Channel Management/Distribution Strategy and Marketing Mix PDF

CHANNEL MANAGEMENT/ DISTRIBUTION STRATEGY AND MARKETING MIX DR. ROXANNE V. SELMO CHANNEL MANAGEMENT  refersto the process of overseeing and coordinating the different channels through which a company delivers its products or services to customers. These channels could be physical locations...

CHANNEL MANAGEMENT/ DISTRIBUTION STRATEGY AND MARKETING MIX DR. ROXANNE V. SELMO CHANNEL MANAGEMENT  refersto the process of overseeing and coordinating the different channels through which a company delivers its products or services to customers. These channels could be physical locations (like retail stores), digital platforms (such as e- commerce websites), or intermediaries (distributors, wholesalers, agents). Key components of channel management  Channel Strategy: Determining the most effective way to reach the target market, which may involve direct sales, online channels, partnerships, or using multiple channels simultaneously (multi- channel strategy).  Channel Partner Selection: Choosing the right intermediaries or partners, such as wholesalers or retailers, to represent the brand and sell the products. Key components of channel management  Channel Relationships: Maintaining strong and collaborative relationships with channel partners through regular communication, training, and support.  Channel Performance Monitoring: Measuring the effectiveness of each channel through sales data, customer feedback, and market analysis to identify areas for improvement. DISTRIBUTION STRATEGY  refersto a plan developed by a company to deliver its products or services to customers efficiently and effectively. It involves selecting the most suitable distribution channels and methods to ensure that products reach the target market in a timely and cost-effective manner. Types of Distribution Strategies  Intensive Distribution:  Goal: Maximize product availability by distributing through as many outlets as possible.  Suitable for: Consumer goods like soft drinks, snacks, and other everyday products.  Example: Coca-Cola is available in grocery stores, vending machines, restaurants, and convenience stores globally. Types of Distribution Strategies  Selective Distribution:  Goal: Distribute products through a limited number of carefully selected intermediaries.  Suitable for: Products that require more explanation or service, such as electronics, fashion items, or home appliances.  Example: Brands like Apple or Samsung may sell their products through selected electronics retailers and their own stores. Types of Distribution Strategies  Exclusive Distribution:  Goal: Grant exclusive rights to a single distributor or retailer within a specific area.  Suitable for: High-end, luxury, or specialty products that benefit from an exclusive, premium image.  Example: High-end car brands like Ferrari or Rolex watches are sold through a very limited number of dealerships or stores. Factors Influencing Distribution Strategy:  Market Characteristics  Product Characteristics  Cost Considerations  Competition  Company Resources MARKETING MIX  isa set of controllable, tactical tools that a company uses to promote its products or services in the market.  4Ps (Product, Price, Place, and Promotion), these elements help businesses meet customer needs while achieving their marketing objectives. EMERGENCE OF MARKETING CHANNELS  refers to the evolution and development of various pathways through which businesses deliver goods and services to their target consumers. Stages in the Emergence of Marketing Channels Traditional Channels (Early Commerce)  Inthe early stages of commerce, direct sales were the primary marketing channel. Producers would sell directly to customers through face-to-face transactions in local markets, fairs, or their own shops. Industrial Revolution and Mass Production  TheIndustrial Revolution in the 18th and 19th centuries drastically changed production capabilities, leading to mass production. With larger volumes of goods being produced, businesses needed more sophisticated distribution systems to reach broader. Industrial Revolution and Mass Production  Wholesalers became important as they could buy in bulk from manufacturers and distribute products to multiple retailers. Globalization and Expansion of Distribution Networks  The 20th century saw the expansion of marketing channels on a global scale. Transportation advancements (railroads, steamships, and eventually airplanes) allowed companies to distribute products worldwide. Globalization and Expansion of Distribution Networks Franchising became popular, particularly in industries like fast food and retail, allowing businesses to expand into new markets with a consistent brand presence (e.g., McDonald's and Subway). Globalization and Expansion of Distribution Networks Supermarkets and hypermarkets emerged as dominant retail channels for consumer goods, leveraging economies of scale to offer a wide variety of products under one roof. Digital Revolution and the Rise of E-Commerce  The late 20th and early 21st centuries saw a massive shift due to the digital revolution. The internet transformed marketing channels, giving birth to e-commerce and direct-to-consumer (DTC) sales through online platforms. Digital Revolution and the Rise of E-Commerce  Companies like Amazon and Alibaba pioneered the global e-commerce model, where customers could buy almost anything online and have it delivered to their doorstep.  The rise of social media (Facebook, Instagram, TikTok) created new marketing channels by allowing brands to directly engage with customers, promote products, and even sell directly through social platforms. Digital Revolution and the Rise of E-Commerce  Digitalmarketing channels, including SEO (Search Engine Optimization), email marketing, influencer marketing, and paid online ads, became vital tools for businesses to reach and convert customers online. Omnichannel Marketing  The most recent development is the emergence of omnichannel marketing, where businesses integrate multiple channels (online, in-store, social media, mobile apps) to create a seamless customer experience.  Examples: Companies like Nike and Apple excel at combining their physical stores with e-commerce platforms and mobile apps to provide a unified brand experience. Emerging Technologies and Future Trends  New technologies like artificial intelligence (AI), augmented reality (AR), blockchain, and Internet of Things (IoT) are now influencing the future of marketing channels. Emerging Technologies and Future Trends  AI-driven personalization: Using AI, businesses can deliver hyper- personalized recommendations and offers based on user behavior across multiple Emerging Technologies and Future Trends  Voice Commerce: The use of smart assistants (like Amazon Alexa and Google Assistant) allows customers to make purchases using voice commands, which is an emerging marketing Emerging Technologies and Future Trends  AR/VR Experiences: Augmented and virtual reality experiences are transforming e-commerce by allowing customers to "try" products virtually before buying them. TOPICS FOR PRESENTATION  GROUP 1- CHANNEL MANAGEMENT  GROUP 2- DESIGN MARKETING CHANNELS  GROUP 3- SELETING CHANNEL PARTNERS  GROUP 4- EVALUATING CHANNEL MEMBER PERFORMANCE