Global Channel Management - Design

Transcript

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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
22. Distribution Systems
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.
31. Distribution Systems Channel Levels INDIRECT Consumer market Consumer Manufacturer Manufacturer Manufacturer Manufacturer Consumer Consumer Consumer Retailer Retailer Retailer Wholesaler Wholesaler Agent
32. Distribution Systems Channel Levels INDIRECT Business market Business Manufacturer Manufacturer Manufacturer Manufacturer Business Business Business Wholesaler Wholesaler Agent Agent
33. Distribution Systems Channel Levels INDIRECT Service market Bus/Con Service Service Bus/Con Agent
34. Distribution Systems Channel Advantage
35. Distribution Systems Channel Levels INDIRECT In reality
36. Distribution Systems Channel Levels Pharma Industry Distribution of goods Communication flow
37. Distribution Systems Channel Levels Pharma Industry Distribution of goods Communication flow Direct Indirect multi- channel Pharmadceutical Companies Physicians Patients
38. Distribution Systems Channel Levels Pharma Industry Distribution of goods Communication flow Direct Indirect multi- channel Pharmadceutical Companies Physicians Patients over the counter
39. Distribution Systems Channel Levels Pharma Industry Distribution of goods Communication flow Direct Indirect multi- channel Pharmadceutical Companies Physicians Patients Intermediaries Pharmacies Hospitals Care Institues Pharmacies Hospitals Care Institues Wholesaler over the counter
40. Distribution Systems Channel Levels Pharma Industry Distribution of goods Communication flow Direct Indirect multi- channel Pharmadceutical Companies 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. Wholesaler Retailer 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
57. Distribution Systems Channel Levels INDIRECT International market Consumer Manufacturer Manufacturer Manufacturer Manufacturer Consumer Consumer Consumer Retailer Retailer Retailer Wholesaler Wholesaler Agent Border
58. Distribution Systems Channel Levels INDIRECT International market Consumer Manufacturer Manufacturer Manufacturer Manufacturer Consumer Consumer Consumer Retailer Retailer Retailer Wholesaler Wholesaler Agent Border Importer Exporter
59. Vertical Marketing System Producers, wholesalers and retailers acting as a unified system
60. Vertical Marketing System
61. Vertical Marketing System
62. Vertical Marketing System
63. Vertical Marketing System The own the product
64. Vertical Marketing System The own/make the product The own the retailer
65. Vertical Marketing System
66. Vertical Marketing System c
67. Vertical Marketing System c
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.
81. Horizontal Marketing System Vertical Marketing System
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
87. Channel Conflict Horizontal Conflict
88. Channel Conflict Horizontal Conflict Vertical Conflict
89. Channel Alternatives
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)
93. Channel Decisions Product Life Cycle
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.
106. Channel Design Analyzing customer needs Setting Channel Objectives Identifying channel alternatives Evaluation
107. Channel Design Analyzing customer needs
108. Channel Design Analyzing customer needs Lot Size Variety Place Utility Waiting Time
109. Channel Design Analyzing customer needs
110. Channel Design Analyzing customer needs Setting Channel Objectives
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
116. Channel Design Analyzing customer needs Setting Channel Objectives Identifying channel alternatives Types of intermediaries.
117. Channel Design Analyzing customer needs Setting Channel Objectives Identifying channel alternatives Types of intermediaries. N Number of intermediaries
118. Channel Design Analyzing customer needs Setting Channel Objectives Identifying channel alternatives Types of intermediaries. N Number of intermediaries Responsibility of each channel member
119. Channel Design Analyzing customer needs Setting Channel Objectives Identifying channel alternatives Evaluation
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 - punishment Reward - incentives Coercion - punishment Referent - strong image cCoercion - punishment Legitimate - contract cCoercion - punishment Expert - knowledge cCoercion - punishment Support - extra benefits cCoercion - punishment Competition
125. Channel Design MOTIVATION
126. Channel Design Analyzing customer needs Setting Channel Objectives Identifying channel alternatives Evaluation
127. Channel Design Analyzing customer needs Setting Channel Objectives Identifying channel alternatives Evaluation Cost of operation
128. Channel Design Analyzing customer needs Setting Channel Objectives Identifying channel alternatives Evaluation Cost of operation N Ability to manage & control
129. Channel Design Analyzing customer needs Setting Channel Objectives Identifying channel alternatives Evaluation Cost of operation N Ability to manage & control Adaptability
130. Channel Design Analyzing customer needs Setting Channel Objectives Identifying channel alternatives Evaluation Cost of operation N Ability to manage & control Adaptability Range & volume to be handled
131. selecting channel members managing channel members motivating channel members evaluating channel members Channel Design
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
134. 4C’s Competition Consumer Channel Collaboration
135. Let’s go to work South Africa Malaysia Australia Argentina South Korea Mexico Peru
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!
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