Upload
tharaka-dias
View
571
Download
0
Embed Size (px)
DESCRIPTION
Marketing Channels and managing retails by Tharaka DIas
Citation preview
THARAKA DIASMBA(USA), BBA(USA), Dip in Mgt, ACIM(UK),
FAEA(Dip in AEA-UK), FinstSMM(UK), CPM(Asia),
MSLIM
A marketing channel system is the
particular set of interdependent
organizations, involved in the process of
making a product or service available for making a product or service available for
use or consumption.
2AOT - www.tharakadias.com
3AOT - www.tharakadias.com
� A push strategy uses the manufacturer’s sales force, trade promotion money, and other means to induce intermediaries to carry, promote, and sell the product to carry, promote, and sell the product to end users
� A pull strategy uses advertising, promotion, and other forms of communication to persuade consumers to demand the product from intermediaries
4AOT - www.tharakadias.com
5AOT - www.tharakadias.com
� Ability to order a product online and pick it up
at a convenient retail location
� Ability to return an online-ordered product to
a nearby storea nearby store
� Right to receive discounts based on total
online and offline purchases
6AOT - www.tharakadias.com
� Gather information
� Develop and disseminate persuasive
communications
Reach agreements on price and terms� Reach agreements on price and terms
� Acquire funds to finance inventories
� Assume risks
� Provide for storage
� Provide for buyers’ payment of their bills
� Oversee actual transfer of ownership
7AOT - www.tharakadias.com
8AOT - www.tharakadias.com
9AOT - www.tharakadias.com
10AOT - www.tharakadias.com
11AOT - www.tharakadias.com
12AOT - www.tharakadias.com
� Analyze customer needs
� Establish channel objectives
� Identify major channel alternatives
Evaluate major channel alternatives� Evaluate major channel alternatives
13AOT - www.tharakadias.com
Lot size
Waiting and delivery time
Spatial convenienceSpatial convenience
Product variety
Service backup
14AOT - www.tharakadias.com
� Types of intermediaries
� Number of intermediaries
� Terms and responsibilities
15AOT - www.tharakadias.com
� Price policy
� Condition of sale
� Distributors’ territorial rightsDistributors’ territorial rights
� Mutual services and responsibilities
16AOT - www.tharakadias.com
17AOT - www.tharakadias.com
� Selecting channel members
� Training channel members
� Motivating channel members� Motivating channel members
� Evaluating channel members
� Modifying channel members
18AOT - www.tharakadias.com
Coercive
Reward
LegitimateLegitimate
Expert
Referent
AOT - www.tharakadias.com
20AOT - www.tharakadias.com
� What types of conflict arise in channels?
� What causes conflict?
� What can marketers do to resolve it?
21AOT - www.tharakadias.com
� Goal incompatibility
� Unclear roles and rights
� Differences in perception
Intermediaries’ dependence on manufacturer� Intermediaries’ dependence on manufacturer
22AOT - www.tharakadias.com
Pure-click
Brick-and-click
23AOT - www.tharakadias.com
24AOT - www.tharakadias.com
Retailing encompasses the business activities
involved in selling goods and services to
consumers for their personal, family, or consumers for their personal, family, or
household use. It includes every sale to the
final consumer.
25AOT - www.tharakadias.com
�How can we best serve our customers while
earning a fair profit?
�How can we stand out in a highly competitive
environment where consumers have too environment where consumers have too
many choices?
�How can we grow our business, while
retaining a core of loyal customers?
26AOT - www.tharakadias.com
Retailers can best address these questions by
fully understanding and applying the basic
principles of retailing, as well as the elements
in a well-structured, systematic, and focused in a well-structured, systematic, and focused
retail strategy.
27AOT - www.tharakadias.com
28AOT - www.tharakadias.com
�Be a people person
�Be flexible
�Be decisive
Have analytical skills�Have analytical skills
�Have stamina
29AOT - www.tharakadias.com
Manufacturer
Retailer
WholesalerFinal
Consumer
30AOT - www.tharakadias.com
31AOT - www.tharakadias.com
�A retailer sells to consumers through multiple
retail formats
�Web sites
�Physical stores
32AOT - www.tharakadias.com
33AOT - www.tharakadias.com
� Disagreements may occur:
�control over channel
�profit allocation
�number of competing retailers
�product displays
�promotional support
�payment terms
�operating flexibility
34AOT - www.tharakadias.com
� Exclusive: suppliers make agreements with
one or few retailers that designate the latter
as the only ones in a specified geographic
area to carry certain brands or productsarea to carry certain brands or products
� Intensive: suppliers sell through as many
retailers as possible
� Selective: suppliers sell through a moderate
number of retailers
35AOT - www.tharakadias.com
Small
Average
Sale
Impulse
Purchase
Retailer’s
Strategy
Popularity
of
Stores
36AOT - www.tharakadias.com
�An overall plan for guiding a retail firm
�Influences the firm’s business activities�Influences the firm’s business activities
�Influences firm’s response to market
forces
37AOT - www.tharakadias.com
Customer Orientation
Coordinated Effort
Value driven
Goal Orientation
Retailing
Concept
Retail
Strategy
38AOT - www.tharakadias.com
39AOT - www.tharakadias.com
� Activities undertaken by a retailer in
conjunction with the basic goods and
services it sells.
Store hours�Store hours
�Parking
�Shopper-friendliness
�Credit acceptance
�Salespeople
40AOT - www.tharakadias.com
� Seek to establish and maintain long-term
bonds with customers, rather than act as if
each sales transaction is a completely new
encounterencounter
� Concentrate on the total retail experience
� Monitor satisfaction
� Stay in touch with customers
41AOT - www.tharakadias.com
� Use a win-win approach
� It is harder to get new customers than to keep
existing ones happy
� Develop a customer database� Develop a customer database
� Ongoing customer contact is improved with
information on people’s attributes and shopping
behavior
42AOT - www.tharakadias.com
Thank you
Thank you
43AOT - www.tharakadias.com