best coverage of the target market?
degrees of density
selective in the choice of retail outlets
franchise is a common form
exclusive rights to sell a line of products
distribute the offerings to as many retail outlets as possible
design of marketing channels
electronic marketing channels
direct vs indirect
the use of intermediaries
have to take on all the functions of intermediaries which demand resources. you can eliminate intermediaries but not their functions
when using indirect marketing channel are unable to reach or satisfy market requirements
sufficient resources are available to satisfy target market requirements
the organization has a wide variety of offerings for the target market
personal selling is a major component of the organizations communication program
easily identifiable buyers
contact end users directly
working backward from the ultimate buyer
how do they buy?
what do they buy?
where do they buy?
who are the potential buyers?
individuals and organizations that perform logistical activities required to create and deliver a product/service to user
individuals and organizations involved in the process of making a product/ service available for consumption or use