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2 Marketing (Subject) / ACTIONS- Place (Lesson)

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• -13 Marketing Channel The set of independent organisations involved in the process of making a product available for consumption. Supplier and Distributor goals rarelt overlap completely  Distribution systems are riddled with conflic and inequalities
• -13.2 Channel Length Supplier: Direct  - Direct Sales Face-to-Face Direct Marketing, Telemarketing, Mass Media  - Specialized retail store Wholly owned -> Customer Franchise -> Customer - Internet -> Customer Indirect -Retailer -> Customer -Wholesaler -> Retailer -> Customer - Distributor -> Wholesaler -> Retailer -> Customer
• -13 Go-to-market Strategy Channel Design Strategy Direct vs. indirect Length (How far awat from consumer) Distribution Intensity (Density) Channel Costs & Margins Channel Management Contracts & Policies Coordination & Incentives Performance Assessment Conflict Management Evolution Over Time
• -13 Importance of Channels A marketing channel is more than just a conduit for product; it is also a means of adding value to the product distributed through it It can be viewed as a “production line” that produces not the product itself but the ancillary services that define how the product is sold These value-added services created by channel members and consumed by end-users along with the product purchased are service outputs or channel functions or distribution tasks. Classic Channel Functions: Assortment & Variety Spatial Convenience Bulk Breaking Waiting & Delivery Time  Classes of Channel Functions: Demand generation Demand fulfilment After sales service Information / market feedback  The question is not whether various channel functions need to be performed. The question is WHO will perform them.             
• 13.2- Direct vs. Indirect 1- Classify PLC Introductory Phase: High Information needs -> Direct Decline: Low Information needs                    -> Indirect Combined: Hybrid Channel structures emerge / separate production from info flow Indirect when High Logistic need - Intermediaries play a major role in transferring products to consumers + Logistics-related service outputs tend to improve as intermediaries hold inventory to facilitate end user access to goods or services + Low out-of-pocket marketing and sales expenses - Net price lower because intermediaries capture % of the end-user price  - Infomation tends to deteriorate when passed through the hands of intermediaries.  Direct when High Infor need- The manufacturer manages most contact with consumers + Able to capture most, if not all, of the end-user price - Higher cost because the firm is responsible for selling, distribution, and payment
• 13.2- Distribution Intensity Classify Product Convenience goods: Purchased frequently, immediately, with minimum of effort Shopping goods: Purchases are based on a comparison of quality, price, style, etc. Specialty goods: have unique characteristics or brand identification for which a sufficient number of buyers are willing to make a special purchase effort
• -13.2 The First Commandment of Going to Market The First Commandment of Going to Market states that you much start with the customer The customer must be the focus of all your go-to-market efforts the primary source of information used to make each and every go-to-market decision 
• -13.2 Channel Design Strategy Distribution Objective Segments / Customer: You much start with the customer How do different segments value different channel functions? How will technology, socio-cultural forces, and global competitive dynamics affect the way marketing functions are performed?  3. Channel Design- Mapping Tasks for each Segment What tasks need to be performed? What are the best options for doing them? Brand Awareness Gain attention as a new Brand: Promotions, Coupons, Flyer, Catalogues, Sponsoing Events, Sporting events Position company as high-quality supplier: Parnerships with other brands? Specialists? POS Tasks Demonstrate Product: Educate and show product (in action), Touch, FeelCommunicate Prices Take orders and Delivery: Tracking Status? Rapid Delivery: Where to order, how to ship, seasonality Post-Purchase Manage warranty Manage returns Manage repairs Cross-Sell accessoiries, Up-Sell   4. Overall Decisions based on Tasks Direct vs. Indriect - direct often costly Channel Length - how many intermediaries? Distribution intensity - selective vs. exclusive; coverage of target market Channel costs & margins -profit vs. penetration/growth, incentives  

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