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Global Channel Management Design 2017
- 1. c https://hbr.org/resources/images/article_assets/2015/09/SEPT15_07_990087-010.jpg Global Channel Management c https://hbr.org/resources/images/article_assets/2015/09/SEPT15_07_990087-010.jpgManagement Internationaler Verkaufkanäle
- 2. A distribution channels moves goods and services from producers to consumers Channel Functions
- 3. A distribution channels moves goods and services from producers to consumers. Therefor they 1. Give information Channel Functions
- 4. A distribution channels moves goods and services from producers to consumers. Therefor they 1. Give information 2. Promote the offer Channel Functions
- 5. A distribution channels moves goods and services from producers to consumers. Therefor they 1. Give information 2. Promote the offer 3. Have contact with customers Channel Functions
- 6. A distribution channels moves goods and services from producers to consumers. Therefor they 1. Give information 2. Promote the offer 3. Have contact with customers 4. Match the offer with the need Channel Functions
- 7. A distribution channels moves goods and services from producers to consumers. Therefor they 1. Give information 2. Promote the offer 3. Have contact with customers 4. Match the offer with the need Channel Functions 5. Negotiate with buyers about price and offer
- 8. A distribution channels moves goods and services from producers to consumers. Therefor they 1. Give information 2. Promote the offer 3. Have contact with customers 4. Match the offer with the need Channel Functions 5. Negotiate with buyers about price and offer 6. Do the physical distribution
- 9. A distribution channels moves goods and services from producers to consumers. Therefor they 1. Give information 2. Promote the offer 3. Have contact with customers 4. Match the offer with the need Channel Functions 5. Negotiate with buyers about price and offer 6. Do the physical distribution 7. May finance the channel cost (Risk taking)
- 10. A distribution channels moves goods and services from producers to consumers. Therefor they 1. Give information 2. Promote the offer 3. Have contact with customers 4. Match the offer with the need 5. Negotiate with buyers about price and offer 6. Do the physical distribution 7. May finance the channel cost (Risk taking) BUT when all are carried out by the manufacturer they increase the costs and prices! Channel Functions
- 11. Channel Strategy
- 12. cFlow of demand stimulation Channel Strategy PUSH Flow of demand stimulation Flow of promotion
- 13. Channel Strategy PUSH 1 popular product and does not involve deep customization
- 14. Channel Strategy PUSH 1 popular product and does not involve deep customization 2 new product
- 15. Channel Strategy PUSH 1 popular product and does not involve deep customization 2 new product 3 use the reputation of the intermediaries
- 16. Channel Strategy PUSH 1 popular product and does not involve deep customization 2 new product 3 use the reputation of the intermediaries 4 temporary release in the market
- 17. Channel Strategy PUSH 1 the reseller can stop the contract 2 the reseller pursues his own interests 3 the reseller becomes to big for the ‘agent’ 4 B2B sales strategy costs money
- 18. cFlow of demand stimulation Channel Strategy Flow of demand stimulation Flow of promotion PULL
- 19. Channel Strategy PULL 1 release services and products under the same brand
- 20. Channel Strategy PULL 1 release services and products under the same brand 2 exclusive or elite positioning
- 21. Channel Strategy PULL 1 expensive strategy 2 high dependent on the brand’s reputation
- 23. Distribution Systems conventional distribution system Conventional distribution systems consist of one or more independent producers, wholesalers, and retailers.
- 24. Distribution Systems conventional distribution system Conventional distribution systems consist of one or more independent producers, wholesalers, and retailers. 1 Each seek to maximize its own profits 2 There is little control over the other members 3 No formal means of assigning roles and resolving conflicts.
- 25. Distribution Systems Hybrid distribution system Multi-channel marketing systems are when a single firm sets up two or more marketing channels to reach one or more customers segments.
- 26. Distribution Systems Hybrid distribution system Multi-channel marketing systems are when a single firm sets up two or more marketing channels to reach one or more customers segments.
- 27. Hybrid distribution system Product Manufacturer Webstore Sales Master Distributor Resellers Cover geographic & Vertical Channels OEM en VAR Partners B2B & B2C Customers End Users, Customers OEM & VAR Customers Original Equipment Manufacturers Value Added Resellers
- 28. Distribution Systems Channel Levels Number of intermediaries between the manufacturer and the end-user
- 29. Distribution Systems Channel Levels DIRECT You sell directly to the end-user.
- 30. Distribution Systems Channel Levels INDIRECT You sell through marketing intermediaries to the end-user.
- 39. Distribution Systems Channel Levels Pharma Industry Distributionofgoods Communicationflow Direct Indirect multi- channel PharmadceuticalCompanies Physicians Patients Intermediaries Pharmacies Hospitals Care Institues Pharmacies Hospitals Care Institues Wholesaler over the counter
- 40. Distribution Systems Channel Levels Pharma Industry Distributionofgoods Communicationflow Direct Indirect multi- channel PharmadceuticalCompanies Physicians Patients Intermediaries Pharmacies Hospitals Care Institues Pharmacies Hospitals Care Institues Wholesaler over the counter Intermediaries
- 41. Distribution Systems Channel Levels INDIRECT Intermediaries who bring buyers and sellers together and assist in negotiating an exchange BUT do not take title of the goods. Agents & Brokers
- 42. Distribution Systems Channel Levels INDIRECT An intermediaries that sells products to other organizations such as retailers, manufacturers,… Wholesaler
- 43. Distribution Systems Channel Levels INDIRECT An intermediaries that sells products to other organizations such as retailers, manufacturers,… Wholesaler Operate on high volumes and low margins.
- 44. Distribution Systems Channel Levels INDIRECT An independently owned organization that takes the title of the merchandise they handle for full Wholesaler Merchant Wholesaler
- 45. Distribution Systems Channel Levels INDIRECT Carry stock, maintain a sales force, offer credit, make deliveries, provide business assistance, … Wholesaler Full Service Wholesaler
- 46. Distribution Systems Channel Levels INDIRECT Range of services is limited. Mostly Cash & Carry Wholesaler Limited Service Wholesaler
- 47. Distribution Systems Channel Levels INDIRECT An organisation that sells the product to the final customer Retailer
- 48. Distribution Systems Channel Levels INDIRECT Have a narrow product or (single) brand line Specialty Store Retailer
- 49. Distribution Systems Channel Levels INDIRECT Have a several product lines Department Store Retailer
- 50. Distribution Systems Channel Levels INDIRECT Large stores, with high volumes, low margins, low costs and self service. Supermarket Retailer
- 51. Distribution Systems Channel Levels INDIRECT Small store mostly in residential areas with higher margin Convenience Stores Retailer
- 52. Distribution Systems Channel Levels INDIRECT Mostly outlets (leftover sales, irregular product line) Off-Price retail Retailer
- 53. Distribution Systems Channel Levels INDIRECT Very huge store with routine assortment of food products and non-food products. Mostly very deep assortment in one category. Superstores Retailer
- 54. Distribution Systems Channel Levels INDIRECT Broad selection of high markup, fast moving brand name goods sold by catalogue (sometimes with discount) Catalogue Retailer
- 56. WholesalerRetailer operate in the main market no issues about location deal with businessmen deal with specific group of products large trading area high volume, low margin operate in the local market location is important deal with consumer deal with more products small trading area low volume, low margin
- 59. Vertical Marketing System Producers, wholesalers and retailers acting as a unified system
- 64. Vertical Marketing System The own/make the product The own the retailer
- 68. Vertical Marketing System Corporate VMS integrates successive stages of production and distribution under single ownership.
- 69. Vertical Marketing System Contractual VMS consists of independent firms at different levels of production and distribution who join together through contracts to obtain more economies of sales impact the each could achieve alone.
- 70. Vertical Marketing System Contractual VMS consists of independent firms at different levels of production and distribution who join together through contracts to obtain more economies of sales impact the each could achieve alone.
- 71. Vertical Marketing System Contractual VMS consists of independent firms at different levels of production and distribution who join together through contracts to obtain more economies of sales impact the each could achieve alone. • Wholesalers sponsored voluntary chains • Retailer cooperatives • Franchise organisations
- 72. Vertical Marketing System Contractual VMS consists of independent firms at different levels of production and distribution who join together through contracts to obtain more economies of sales impact the each could achieve alone. Franchise
- 73. Vertical Marketing System Business format franchise not only distributes the franchisor’s products and services under the franchisor’s trademark, but also implements the franchisor’s format and business procedure. Franchise Contractual VMS
- 74. Vertical Marketing System In Product distribution franchise the franchisee merely sells the franchisor’s products or services. Franchise Contractual VMS
- 75. Vertical Marketing System The management franchise provides the management expertise, format and/or procedure for conducting the business. Franchise Contractual VMS
- 76. Vertical Marketing System Administrative VMS has a few dominant channel members without common ownership. Leadership comes from size and power.
- 77. © Administrative VMS has a few dominant channel members without common ownership. Leadership comes from size and power. Vertical Marketing System
- 78. Horizontal Marketing System Horizontaal Marketing Systems are when two or more companies at one level join together to follow a new marketing opportunity. Companies combine financial, production, or marketing resources to accomplish more than any company could alone.
- 79. Horizontal Marketing System Horizontaal Marketing Systems are when two or more companies at one level join together to follow a new marketing opportunity. Companies combine financial, production, or marketing resources to accomplish more than any company could alone.
- 80. Horizontal Marketing System Horizontaal Marketing Systems are when two or more companies at one level join together to follow a new marketing opportunity. Companies combine financial, production, or marketing resources to accomplish more than any company could alone.
- 82. Channel Conflict Occurs when one channel member believes another channel member is engaged in behavior that is preventing them from achieving their goals.
- 83. Channel Conflict Occurs when one channel member believes another channel member is engaged in behavior that is preventing them from achieving their goals. 1 channel members bypass another to buy and sell direct
- 84. Channel Conflict Occurs when one channel member believes another channel member is engaged in behavior that is preventing them from achieving their goals. 1 channel members bypass another to buy and sell direct 2 profit margins are uneven between channel members
- 85. Occurs when one channel member believes another channel member is engaged in behavior that is preventing them from achieving their goals. 1 channel members bypass another to buy and sell direct 2 profit margins are uneven between channel members 3 manufacturers believes channel member is not providing attention to its products Channel Conflict
- 86. Occurs when one channel member believes another channel member is engaged in behavior that is preventing them from achieving their goals. 1 channel members bypass another to buy and sell direct 2 profit margins are uneven between channel members 3 manufacturers believes channel member is not providing attention to its products Channel Conflict 4 manufacturer engage in dual distribution
- 90. Channel Alternatives Exclusive Distribution Highly selective choice of retailers - one per market Producers wants a close watch and control
- 91. Channel Alternatives Intensive Distribution As much retailers as possible Preferably for consumer (FMCG) and pharmaceutical products and automotive spares.
- 92. Channel Alternatives Selective Distribution Retailers will be selected in line with the company/brand image Preferred for his value products Keep distribution cost low(er)
- 94. Product Life Cycle Introduction Growth Maturity/Saturation Decline Marginal Revenue Revenue Cost Profit
- 95. Product Life Cycle Introduction Growth Maturity/Saturation Decline Marginal Revenue Revenue Cost Profit Limited Retailers Exclusive distribution
- 96. Product Life Cycle Introduction Growth Maturity/Saturation Decline Marginal Revenue Revenue Cost Profit Limited Retailers Exclusive distribution More Retailers Multiple distribution Representation
- 97. Product Life Cycle Introduction Growth Maturity/Saturation Decline Marginal Revenue Revenue Cost Profit Limited Retailers Exclusive distribution More Retailers Multiple distribution Representation Max. Retailers Key Account Management Local sales
- 98. Product Life Cycle Introduction Growth Maturity/Saturation Decline Marginal Revenue Revenue Cost Profit Limited Retailers Exclusive distribution More Retailers Multiple distribution Representation Max. Retailers Key Account Management Local sales Fewer Retailers Global Acc. Man. Full local org.
- 99. Product Life Cycle Introduction Growth Maturity/Saturation Decline Marginal Revenue Revenue Cost Profit Limited Retailers Exclusive distribution More Retailers Multiple distribution Representation Max. Retailers Key Account Management Local sales Fewer Retailers Global Acc. Man. Full local org. Set up direct sales channels
- 100. Product Life Cycle Introduction Growth Maturity/Saturation Decline Marginal Revenue Revenue Cost Profit Limited Retailers Exclusive distribution More Retailers Multiple distribution Representation Max. Retailers Key Account Management Local sales Fewer Retailers Global Acc. Man. Full local org. Set up direct sales channels Set up E-commerce
- 101. Channel Design designing international distribution channels
- 102. Channel Design Channel design are all decisions involving the development of new marketing channels where none has existed before, or the modification of existing channels.
- 103. Channel Design The channel design should contribute to the firm’s quest for differential advantage.
- 104. Channel Design Differential advantage = Unique benefits or characteristics of a firm, product, or program that set it apart and above its competitors in the customers' viewpoint. The channel design should contribute to the firm’s quest for differential advantage.
- 111. Channel Design Analyzing customer needs Setting Channel Objectives Know your customer segments.
- 112. Channel Design Analyzing customer needs Setting Channel Objectives Know your customer segments. What’s the targeted level of customer service? After sales
- 113. Channel Design Analyzing customer needs Setting Channel Objectives Know your customer segments. What’s the targeted level of customer service? What are the best channels to use? After sales
- 114. Channel Design Analyzing customer needs Setting Channel Objectives Know your customer segments. What’s the targeted level of customer service? What are the best channels to use? Cost-efficient way to meet customer requirements
- 115. Channel Design Analyzing customer needs Setting Channel Objectives Identifying channel alternatives
- 117. Channel Design Analyzing customer needs Setting Channel Objectives Identifying channel alternatives Types of intermediaries. NNumber of intermediaries
- 118. Channel Design Analyzing customer needs Setting Channel Objectives Identifying channel alternatives Types of intermediaries. NNumber of intermediaries Responsibility of each channel member
- 120. Segmentation Putting customers in similar clusters based on their need Channel Design
- 121. Segmentation Positioning Putting customers in similar clusters based on their need Fix what level of service is required Channel Design
- 122. Segmentation Positioning Focus Putting customers in similar clusters based on their need Fix what level of service is required The sky is not the limit! Choose! Channel Design
- 123. Segmentation Positioning Focus Development Putting customers in similar clusters based on their need Fix what level of service is required The sky is not the limit! Choose! Channel Design
- 124. Channel Design MOTIVATION cCoercion - punishmentReward - incentives Coercion - punishment Referent - strong image cCoercion - punishmentLegitimate - contract cCoercion - punishmentExpert - knowledge cCoercion - punishmentSupport - extra benefits cCoercion - punishmentCompetition
- 128. Channel Design Analyzing customer needs Setting Channel Objectives Identifying channel alternatives Evaluation Cost of operation NAbility to manage & control
- 129. Channel Design Analyzing customer needs Setting Channel Objectives Identifying channel alternatives Evaluation Cost of operation NAbility to manage & control Adaptability
- 130. Channel Design Analyzing customer needs Setting Channel Objectives Identifying channel alternatives Evaluation Cost of operation NAbility to manage & control Adaptability Range & volume to be handled
- 132. FAIL
- 133. Ignoring end user buying patterns Assuming that your direct sales force will assist the indirect channels Expecting channels to change for you Sticking to traditional partners/channels Being casual about selecting & evaluating channel members Hoping that one channel can sell to every customer FAIL Avoiding a channel conflict instead of managing it
- 135. Let’s go to workSouth Africa Malaysia Australia Argentina South Korea MexicoPeru
- 136. Let’s go to work What is Vaude all about? (Mission/Vision/Strategy) What are they selling? Who is your customer in the target countries? Why are these targeted countries for Vaude? Compose the customer journey of a Valued Customer. Develop a marketing channel strategy for Vaude to introduce Vaude in your target country.
- 137. Let’s go to work Think about the 4 steps! Be aware of channel potential conflicts! …there is more to add after next class!
- 138. Let’s go to work Your end-product One-Page Strategy (+ appendix) 5m presentation (Management Summary) My Evaluation Not the what, but the how is important You evaluate on other introduction - max 1p!
- 139. c https://hbr.org/resources/images/article_assets/2015/09/SEPT15_07_990087-010.jpg Global Channel Management c https://hbr.org/resources/images/article_assets/2015/09/SEPT15_07_990087-010.jpgManagement Internationaler Verkaufkanäle