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CHANNEL POWER<br />An aid for org. success….<br />PRESENTED BY:-<br />RAJAT CHOUDHARY<br />FAIZAN SHAKIR<br />SUHAIL SULTA...
ABOUT THE CONCEPT…<br />What is a Channel?<br />    A set of interdependent organizations or indivisduals(intermediaries) ...
Channel Functions<br />Contacts with prospective buyers<br />Matching buyers and sellers<br />Negotiation<br />Physical di...
Channel objective<br />Ensure the availability of product at all time in the market.<br />Increasing the sharing of inform...
Channel Strategy<br />The broad principles by which a firm expects to achieve its distribution objectives for satisfying i...
Channel Design / Strategy<br /><ul><li>Company Analysis
Competitor Analysis
Analysis of Existing Channel</li></ul>What benefits are sought?<br />What activities are required?<br />Strategic Issues /...
Design Alternatives Design Alternatives - Strategic Issues<br />1. Number of Channel Levels: Direct vs. Indirect<br />2. N...
Marketing Channel Strategy is Growing in Importance. Why?Five Reasons<br />(1) Search for Sustainable Competitive     Adva...
EX. OF CHANNELS strategy<br />INDIRECT CHANNEL<br />DIRECT CHANNEL<br />MANUFACTURER<br />MANUFACTURER<br />WHOLESELLER<br...
Building Relationships with Channel Members<br />Find Out the Needs and Problems of Channel Members<br />		-informal infor...
Offer Support to Channel Members that is Consistent with Their Needs and Helps Solve their Problems<br />		-cooperative ar...
Classic Marketing Channel Strategies Still Relevant Today<br />Dual Distribution<br />Exclusive Dealing<br />Full-Line For...
How to maintain strong relation?<br />(1) Recognition of interdependence of channel      	members<br />(2) Close cooperati...
Bases of Power in the Marketing Channel<br />Reward Power<br />Coercive Power<br />Legitimate Power<br />Referent Power<br...
Causes of Marketing Channel Conflict<br />Role Incongruities<br />Resource Scarcities<br />Perceptual Divergencies<br />Ex...
I. The Search for Sustainable Competitive Advantage<br />
Sustainable Competitive Advantage:<br />    A competitive advantage that cannot be quickly and easily copied by competitor...
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Distribution Mgmt (1)

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Transcript of "Distribution Mgmt (1)"

  1. 1. CHANNEL POWER<br />An aid for org. success….<br />PRESENTED BY:-<br />RAJAT CHOUDHARY<br />FAIZAN SHAKIR<br />SUHAIL SULTAN<br />ROHITH MANDUVA<br />KIMI GUGLANI<br />GAUTHAM VEMULA<br />
  2. 2. ABOUT THE CONCEPT…<br />What is a Channel?<br /> A set of interdependent organizations or indivisduals(intermediaries) involved in the process of making a product available for consumption or use by the consumer or business buyer.<br />Channel power<br /> The strength of channel members do lead to create channel power.<br />Why Marketing Intermediaries?<br />They offer efficiency in making products available to target markets through:<br />Contacts<br />Experience<br />Specialization<br />Scale of operation<br />
  3. 3. Channel Functions<br />Contacts with prospective buyers<br />Matching buyers and sellers<br />Negotiation<br />Physical distribution<br />Marketing research, information<br />Customer service<br />Promotion<br />Financing<br />Pricing<br />Buying<br />Training<br />
  4. 4. Channel objective<br />Ensure the availability of product at all time in the market.<br />Increasing the sharing of information & technology across the participants<br />Try to enhance the public image of the company <br />Provide the best services to consumer<br />
  5. 5. Channel Strategy<br />The broad principles by which a firm expects to achieve its distribution objectives for satisfying its customers<br />
  6. 6. Channel Design / Strategy<br /><ul><li>Company Analysis
  7. 7. Competitor Analysis
  8. 8. Analysis of Existing Channel</li></ul>What benefits are sought?<br />What activities are required?<br />Strategic Issues / Dimensions<br />Economics<br />Control<br />Adaptability<br />
  9. 9. Design Alternatives Design Alternatives - Strategic Issues<br />1. Number of Channel Levels: Direct vs. Indirect<br />2. Number of Members (at a level): Exclusive vs. Selective vs. Intensive<br />3. Allocating Channel Functions / Responsibilities<br />4. Type of Marketing System<br />
  10. 10. Marketing Channel Strategy is Growing in Importance. Why?Five Reasons<br />(1) Search for Sustainable Competitive Advantage<br />(2) Growing Power of Retailers in Marketing Channels<br />(3) The Need to Reduce Distribution Costs<br />(4) The Increased Role and Power of Technology<br />(5) The New Stress on Growth<br />
  11. 11. EX. OF CHANNELS strategy<br />INDIRECT CHANNEL<br />DIRECT CHANNEL<br />MANUFACTURER<br />MANUFACTURER<br />WHOLESELLER<br />CONSUMER<br />RETAILER<br />CONSUMER<br />
  12. 12. Building Relationships with Channel Members<br />Find Out the Needs and Problems of Channel Members<br /> -informal information system (“grapevine”)<br /> -research studies of channel members<br /> -research studies by outside parties<br /> -marketing channel audit<br /> -distributor advisory councils<br />
  13. 13. Offer Support to Channel Members that is Consistent with Their Needs and Helps Solve their Problems<br /> -cooperative arrangements<br /> -partnerships and strategic alliances<br /> -distribution programming<br />Provide Leadership to Motivate Channel Members <br /> -use power effectively<br /> -recognize causes of conflict<br /> -resolve conflicts<br />
  14. 14. Classic Marketing Channel Strategies Still Relevant Today<br />Dual Distribution<br />Exclusive Dealing<br />Full-Line Forcing<br />Price Differentiation<br />Price Maintenance<br />Refusal to Deal<br />Resale Restrictions<br />Tying Agreements<br />
  15. 15. How to maintain strong relation?<br />(1) Recognition of interdependence of channel members<br />(2) Close cooperation between channel members<br />(3) Careful specification of roles, rights, and responsibilities in the relationship<br />(4) Coordinated effort focused on common goals<br />(5) Good communications and trust between channel members<br />
  16. 16. Bases of Power in the Marketing Channel<br />Reward Power<br />Coercive Power<br />Legitimate Power<br />Referent Power<br />Expert Power<br />Effective Channel Management Depends <br />on How Well These Power Bases are <br />Combined and Used<br />
  17. 17. Causes of Marketing Channel Conflict<br />Role Incongruities<br />Resource Scarcities<br />Perceptual Divergencies<br />Expectational Differences<br />Decision Domain Disagreements<br />Goal Incompatabilities<br />Communication Difficulties<br />
  18. 18. I. The Search for Sustainable Competitive Advantage<br />
  19. 19. Sustainable Competitive Advantage:<br /> A competitive advantage that cannot be quickly and easily copied by competitors<br />
  20. 20. A sustainable competitive advantage is becoming more difficult to attain through:<br />Product Strategy- rapid technology transfer enables competitors to quickly produce similar products<br />Pricing Strategy- global economy allows competitors to find low cost production to match prices<br />Promotion Strategy- high cost, clutter, and short life promotional campaigns limit competitive advantage<br />
  21. 21. THANK YOU<br />
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