ì	            Distribution Channel           A	  Best	  Prac+ce	  Guide	  For	  Your	  Marke+ng	  Strategy	  Process	    ...
Learning	  Objective	                                        ì  Distribu+on	  Channels	                                  ...
Distribution	  Analysis	           ì  What	  are	  the	  avenues	  to	  the	                      consumer?	           ì...
Distribution	  	  Questions	                                        ì  Three	  ques+ons	                                 ...
Reaching	  Customers	           ì  ID	  Channel	  Intermediaries	               ì  Cereal	  >	  Wholesaler	  >	         ...
Channel	  Intermediaries	           ì  Most	  common	                      ì  Wholesalers	                      ì  Dist...
Distribution	  Players	  +	  Profit	           ì  Design	  your	  channel	  for	                      pricing	  and	  profi...
Selling	  Price	  +	  Profit	           ì  The	  selling	  price	  is	  not	  the	                                        ...
Distribution	  Mock	  up	                          Channel	                Channel	           Next	  Level	       Margin	 ...
Channel	  Power	           ì  Selec+ng	  where	  to	  sell	                ì  Packaged-­‐goods	  companies,	            ...
Internet	  Distribution	           ì  Great	  way	  to	  sell	  with	  lihle	  or	                      no	  costs	      ...
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Best Practice Guide - Marketing Strategy - Distribution Channel By Wayne C…

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An overview of the distribution channel for your marketing strategy. Learn to understand how to pick your distribution, how to sell, the profit margins, relationship building, and internet - ecommerce distribution.

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Best Practice Guide - Marketing Strategy - Distribution Channel By Wayne C…

  1. 1. ì   Distribution Channel A  Best  Prac+ce  Guide  For  Your  Marke+ng  Strategy  Process   By:  Wayne  E.  Chen  ©  2011  –  Wayne  Chen  
  2. 2. Learning  Objective   ì  Distribu+on  Channels   ì  Deciding  on  distribu+on  channels   ì  How  to  reach  customers   ì  Players  and  profit  margins   ì  Channel  rela+onships   ì  Internet  distribu+on  ©  2011  –  Wayne  Chen  
  3. 3. Distribution  Analysis   ì  What  are  the  avenues  to  the   consumer?   ì  Have  mul+ple  ways  to  reach   your  customers     ì  Importance  of  distribu+on   channels   ì  The  price  charged   ì  The  profit  margins    ©  2011  –  Wayne  Chen  
  4. 4. Distribution    Questions   ì  Three  ques+ons   ì  How  can  my  product  reach   the  consumer?   ì  How  much  do  the  players   in  each  distribu+on   channel  gain  in  profit?   ì  Who  holds  the  power  in   each  of  the  distribu+on   channel?  ©  2011  –  Wayne  Chen  
  5. 5. Reaching  Customers   ì  ID  Channel  Intermediaries   ì  Cereal  >  Wholesaler  >   Retailer  >  Customer   ì  Outline  all  paths   ì  Develop  plan   ì  Loca+on   ì  Time   ì  Costs   ì  Margin   ì  Shopping    ©  2011  –  Wayne  Chen  
  6. 6. Channel  Intermediaries   ì  Most  common   ì  Wholesalers   ì  Distributors   ì  Sales  Representa+ves   ì  Sales  Forces   ì  Retailers  ©  2011  –  Wayne  Chen  
  7. 7. Distribution  Players  +  Profit   ì  Design  your  channel  for   pricing  and  profit   ì  Players  take  a  cut  from  the   manufacturer   ì  Channel  par+cipants  in  most   industries  calculate  their  cut   as  a  markup  on  selling  price  ©  2011  –  Wayne  Chen  
  8. 8. Selling  Price  +  Profit   ì  The  selling  price  is  not  the   ( ) ul+mate  retail  price,  but  the   Percent   $  Markup   price  at  which  one   Markup  on   Selling   =   $  Selling  Price   X  100   intermediary  sells  goods  to   Price  (SP)   the  next  intermediary  in  the   chain.     Selling  Price    X  (  1  -­‐    Markup  %)   ì  The  retail  price  is  what  a   consumer  pays   =   The  Preceding  DistribuFon   Level’s  Selling  Price  ©  2011  –  Wayne  Chen  
  9. 9. Distribution  Mock  up   Channel   Channel   Next  Level   Margin   ParFcipant   FuncFon   Selling  Price   Selling  Price   Mr.  Hui   Laborer   $2.00   Fox  Con   Manufacturer   $30.00   93%   Merino  LLC   Transporter   $35.00   14%   Apple  Inc.   Retailer   $550.00   93%   Eric  Smith   Consumer   $550.00  +Tax   -­‐  ©  2011  –  Wayne  Chen  
  10. 10. Channel  Power   ì  Selec+ng  where  to  sell   ì  Packaged-­‐goods  companies,   ì  Unique  products  ,   large  and  small   manufacturer  dictates  the   ì  Cost  of  slogng  fees  to   terms   reserve  space   ì  Not  unique,  channel   dictates  margin  terms   ì  Example:  Grocery  Trade   ì  Shelf  space  and  SKU   ì  Planograms  ©  2011  –  Wayne  Chen  
  11. 11. Internet  Distribution   ì  Great  way  to  sell  with  lihle  or   no  costs   ì  Excellent  reach   ì  Internet  Marke+ng  –  Four  Cs     ì  Commerce   ì   (24  hour  sale)   ì  Content     ì  (Informa+on  and  research)   ì  Customer  care   ì  (  Access  to  account)   ì  Convert  Leads   ì  (  From  TV  or  PR)  ©  2011  –  Wayne  Chen  
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