This document discusses designing customer-oriented marketing channels. It explains that customer-oriented channels are designed based on customer requirements to deliver desired services in the most viable way. The key aspects covered are capturing customer needs, conceiving necessary channel flows, analyzing costs, and designing an ideal channel structure to meet service objectives in a cost-effective manner.
1. Physical distribution channels refer to the methods used to transfer products from production to customers.
2. Companies have a variety of alternative channels to choose from to reach customers, often using a mix to target different buyer segments.
3. Alternative channels are described by the type and number of intermediaries used as well as the terms of responsibilities between members. Common alternatives include manufacturer direct to retail, manufacturer to wholesaler to retail, mail order, internet shopping, and factory direct to home or business.
This document discusses retail marketing communication. It begins by defining retail communication as programs conducted by retailers to inform customers about products, services, and stores. The main goals are to increase the customer base and sales volume. Communication also helps build the store image. Key functions of retail communication include providing information, persuading customers, and reminding them about offerings. Common communication methods are advertising, sales promotions, store atmosphere, websites, salespeople, email, direct mail, and word-of-mouth. Developing an effective communication plan involves establishing objectives, determining the budget, allocating the budget, and implementing and evaluating the programs.
This document discusses distribution channels and their types. It defines distribution channels as the route by which products flow from production to consumption. Distribution channels can be conventional or non-conventional. Conventional channels involve independent intermediaries while non-conventional channels involve vertically or horizontally integrated systems. Common conventional channels include direct channels from manufacturer to consumer, and indirect one-level, two-level, or multi-level channels involving intermediaries like wholesalers or retailers. Non-conventional channels include vertical systems where manufacturers own distributors, and horizontal systems with strategic partnerships. The document also discusses industrial distribution channels.
The document discusses physical distribution and distribution channels. It defines physical distribution as moving tangible products through distribution channels. Physical distribution management involves activities like order processing, inventory control, inventory location and warehousing, materials handling, and transportation. When designing marketing channels, marketers consider factors like setting distribution objectives, specifying distribution tasks, developing alternative channel structures, evaluating relevant variables, and selecting channel members. Channel structure dimensions include the number of levels, intensity at various levels, and types of intermediaries. Variables affecting channel structure are market variables, product variables, company variables, intermediary variables, and environmental/behavioral variables. The key is developing a channel structure that aligns with objectives and considers all relevant factors.
The document outlines Parasuraman, Berry, and Zeithaml's Gaps Model of Service Quality which identifies gaps between customer expectations and perceptions that can occur within an organization, and it discusses their SERVQUAL framework for measuring service quality across five dimensions: tangibles, reliability, responsiveness, assurance, and empathy. The Gaps Model is used to show how four internal gaps within a company relating to understanding customer expectations, service design, service delivery, and communications can contribute to an overall gap between customer expectations and perceptions of service quality.
The document discusses distribution challenges and opportunities in rural Indian markets. It notes that while there are over 60 lakh retail outlets in rural areas, reaching consumers is difficult due to a long distribution chain, lack of dealers and infrastructure like roads. However, 80% of consumers near highways shop in nearby towns. Emerging models to better reach rural customers include using cooperative societies, government distribution systems, mobile trading units, and modern retail chains with rural focus. Overall, marketers must take a selective approach in developing rural distribution networks due to the wide geographical scope and low population densities.
Retail management involves overseeing the business activities involved in selling goods and services to consumers. Key issues retailers must address include serving customers profitably while standing out competitively. Retailers act as an intermediary between manufacturers, wholesalers, and consumers by sorting products and facilitating transactions. Developing a retail strategy that focuses on customers, coordinates efforts, is value-driven and goal-oriented is important for success. Retail institutions can be classified as either store-based using a mix of strategies or nonstore-based using nontraditional approaches like direct marketing.
1. Physical distribution channels refer to the methods used to transfer products from production to customers.
2. Companies have a variety of alternative channels to choose from to reach customers, often using a mix to target different buyer segments.
3. Alternative channels are described by the type and number of intermediaries used as well as the terms of responsibilities between members. Common alternatives include manufacturer direct to retail, manufacturer to wholesaler to retail, mail order, internet shopping, and factory direct to home or business.
This document discusses retail marketing communication. It begins by defining retail communication as programs conducted by retailers to inform customers about products, services, and stores. The main goals are to increase the customer base and sales volume. Communication also helps build the store image. Key functions of retail communication include providing information, persuading customers, and reminding them about offerings. Common communication methods are advertising, sales promotions, store atmosphere, websites, salespeople, email, direct mail, and word-of-mouth. Developing an effective communication plan involves establishing objectives, determining the budget, allocating the budget, and implementing and evaluating the programs.
This document discusses distribution channels and their types. It defines distribution channels as the route by which products flow from production to consumption. Distribution channels can be conventional or non-conventional. Conventional channels involve independent intermediaries while non-conventional channels involve vertically or horizontally integrated systems. Common conventional channels include direct channels from manufacturer to consumer, and indirect one-level, two-level, or multi-level channels involving intermediaries like wholesalers or retailers. Non-conventional channels include vertical systems where manufacturers own distributors, and horizontal systems with strategic partnerships. The document also discusses industrial distribution channels.
The document discusses physical distribution and distribution channels. It defines physical distribution as moving tangible products through distribution channels. Physical distribution management involves activities like order processing, inventory control, inventory location and warehousing, materials handling, and transportation. When designing marketing channels, marketers consider factors like setting distribution objectives, specifying distribution tasks, developing alternative channel structures, evaluating relevant variables, and selecting channel members. Channel structure dimensions include the number of levels, intensity at various levels, and types of intermediaries. Variables affecting channel structure are market variables, product variables, company variables, intermediary variables, and environmental/behavioral variables. The key is developing a channel structure that aligns with objectives and considers all relevant factors.
The document outlines Parasuraman, Berry, and Zeithaml's Gaps Model of Service Quality which identifies gaps between customer expectations and perceptions that can occur within an organization, and it discusses their SERVQUAL framework for measuring service quality across five dimensions: tangibles, reliability, responsiveness, assurance, and empathy. The Gaps Model is used to show how four internal gaps within a company relating to understanding customer expectations, service design, service delivery, and communications can contribute to an overall gap between customer expectations and perceptions of service quality.
The document discusses distribution challenges and opportunities in rural Indian markets. It notes that while there are over 60 lakh retail outlets in rural areas, reaching consumers is difficult due to a long distribution chain, lack of dealers and infrastructure like roads. However, 80% of consumers near highways shop in nearby towns. Emerging models to better reach rural customers include using cooperative societies, government distribution systems, mobile trading units, and modern retail chains with rural focus. Overall, marketers must take a selective approach in developing rural distribution networks due to the wide geographical scope and low population densities.
Retail management involves overseeing the business activities involved in selling goods and services to consumers. Key issues retailers must address include serving customers profitably while standing out competitively. Retailers act as an intermediary between manufacturers, wholesalers, and consumers by sorting products and facilitating transactions. Developing a retail strategy that focuses on customers, coordinates efforts, is value-driven and goal-oriented is important for success. Retail institutions can be classified as either store-based using a mix of strategies or nonstore-based using nontraditional approaches like direct marketing.
This document provides information on sales force management and sales training. It discusses the meaning and definition of recruitment, characteristics of recruitment, and the process of recruiting salesmen including determining the nature, number, and sources of salesmen. It also covers the meaning of selection, its importance, who selects salesmen, principles and methods used in selection, and selection tests. Finally, it discusses the meaning and objectives of sales training, its importance, types of training, contents of a good training scheme, and planning a sales training program in terms of its aim, content, method of execution, and evaluation.
Channel Management Decisions and Training of Channel MembersMegha Anilkumar
Channel management involves developing marketing techniques and sales strategies to reach customers through various distribution channels. It aims to recognize potential customers, interact with them, and create long-term value. Key factors in effective channel management include recruiting, selecting, motivating, and evaluating channel members such as manufacturers, distributors, wholesalers, resellers, and retailers. Managing relationships within the channel through cooperation, addressing power dynamics, and reducing conflicts is also important for maximizing revenue and profits.
This document discusses service encounters from a lecture presented by Dr. Niraj Chaudhari. It defines a service encounter as the initial interaction between a customer and service provider. More than half of multinational corporations are involved in providing services, making the study of service encounters increasingly important. The document goes on to discuss the triad of a service encounter, its characteristics, types, elements, and the role of technology. It also examines self-service, customer-dominated encounters, contact personnel-dominated encounters, and service organization-dominated encounters. Finally, it briefly mentions the functions, models, control, and design of service organizations.
Service Positioning
After a service strategy has been identified, a company must decide how to position its product most effectively. The concept of positioning involves establishing a distinctive place in the minds of target customers relative to competing products.
In “The New Positioning: The Latest on the World's #1 Business Strategy”, Jack Trout distills the essence of positioning into the following four principles
1. A company must establish a position in the minds of its targeted customers.
2. The position should be singular, providing one simple and consistent message.
3. The position must set a company apart from its competitors.
4. A company cannot be all things to all people—it must focus its efforts.
Positioning and Marketing Strategy
Companies use positioning strategies to distinguish their services from competitors and to design communications that convey their desired position to customers and prospects in the chosen market segments. There are a number of different dimensions around which positioning strategies can be developed.
This document provides an overview of marketing channel structure and functions. It discusses how channel members add value through specialization and the division of labor principle. The document also examines different types of marketing channels for consumers and businesses. It explores considerations for selecting and managing multi-channel distribution systems, as well as carefully selecting and developing international channel members. Finally, it summarizes that future distribution channels will be more interactive and challenged by the internet, while international channels will remain important with an adaptive focus on customer preferences.
Service market segmentation and targetingManvi Sehgal
1. Segmentation, targeting, and positioning are strategic marketing fundamentals used to generate competitive advantage and business opportunities. Segmentation involves dividing the market into distinct groups that share common characteristics, needs, behaviors, or patterns.
2. There are four types of service organizations based on their service focus and market focus: unfocused, service focused, market focused, and fully focused. Market segmentation recognizes the need for specialization to suit market segments rather than trying to be all things to all people.
3. Market segmentation leads to more efficient resource utilization, improved market manageability by dividing into smaller parts, and an enhanced ability to satisfy customers. The objectives of segmentation are to identify similarities and differences between buyer needs in segments
This document discusses various aspects of sales and distribution management. It covers the nature of personal selling, defining personal selling as two-way communication between salespeople and customers. It describes the roles and tasks of salespeople, including order taking, order getting, and providing customer service. It also outlines characteristics, limitations, and traits of good salespeople. Additionally, it discusses sales management topics such as organizing the sales force, directing and motivating salespeople, evaluating performance, and addressing ethical issues. Finally, it covers distribution channel design and management, including defining distribution channels, evaluating intermediaries, and planning the optimal channel structure.
This document outlines quantitative and qualitative performance standards for evaluating and controlling sales personnel. It discusses 10 quantitative standards for measuring metrics like quotas, selling expense ratios, territorial profits, market share, call frequency, order ratios, and average order size. It also mentions qualitative standards related to personal factors, adaptability, cooperation, appearance, attitude, and punctuality. The document advocates using multiple quantitative standards simultaneously and notes qualitative standards are also important for a complete evaluation.
The document discusses different types of sales organizations including line, line and staff, functional, and horizontal organizations. It provides the characteristics, advantages, and disadvantages of each type. Additionally, it covers specialization within sales organizations which can be done based on geography, product type, market, or a combination. Different examples of geographic, product, market, and combination specialized sales organizations are described.
Channel Information Systems
Purpose
Information - Advantages
Classification of Information
Information Process
Developing a Channel MIS
Use of Information
Sources of Data
Competition Tracking
Elements of a Channel Information System
Channel Performance Evaluation
IT System for Channels
Intensive Distribution
Rural market research involves systematically collecting, analyzing, and reporting data to understand marketing situations in rural areas. It follows steps like defining problems, designing research, developing hypotheses, planning methodology, data collection, analysis, and conclusions. In rural areas, qualitative studies like assessing acceptability, affordability, awareness, and availability are more common than quantitative studies due to low product penetration. Primary data collection methods for rural research include interviews, focus groups, participatory techniques, and questionnaires. Challenges include accessing rural populations, secondary data limitations, and ensuring comprehension of research tools.
This document discusses the importance and use of customer relationship management (CRM) systems in the retail industry. It begins by noting how customer demands and expectations have changed, requiring retailers to shift from traditional to modern marketing focused on building customer relationships. The rest of the document then discusses what CRM is, how retailers have benefited from implementing CRM systems to collect and analyze customer data, develop targeted programs to increase satisfaction, retention and sales, and new trends in CRM technology.
Sales management involves planning, directing, and controlling personal selling activities like recruiting, selecting, training, assigning, supervising, motivating, and compensating a company's salesforce. It is integrated with marketing management as sales planning must align with marketing planning. A company's marketing team consists of a field selling team that contacts customers, and a headquarter marketing team that supports the field team through activities like promotion, marketing research, logistics, customer service, and coordination. Relationship management in sales includes transactional, value-added, and collaborative selling. Sales roles vary and include deliverers, order takers, sales support, technical support, order getters/creators, and solution vendors.
The role of e business in supply chain managementJohns Joseph
E-business is the execution of business transactions via the
internet.One of the primary benefits of e-business is its ability to cut costs. This technology eliminates the need to have a physical presence.e-business strategies like social media and online advertising involve lower costs than traditional marketing which allows startups and small companies to reach their target audience.
Motivation and Compensation of Sales PeopleKaushik Maitra
The document discusses different types of compensation plans for motivating salespeople, including straight salary plans, straight commission plans, and combination plans. Straight salary plans provide secure income but lack financial incentives for performance. Straight commission plans strongly incentivize performance but may lack focus on customer relationships. Combination plans combine elements to reward performance while providing some security. The optimal plan depends on the sales role and company's objectives.
The document summarizes the process of selecting channel members in 3 steps:
1. Finding prospective members through sources like sales force, trade shows, customers, and advertising.
2. Applying selection criteria to evaluate suitability, focusing on factors like financial stability, facilities, sales coverage, and customer service.
3. Securing selected members by outlining specific partnership benefits like a profitable product line, promotional support, management assistance, and fair dealing policies to develop a mutually beneficial team relationship.
Sales force motivation role, scope and methods shishir200988
This document discusses motivation of salespeople. It defines motivation as the driving force that causes individuals to work towards goals to fulfill needs. For salespeople specifically, motivation is the effort they put into their jobs. The document then discusses different theories of motivation including need hierarchy theory, Herzberg's two-factor theory, ERG theory, and goal setting theory. It also outlines different financial and non-financial rewards that can be used to motivate salespeople. Finally, it discusses factors that influence salesperson motivation over the course of their career.
V47 Ch15 Designing And Managing Integrated Marketing ChannelsBriton33
This document outlines key considerations for designing and managing integrated marketing channels. It discusses the importance of understanding customer needs and value networks. It also covers identifying and evaluating channel alternatives, managing channel relationships, and potential conflicts. Channel integration systems, e-commerce practices, and establishing objectives and constraints are also addressed.
This document discusses designing customer-oriented marketing channels. It explains that distribution channel management is important because channels are the interface with customers, difficult to change, and can bottleneck or differentiate a business. A well-defined channel strategy is needed to achieve segmentation objectives. The document then provides examples of channel structures and flows, as well as considerations for channel design such as product characteristics, customer service demands, requisite channel functions, and costs. The goal of channel configuration is to define the optimal channel flow and structure for each customer segment.
This document provides information on sales force management and sales training. It discusses the meaning and definition of recruitment, characteristics of recruitment, and the process of recruiting salesmen including determining the nature, number, and sources of salesmen. It also covers the meaning of selection, its importance, who selects salesmen, principles and methods used in selection, and selection tests. Finally, it discusses the meaning and objectives of sales training, its importance, types of training, contents of a good training scheme, and planning a sales training program in terms of its aim, content, method of execution, and evaluation.
Channel Management Decisions and Training of Channel MembersMegha Anilkumar
Channel management involves developing marketing techniques and sales strategies to reach customers through various distribution channels. It aims to recognize potential customers, interact with them, and create long-term value. Key factors in effective channel management include recruiting, selecting, motivating, and evaluating channel members such as manufacturers, distributors, wholesalers, resellers, and retailers. Managing relationships within the channel through cooperation, addressing power dynamics, and reducing conflicts is also important for maximizing revenue and profits.
This document discusses service encounters from a lecture presented by Dr. Niraj Chaudhari. It defines a service encounter as the initial interaction between a customer and service provider. More than half of multinational corporations are involved in providing services, making the study of service encounters increasingly important. The document goes on to discuss the triad of a service encounter, its characteristics, types, elements, and the role of technology. It also examines self-service, customer-dominated encounters, contact personnel-dominated encounters, and service organization-dominated encounters. Finally, it briefly mentions the functions, models, control, and design of service organizations.
Service Positioning
After a service strategy has been identified, a company must decide how to position its product most effectively. The concept of positioning involves establishing a distinctive place in the minds of target customers relative to competing products.
In “The New Positioning: The Latest on the World's #1 Business Strategy”, Jack Trout distills the essence of positioning into the following four principles
1. A company must establish a position in the minds of its targeted customers.
2. The position should be singular, providing one simple and consistent message.
3. The position must set a company apart from its competitors.
4. A company cannot be all things to all people—it must focus its efforts.
Positioning and Marketing Strategy
Companies use positioning strategies to distinguish their services from competitors and to design communications that convey their desired position to customers and prospects in the chosen market segments. There are a number of different dimensions around which positioning strategies can be developed.
This document provides an overview of marketing channel structure and functions. It discusses how channel members add value through specialization and the division of labor principle. The document also examines different types of marketing channels for consumers and businesses. It explores considerations for selecting and managing multi-channel distribution systems, as well as carefully selecting and developing international channel members. Finally, it summarizes that future distribution channels will be more interactive and challenged by the internet, while international channels will remain important with an adaptive focus on customer preferences.
Service market segmentation and targetingManvi Sehgal
1. Segmentation, targeting, and positioning are strategic marketing fundamentals used to generate competitive advantage and business opportunities. Segmentation involves dividing the market into distinct groups that share common characteristics, needs, behaviors, or patterns.
2. There are four types of service organizations based on their service focus and market focus: unfocused, service focused, market focused, and fully focused. Market segmentation recognizes the need for specialization to suit market segments rather than trying to be all things to all people.
3. Market segmentation leads to more efficient resource utilization, improved market manageability by dividing into smaller parts, and an enhanced ability to satisfy customers. The objectives of segmentation are to identify similarities and differences between buyer needs in segments
This document discusses various aspects of sales and distribution management. It covers the nature of personal selling, defining personal selling as two-way communication between salespeople and customers. It describes the roles and tasks of salespeople, including order taking, order getting, and providing customer service. It also outlines characteristics, limitations, and traits of good salespeople. Additionally, it discusses sales management topics such as organizing the sales force, directing and motivating salespeople, evaluating performance, and addressing ethical issues. Finally, it covers distribution channel design and management, including defining distribution channels, evaluating intermediaries, and planning the optimal channel structure.
This document outlines quantitative and qualitative performance standards for evaluating and controlling sales personnel. It discusses 10 quantitative standards for measuring metrics like quotas, selling expense ratios, territorial profits, market share, call frequency, order ratios, and average order size. It also mentions qualitative standards related to personal factors, adaptability, cooperation, appearance, attitude, and punctuality. The document advocates using multiple quantitative standards simultaneously and notes qualitative standards are also important for a complete evaluation.
The document discusses different types of sales organizations including line, line and staff, functional, and horizontal organizations. It provides the characteristics, advantages, and disadvantages of each type. Additionally, it covers specialization within sales organizations which can be done based on geography, product type, market, or a combination. Different examples of geographic, product, market, and combination specialized sales organizations are described.
Channel Information Systems
Purpose
Information - Advantages
Classification of Information
Information Process
Developing a Channel MIS
Use of Information
Sources of Data
Competition Tracking
Elements of a Channel Information System
Channel Performance Evaluation
IT System for Channels
Intensive Distribution
Rural market research involves systematically collecting, analyzing, and reporting data to understand marketing situations in rural areas. It follows steps like defining problems, designing research, developing hypotheses, planning methodology, data collection, analysis, and conclusions. In rural areas, qualitative studies like assessing acceptability, affordability, awareness, and availability are more common than quantitative studies due to low product penetration. Primary data collection methods for rural research include interviews, focus groups, participatory techniques, and questionnaires. Challenges include accessing rural populations, secondary data limitations, and ensuring comprehension of research tools.
This document discusses the importance and use of customer relationship management (CRM) systems in the retail industry. It begins by noting how customer demands and expectations have changed, requiring retailers to shift from traditional to modern marketing focused on building customer relationships. The rest of the document then discusses what CRM is, how retailers have benefited from implementing CRM systems to collect and analyze customer data, develop targeted programs to increase satisfaction, retention and sales, and new trends in CRM technology.
Sales management involves planning, directing, and controlling personal selling activities like recruiting, selecting, training, assigning, supervising, motivating, and compensating a company's salesforce. It is integrated with marketing management as sales planning must align with marketing planning. A company's marketing team consists of a field selling team that contacts customers, and a headquarter marketing team that supports the field team through activities like promotion, marketing research, logistics, customer service, and coordination. Relationship management in sales includes transactional, value-added, and collaborative selling. Sales roles vary and include deliverers, order takers, sales support, technical support, order getters/creators, and solution vendors.
The role of e business in supply chain managementJohns Joseph
E-business is the execution of business transactions via the
internet.One of the primary benefits of e-business is its ability to cut costs. This technology eliminates the need to have a physical presence.e-business strategies like social media and online advertising involve lower costs than traditional marketing which allows startups and small companies to reach their target audience.
Motivation and Compensation of Sales PeopleKaushik Maitra
The document discusses different types of compensation plans for motivating salespeople, including straight salary plans, straight commission plans, and combination plans. Straight salary plans provide secure income but lack financial incentives for performance. Straight commission plans strongly incentivize performance but may lack focus on customer relationships. Combination plans combine elements to reward performance while providing some security. The optimal plan depends on the sales role and company's objectives.
The document summarizes the process of selecting channel members in 3 steps:
1. Finding prospective members through sources like sales force, trade shows, customers, and advertising.
2. Applying selection criteria to evaluate suitability, focusing on factors like financial stability, facilities, sales coverage, and customer service.
3. Securing selected members by outlining specific partnership benefits like a profitable product line, promotional support, management assistance, and fair dealing policies to develop a mutually beneficial team relationship.
Sales force motivation role, scope and methods shishir200988
This document discusses motivation of salespeople. It defines motivation as the driving force that causes individuals to work towards goals to fulfill needs. For salespeople specifically, motivation is the effort they put into their jobs. The document then discusses different theories of motivation including need hierarchy theory, Herzberg's two-factor theory, ERG theory, and goal setting theory. It also outlines different financial and non-financial rewards that can be used to motivate salespeople. Finally, it discusses factors that influence salesperson motivation over the course of their career.
V47 Ch15 Designing And Managing Integrated Marketing ChannelsBriton33
This document outlines key considerations for designing and managing integrated marketing channels. It discusses the importance of understanding customer needs and value networks. It also covers identifying and evaluating channel alternatives, managing channel relationships, and potential conflicts. Channel integration systems, e-commerce practices, and establishing objectives and constraints are also addressed.
This document discusses designing customer-oriented marketing channels. It explains that distribution channel management is important because channels are the interface with customers, difficult to change, and can bottleneck or differentiate a business. A well-defined channel strategy is needed to achieve segmentation objectives. The document then provides examples of channel structures and flows, as well as considerations for channel design such as product characteristics, customer service demands, requisite channel functions, and costs. The goal of channel configuration is to define the optimal channel flow and structure for each customer segment.
1) Marketing channels exist to perform needed functions like distribution at lower cost than if a customer or manufacturer acted alone.
2) When designing distribution channels, key objectives include increasing product availability, satisfying customer service needs, ensuring promotional support, obtaining market information, maintaining cost-effectiveness and flexibility.
3) Common institutions in marketing channels include merchant wholesalers, agents, retailers and non-store retailers. The best alternative depends on the priorities around these objectives and a company's competitive strategy.
The document discusses factors to consider when designing distribution channels. It outlines a multi-step channel planning and design process that includes: segmenting and positioning target customer groups; defining customer needs; evaluating alternative channels; selecting and training channel partners; motivating partners; and implementing the channel design. Key factors addressed are defining objectives, costs, roles of intermediaries, partner selection criteria, training, and performance management to ensure the channel meets business goals in an efficient and effective manner.
The Indian media and entertainment industry is valued at over $17 billion and is expected to grow at a rate of 14.3% over the next five years, higher than the global growth rate of 5.1%. Television is the largest and most consistent sector, nearly four times the size of the film industry, while digital media is growing rapidly at 38.2% of total revenues. The film industry produces over 1,400 films per year but generates less box office revenue than a single Hollywood film. Increased digitization and infrastructure growth are keys to the further development of the industry.
This document discusses distribution channels and sales promotion techniques. It defines distribution channels as the interconnected organizations involved in making a product available to consumers. The objectives of distribution include consumer satisfaction and profitability. It also discusses channel design decisions, functions like order processing and inventory management, and channel management considerations like identifying consumer needs and selecting the optimal channel structure.
This document provides an overview of channels of distribution from a presentation on sales and advertising management. It defines channels of distribution as the ways that goods and services are distributed from manufacturers to consumers. The document outlines various definitions of channels of distribution from different authors. It discusses the characteristics and elements of channels of distribution, including that they are routes that goods and services flow through composed of intermediaries like wholesalers and retailers. The document also covers the functions of channels of distribution, factors that determine choice of channels, and factors relating to products, companies, markets, middlemen, and the environment that influence channel selection.
This document discusses marketing channels and distribution. It defines marketing channels as the interconnected organizations involved in making a product available for consumption. Channels of distribution include multiple levels from manufacturers to consumers, such as wholesalers and retailers. Intermediaries are middlemen that take ownership of goods and sell them for profit. Key intermediaries discussed are wholesalers, retailers, and agent middlemen like brokers. Important factors in choosing distribution channels include product characteristics, market forces, institutional capabilities, and environmental considerations.
This document provides an overview of industrial product and service distribution channels. It discusses key concepts like channel functions, objectives, alternatives, and systems. The major question for manufacturers is who will perform various channel functions to balance efficiency, effectiveness, and the potential for functions to shift among members. Distribution strategies like exclusive, selective, and intensive distribution are outlined. Developing cooperative relationships and managing conflict between manufacturers and distributors is also addressed to motivate channel members and improve system performance. The document provides a framework to analyze, implement, and modify distribution channels based on product/market factors and member responsibilities.
This document discusses various aspects of distributing services through physical and electronic channels. It covers factors like how services should be distributed based on customer needs, strategic and tactical considerations for service facility locations, the role of intermediaries like franchising in distribution, and challenges of distributing services in large domestic markets. Key points addressed include convenience, selection, and pricing as factors attracting customers to online services, and extending service hours based on customer and economic incentives.
Using of Target Costing in Different Industry : Auto, IT and BankingNabduan Duangmanee
The document discusses how different industries implement target costing to meet customer expectations. It provides examples from the automotive, technological, circuit board, and banking industries.
In the automotive industry, Toyota uses kaizen costing where teams work together to ensure product costs allow for profitability at the required market price. In technology, HP uses target costing in printer development to balance performance and costs as product lifecycles shorten. PCB manufacturers negotiate with suppliers and use value engineering to achieve target costs. The Central Bank of Morocco implemented ABC to improve performance, quality of service, and understand costs better for strategic planning.
The document discusses logistics channels and network configuration. It defines direct and indirect distribution channels and the roles of intermediaries. The objective of logistics network design is to minimize annual system-wide costs while meeting service requirements. Key issues in network design include facility location and size, sourcing strategies, and distribution channels. Mapping and data are important components for network design tools to visualize solutions and quantify costs. Customers are often aggregated into zones to simplify network planning while balancing accuracy and complexity.
The document provides an overview of key concepts in supply chain management. It discusses that a supply chain involves all parties involved in fulfilling customer requests, including manufacturers, suppliers, transporters, warehouses, retailers, and customers. The primary purpose is to satisfy customer needs and generate profit. It also outlines the objective of maximizing overall value generated across the supply chain. Additionally, it discusses key decision phases in supply chain management including strategy, planning, and operations. Finally, it identifies various drivers of supply chain performance, such as facilities, inventory, transportation, information, sourcing, and pricing, that impact responsiveness and efficiency.
This document provides an introduction to supply chain concepts. It defines a supply chain as a set of entities directly involved in upstream and downstream flows from suppliers to customers. Supply chain management (SCM) involves integrating organizational units along the supply chain and coordinating materials, information, and financial flows to meet customer demands. The objective of SCM is to maximize overall value creation across the supply chain by balancing costs and profits. The document also discusses key supply chain processes like production, inventory, transportation, and information management that can be optimized for responsiveness to customers or operational efficiency.
The document discusses physical distribution and distribution channels. It describes distribution channels as a set of interdependent organizations that make products available for use. Channel decisions affect other marketing decisions and involve long-term commitments. Intermediaries provide efficiency, contacts, experience, specialization, and scale of operation to match supply and demand. Channel functions include information, promotion, contact, matching, negotiation, physical distribution, and financing. The document also discusses physical distribution management tasks like order processing, inventory control, inventory location and warehousing, materials handling, and transportation.
The document provides an overview of supply chain management (SCM) concepts. It discusses key SCM elements like inventory management, warehousing, and transportation. Specifically, it covers topics such as:
- Defining SCM and the flow of materials, money, and information through the supply chain.
- Principles of inventory management including classifying inventory using ABC analysis and determining optimal inventory levels.
- Elements of effective warehousing like location, layout, identification, and material handling.
- Factors that influence transportation decisions and methods to optimize routing and carrier selection.
- Performance metrics like fill rate and ways to reduce costs in the supply chain.
The document discusses optimization of retail supply chains. It covers:
1) Retail supply chain management involves planning inventory, purchasing, logistics, and ensuring the right products reach customers at the right time.
2) Challenges include managing high volumes, fast-moving products, and short cycle times while maintaining quality. Information technology helps improve efficiency.
3) Optimization aims to have the right product in the right place at the right time by improving forecasting, inventory tracking, ordering, logistics, and using IT to be responsive to changes. This balances costs like inventory and transportation while delivering low costs and high profits.
The document discusses how supply chain analytics can help organizations optimize their supply chain operations. It describes how the changing role of consumers has impacted supply chains and the need for collaboration, visibility, and efficiency across the supply chain. It then provides examples of different types of supply chain analytics and insights organizations can gain in areas like executive dashboards, supply chain design, demand forecasting, pricing, inventory management, and more. It also provides a brief case study of how Team Computers implemented an analytics solution for Parle Products to track stock levels, sales, and shortfalls.
The document discusses factors that influence distribution network design. It describes six main distribution network design options: 1) manufacturer storage with direct shipping, 2) manufacturer storage with direct shipping and in-transit merge, 3) distributor storage with carrier delivery, 4) distributor storage with last-mile delivery, 5) manufacturer/distributor storage with customer pickup, and 6) retail storage with customer pickup. The design options are evaluated based on how well they meet customer needs like response time, product variety and availability, while minimizing costs like inventory and transportation. Supply chain network design also considers the allocation of facilities, capacity, markets and suppliers to optimize costs and service.
The document discusses physical distribution and transportation management for logistics and supply chain management. It describes the center of gravity method, which is a mathematical technique used to find an optimal facility location that minimizes distribution costs. An example is provided showing hypothetical location data and calculations to determine the center of gravity and optimal location coordinates. Advantages of the method include simplicity and ease of use for large problems, while disadvantages include limitations for some real-world situations.
Lecture Intranets and supply chain management.pptxSamaLexalexis
An intranet is an internal network within an organization that uses TCP/IP protocols like the internet. An extranet allows controlled external access through authentication. Intranets and extranets are commonly used in large companies for information sharing. Effective supply chain management (SCM) involves planning, sourcing, production, delivery, and returns across a network of suppliers, producers, distributors, and customers. Key benefits of SCM include reduced costs, improved quality and customer satisfaction.
This document provides an overview of a management systems operations strategy course. It includes discussions on competitive priorities and operations performance objectives like quality, speed, dependability, flexibility and cost. It discusses how the meaning and importance of these objectives can vary across different industries and companies. It also covers topics like developing an operations strategy through reconciling market requirements with operations resources, capabilities and processes. Trade-offs between objectives and building competitive capabilities over time are also summarized. The instructor engages participants in exercises to analyze specific companies' market needs, resources and how to develop focused strategies.
The document discusses various distribution strategies and concepts. It begins by defining distribution strategies and describing different channel types like intensive, selective, and exclusive distribution. It then discusses direct shipping and its advantages and challenges. Other concepts covered include intermediate inventory points distribution, traditional warehousing versus cross-docking versus centralized pooling strategies, transportation and transhipment.
Similar to Designing customer oriented marketing channels (20)
Mastering Local SEO for Service Businesses in the AI Era"" is tailored specifically for local service providers like plumbers, dentists, and others seeking to dominate their local search landscape. This session delves into leveraging AI advancements to enhance your online visibility and search rankings through the Content Factory model, designed for creating high-impact, SEO-driven content. Discover the Dollar-a-Day advertising strategy, a cost-effective approach to boost your local SEO efforts and attract more customers with minimal investment. Gain practical insights on optimizing your online presence to meet the specific needs of local service seekers, ensuring your business not only appears but stands out in local searches. This concise, action-oriented workshop is your roadmap to navigating the complexities of digital marketing in the AI age, driving more leads, conversions, and ultimately, success for your local service business.
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Key Takeaways:
Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
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Empowering Influencers: The New Center of Brand-Consumer Dynamics
In the current market landscape, establishing genuine connections with consumers is crucial. This presentation, "Empowering Influencers: The New Center of Brand-Consumer Dynamics," explores how influencers have become pivotal in shaping brand-consumer relationships. We will examine the strategic use of influencers to create authentic, engaging narratives that resonate deeply with target audiences, driving success in the evolved purchase funnel.
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Google Ads Vs Social Media Ads-A comparative analysisakashrawdot
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3: Grow revenue at lower costs with more efficient marketing and business operations.
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Yes, It's Your Fault Book Launch WebinarDemandbase
From Blame to Gain: Achieving Sales and Marketing Alignment to Drive B2B Growth.
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2. How channel members add value
Mitigating risk , minimizing management cost, maximizing utility
3. Why is distribution channel management so
important
• The distribution channels are the interface with the customers.
• Channel decision are difficult to change.
• Channels could be a major bottleneck.
• Channel could be used as a differentiator.
• A well defined channel strategy is needed to achieve the segmentation objective.
4. What is customer oriented channel
• The channel in which the design objectives are predominantly on the basis of
customer requirements.
• The idea is to design and implement a distribution channel that can deliver the
services desired by the target customers in the most viable manner.
• It is to be understood that while customers would seek certain level of
convenience, the cost of delivering that convenience is also an important factor.
• Customer oriented channel should make a trade-off between the level of service
provided and the cost involved in providing that service.
5. Designing a customer oriented channel
• It starts with the analysis of the service demands of the customer segments sought to be
targeted by the channel.
• Once the specific needs of the customers are known, it becomes easy to work and decide
on the activities to be performed and the type of entity best suited to perform the
activities.
• However, it may not always be feasible to offer services at the desired levels. Reason
could be the enormous cost involved or it might be logistically impossible.
6. • For instance,
A chain smoker would like to have a facility wherein if he rings up a shop, cigarettes in
small quantity would be delivered at his house. It is logistically possible, but will be
highly costly.
Similarly,
If a manufacturing plant wants its raw material to be delivered within a few hours of
ordering, it may not be possible most often because, even if it is not very costly, the
existing distribution setup would preclude it.
7. Channel design process
List down all service outputs that the channel needs to offer.
Develop the levels at which each of the service outputs have to be offered.
Work back from each of the service output levels and conceive the activities that have to be
performed to fulfill these service output objectives.
Calculate the cost incurred for performing these activities.
Design the ideal channel structure, which will consist of a network of members performing certain
functions so that the service output objectives are achieved at minimum cost.
Compare the ideal channel structure with the channel structure that is existing in reality so as to
modify the ideal channel structure.
Assess the ideal channel design within terms of channel selection criteria like effectiveness,
efficiency,equity,scalability and flexibility.
Develop the channel establishment/ modification plan.
8. Capturing the customer requirements
• Service output demand framework helps in capturing the needs of customers in an
objective and systematic manner.
Bulk breaking:
• A process wherein goods that are manufactured in large volumes are broken into
smaller units at different locations which are consumed by the end consumers.
• Some necessary functions that the channel has to perform to offer the desired lot
size include:
• Ordering and payment collection at a massive scale.
• Storage space.
9. Spatial convenience:
• defined as the extent of convenience offered by the channel in terms of the
distance that a customer has to travel before availing the service of the channel.
• It depends on the measure of channel intensity.
• Customers, usually draw up a mental estimate of the distance that they will travel
to acquire a product or service at a particular price.
• An effective method of measuring the adequacy of the intensity of distribution is
to benchmark it with your competitors.
10. • E.g.: a housewife would normally prefer to buy all her groceries from shops which
are at a distance of not more than 2 miles from her residence.
but if the same groceries are available at 10% less, she would not mind travelling
another two miles to buy it at cheaper rate.
Though if a 20% discount is available at a store that is 50 miles away, she certainly
would not that far just for that extra 10% reduction.
Thus, we can generalize that the distance a customer is willing to travel to purchase a
product is proportional to the unit price of that product.
11. Waiting time:
• Time that the customer has to spend before availing of the services of the channel.
• If one has to purchase a bottle of soft drink, one expects the waiting time to be zero. At
the same, if one is about to purchase a car, one would not mind waiting for a couple of
weeks.
• The extent to which a consumer would tolerate a waiting period would depend on
factors such as product characteristics, purchase occasion and consumers inherent
tolerance capacity.
12. Assortment:
• Generally, products are brought in assortment.
• Assortment is the service which involves making available at one place products
that are normally bought together.
• HP India understood the need of small and medium business enterprises and is
planning to set up a one-stop shop to fulfill all their IT needs.
• Called “ XtremeValue Business Points”, these outlets will have all the solution and
services needed.
• Eg. Customer buying a watch would be very happy if watch repairing service is also
available at the same premises.
14. Classification scheme of channel flows
FLOW NAME EXPLANATION
PHYSICAL POSSESSION Transportation and storage of the product in order to physically deliver
the product to the end user.
OWNERSHIP Nominally taking title to the product so that in case the product is
damaged or lost due to any reason, the loss is accounted for.
PROMOTION Promoting the product to the customers in several ways such as
advertising, displaying, demonstrating etc.
NEGOTIATING Coming to an agreement about the terms of trade with the channel
entities including the customer.
FINANCING Taking care of the financial requirements (working capital) of members of
the channel.
RISKTAKING Underwriting the risk associated with the possession or ownership of the
channel including warranties for after sale services.
ORDERING Receiving and recording the order, consolidating it and passing it on to
other channel members.
PAYMENT Receiving payment, recording it, consolidating it and passing it to other
channel member.
15. Linking the service output objectives to the flows
• Physical possession flow directly contributes towards achieving greater level of spatial
convenience, reducing the lot size required and bulk breaking and waiting time
reduction.
• If the physical possession activity is not performed in the most ideal manner the
products will go out of stock quiet often as they will not be stored nor transported at the
right place and at the right time.
• Physical possession also contributes indirectly to the assortment flow as transportation
and stocking activities are considered to bring together the most appropriate
assortment of goods for the customer.
16. • Ownership flow contributes indirectly towards achieving greater levels of spatial
convenience.
• Ownership flow enable the channel to pass on the costs associated with the ownership of the
product through the channel.
FLOW DIRECT CONTRIBUTION INDIRECT CONTRIBUTION
PHYSICAL POSSESSION Spatial convenience, bulk
breaking, waiting time
Assortment
OWNERSHIP Spatial convenience
PROMOTION Spatial convenience
NEGOTIATION Spatial convenience, bulk
breaking
Assortment
RISK-TAKING Waiting time, bulk breaking,
spatial convenience
FINANCING Spatial convenience, waiting
time, bulk breaking
Assortment
ORDERING Bulk breaking, spatial
convenience, waiting time
PAYMENT Bulk breaking, spatial
convenience, waiting time
17. Conducting cost analysis
• The cost associated with all the flows adds up to form the cost of distribution.The
cost of distribution of any distribution system will normally reflect the price of the
product to be paid by the customer.
• eg. If a product is produced at a far off location, a part of price paid by the
customers include the cost of transportation of goods.
• One of the biggest hurdle in estimating cost is the non- availability of precise and
accurate costing data.This is because the costs are incurred at several points in the
distribution process and by several parties.
18. • While designing ideal channel, it is important to consider the remuneration that
each channel member has to receive.The remuneration should not be confused
with margin.
• Margin includes both the remuneration as well as the amount required to perform
the activity.
• Eg. If the margin received by the channel member id 10% and works out to say
Rs.200, it would cover both the cost incurred as well as the profit.
• The remuneration has to be in tune with:
(a)The cost of performing the activity
(b)The criticality of the activity
19. Designing the ideal channel
• The design effort would involve decisions about:
(a)Service output levels
(b)Flow or activities associated with the achievement of service output levels
(c)Type of entity that would be entrusted with the performance of each of these flows.
• Having understood the needs of the customers with regard to the channel service
outputs from the analysis of the customers and competitor’s level of service output
offerings, the channel designer would have a fair idea about the objectives to be set for
the service output types and also any new type of service output valued by the
customer
• The next step on designing the ideal channel is to see how these requirements can
actually be achieved.
20. • Eg.Taking the case of Lakme :
• While most cosmetic manufacturers concentrated on achieving higher levels of
spatial convenience, Lakme differentiated itself by providing beauty advice to the
customers who visited select shops.
• The company brought in promotion as a service output to be provided by the
channel.
• The company arranged to appoint specially trained sales person to advice the
customers about the type of cosmetic that will suit them.
21. Comparing the ideal with reality
• The need for looking a existing distribution system emanates from two reasons:
(a)Existing distribution system would give ideas and insights about the task
performed by the entities and problems if any related to it.
(b)The need to understand the equilibrium that exists in the system.
• Equilibrium in a channel system would mean that all the members in the system
are getting sufficient rewards to motivate them to perform their tasks in the most
effective manner and also that all the needs of the customers are met to the extent
the customers are willing to pay for.
• The best channel design practice is to conceive the ideal design and compare it
with the existing system and make modifications wherever feasible.
22. Comparing the channel designs
• Channel designs are compared in terms of following criteria:
Effectiveness:
analyzing whether objectives set for the channel are achieved. eg,. If one of the
objective includes zero waiting time, the effectiveness criterion would look at
whether this service objective can be achieved without fail by the channel system.
Efficiency:
Concerned with the inputs expended for achieving the level of outputs. If two channel
deliver the same output but one channel design requires fewer inputs then it is
deemed to be mare efficient.
23. Equity:
The constituents of the channel should be remunerated to the extent of their
participation in the channel. If remuneration pattern does not follow equity principle
the entire channel would become highly unstable and ineffective.
Scalability:
If there is an unusual surge in demand can the channel system handle it?This criterion
becomes important in case of products where it is not very easy to predict demand
accurately.
Flexibility:
If the demand pattern changes or new products are introduced at frequent intervals,
will the channel system be able to fulfill the rapidly changing demand?
24. Channel establishment plan
• It is the detailed blueprint of the process of setting up the channel. It includes:
• The main purpose of the channel to be set up: it is a statement of the aims and
objectives of the channel.
• The profile of the customers who are the target market for the channel:
describing the characteristics relevant to the channel. If a channel is set up to
deliver pizzas, the profile can be defined in terms of geographic location, average
family income etc.
• Needs and requirements of the target market with regards to the identified
service outputs provided by proposed or existing channel
25. • Analysis of the operations of the existing channels that deal in similar
product/service line: essential to understand the logistical complexities as well as set
benchmarks for the channel.
• Detailed activity chart for achieving the service output objectives: list of activities as
well as the sequence of performing these activities for achieving the objectives of the
channel.
• Details about the various channel constituents who will be performing these tasks:
the channel would include specialists vs. non- specialists. Eg.The distributor would be
exclusive or can the distributor carry other lines? Will the distributor take title to the
goods?
26. • The cost of performing the activities: coting has to be carried out so that the total
cost of he channel can be ascertained.
• The designated roles and responsibilities of the channel constituents: it is
important to have clear understanding of the purpose served by a channel member
in the channel system.
• The proposed remuneration for performing the roles and responsibilities:
remuneration would reflect the roles and responsibilities to be performed as well as
the cost of performing these activities.
27. Standards for measuring the performance: most of the performance standards are based on
achievement of targeted sales. Building a customer oriented performance measure is an
important component of designing a customer oriented channel.
Procedures foe reporting and information sharing: reporting framework must specify the
type of information that has to be shared, the periodicity of sharing the information, the
mode of providing the information etc.
Monitoring mechanism: includes reports that have to be sent on regular basis, plan for
personal inspection and visits by the representatives of the parent company and other point of
contact between the company and channel embers.
Criteria for appointing the channel members: the components of criteria would include
factors such as:
(i) investment capability
(ii) Related experience
(iii)Past history etc.