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