Distribution Management PDF

11/29/24 Additional Perspectives on Marketing Channels 1.Online channel systems and management 2.Franchise marketing channels 3.Marketing channels for services 4.Global marketing channels 1 What is Online Channel Systems and...

11/29/24 Additional Perspectives on Marketing Channels 1.Online channel systems and management 2.Franchise marketing channels 3.Marketing channels for services 4.Global marketing channels 1 What is Online Channel Systems and Management? Online Channel System and Management refers to the structure, processes, and strategies used to sell, promote, and deliver products or services via digital platforms. These systems leverage the internet to connect businesses with customers, enabling transactions and interactions without the need for physical locations. Effective management of these channels involves integrating technology, optimizing logistics, and maintaining customer trust. 2 1  11/29/24 Examples of Online Channels: E-commerce platforms: Lazada, Shopee Social media marketplaces: Facebook Marketplace, Instagram Shops Business websites: Branded online stores offering direct purchases Aggregator platforms: GrabFood, Foodpanda (for services like food delivery) 3 Importance of Online Channels Accessibility: Customers can shop anytime, anywhere. Cost-Effectiveness: Eliminates expenses related to physical stores. Broader Reach: Targets local and global audiences. Customer Insights: Tracks user behavior and preferences using analytics. 4 2  11/29/24 Management of Online Channels: Technology Integration: Includes payment systems (e.g., GCash, PayPal) and logistics (e.g., delivery through Grab, J&T). User Experience: Focus on simple navigation, mobile-friendly design, and secure transactions. Marketing: Utilize digital advertising, SEO, and social media to drive traffic and engagement. Customer Support: Immediate assistance through chatbots, FAQs, or live chat. 5 Example from the Philippines: Lazada and Shopee: Popular e- commerce platforms that have partnered with local MSMEs to expand their market. Sari-Sari Stores Using Apps: Small retailers use Packworks to digitize operations and sell online, combining traditional and modern retail systems. 6 3  11/29/24 What is Franchise Marketing Channels? Franchise Marketing Channels refer to the distribution and promotional system where a franchisor provides a licensed business model, brand, and support to franchisees who operate individual outlets. These channels rely on a network of independent franchisees that deliver consistent goods and services under a unified brand. 7 Features of Franchise Marketing Channels Franchisor’s Role Franchisee’s Role Unified Branding Shared Marketing Efforts 8 4  11/29/24 1. Franchisor's Role: – Provides the business model, brand, training, marketing support, and operational guidelines. – Ensures the quality and consistency of products and services across all franchise outlets. 2. Franchisee's Role: – Invests in the franchise license and runs the outlet according to the franchisor's standards. – Shares profits or pays royalties to the franchisor. 3. Unified Branding: – All franchise outlets operate under the same brand name, ensuring consistency in customer experience. 4. Shared Marketing Efforts: – The franchisor often leads national-level campaigns, while franchisees may handle local promotions. 9 Advantages and Challenges of Marketing Channels Advantages: – For Franchisors: Rapid market penetration and revenue through franchising fees and royalties. – For Franchisees: Lower risk due to a proven business model and strong brand support. Challenges: Maintaining brand consistency across all outlets. Managing franchisee compliance with operational and quality standards. 10 5  11/29/24 Examples of Franchise Marketing Channels: Jollibee Foods Corporation: One of the most successful franchise systems in the country. Franchisees operate under Jollibee's strict quality and operational guidelines, ensuring the iconic taste and service quality are consistent nationwide. Mang Inasal: A popular grilled chicken franchise under the Jollibee group, known for its unlimited rice offering. Franchisees benefit from strong brand recognition and national marketing campaigns. 11 What is Marketing Channels for Services? Marketing channels for services are the pathways or methods used to deliver intangible offerings (services) from providers to consumers. Unlike physical goods, services cannot be stored, transported, or inventoried, so their marketing channels often emphasize direct interactions, technology, and convenience. 12 6  11/29/24 Characteristics of Marketing Channel for Services 1. Intangibility 2. Inseparability 3. Perishability 4. Variability 13 Intangibility: Services cannot be seen, touched, or owned; they are experiences or actions. Example: A spa massage or a consultation with a doctor. Inseparability: Services are produced and consumed simultaneously. Example: A Grab ride happens while the driver provides the service. Perishability: Services cannot be stored for later use. Example: An unbooked hotel room on a specific night is a lost opportunity. Variability: Quality may vary depending on who delivers the service, when, and where. Example: Customer satisfaction in BPO services can differ based on agent performance. 14 7  11/29/24 Common Marketing Channels for Services: Direct Channels Online Platforms Intermediaries Franchised Outlets 15 Direct Channels: The provider directly interacts with customers. Example: A dentist offering services at their clinic. Online Platforms: Apps or websites where customers book or consume services. Example: Grab (transportation, food delivery), Angkas (motorcycle ride-hailing). Intermediaries: Agents or brokers who connect service providers with consumers. Example: Travel agencies facilitating bookings for airlines and hotels. Franchised Outlets: Standardized services offered through franchised locations. Example: The generics pharmacy clinics offering health consultations. 16 8  11/29/24 Examples from the Philippines: Business Process Outsourcing (BPO): – Filipino BPO companies like Concentrix and Teleperformance provide customer support and IT services to international clients through online and voice channels. Ride-Hailing and Delivery Services: – Grab and Foodpanda serve as platforms for transportation and food delivery services, connecting customers with drivers and restaurants. Educational Services: – Online learning platforms like Edukasyon.ph or locally-based tutoring apps connect students with teachers. Healthcare Services: – Telemedicine apps such as KonsultaMD provide online doctor consultations to Filipinos, particularly in remote areas. 17 What is Global Marketing Channels? Global marketing channels refer to the networks and systems businesses use to distribute products and services across international borders. These channels connect businesses with global customers and include intermediaries, logistics providers, digital platforms, and direct selling methods. 18 9  11/29/24 Key features of Global Marketing Channels Scope and Reach Modes of Operation Challenges Benefits 19 Scope and Reach: Facilitates access to international markets. Helps businesses overcome geographical and cultural barriers. Modes of Operation: Exporting: Selling products directly to foreign markets. Local Partnerships: Collaborating with distributors or retailers in the target country. Online Sales: Using e-commerce platforms to sell globally. Challenges: Adhering to international regulations and trade agreements. Managing logistics across long distances. Adapting to cultural and consumer preferences. Benefits: Expands revenue streams beyond domestic markets. Builds brand presence and recognition globally. Diversifies customer base to reduce reliance on local markets. 20 10  11/29/24 Examples from the Philippines: San Miguel Corporation (SMC): – Exports its beverages and food products, such as San Miguel Beer, to Asia, North America, and Europe. SMC uses a combination of direct export and partnerships with local distributors. Philippine Artisanal Goods: – Products like rattan furniture, capiz shell décor, and handmade jewelry are sold worldwide through platforms like Etsy and Alibaba. Small-scale producers benefit from global e-commerce to reach international buyers. Jollibee Foods Corporation (JFC): – Operates franchised stores in countries like the United States, Canada, and the Middle East. JFC adapts its menu to cater to the local tastes of each market while maintaining its core offerings. Filipino Freelancers and BPO Services: – Philippine BPO firms provide customer service, IT, and back-office support to global clients. Platforms like Upwork and Fiverr allow Filipino freelancers to market their services worldwide. 21 QUESTIONS? 22 11  11/29/24 23 24 12