Presentasi Marketing Channels 12 Oktober 2011 PH Versi 2007

Marketing Channel and Market Testing

#Peny Meliaty Hutabarat #Suci Defina Sari #Kutut Wijanarko

Marketing Channel

Marketing Channels-Structure & Functions

Segmentation For Marketing Channel Design

Market Testing

Marketing Channels-Structure & Functions

Segmentation For Marketing Channel Design

Marketing Channel

Marketing channels are the routes to market used to sell every product and service that consumers and business buyers

purchase everywhere in the world.

Marketing Channel

Important of Studying Marketing Channels

Gatekeeper

Important Asset of Marketing Strategy# Differentiator #Difficult to replicate

End-User Satisfaction # Overall brand image

Awareness of channel important is low# Opportunity for competitive advantage

Difficult to create and maintain channel#Difficult and costly to change #Right the first time

Marketing Channel

What is a Marketing Channels?

A marketing channel is a set of interdependent organizations involved in the process of making a product or service available for use or consumption.

Set of Interdependent Organizations.

A Process (usually over time)

Process with purpose

- “ to satisfy end-users”

The marketing channel is often viewed as a key strategic asset of a manufacturer

Marketing Channel

Why Do Marketing Channels Exist and Change?

Demand-Side Factors

Facilitation of Search Intermediary channels arise because buyers and sellers cannot find each other

Adjustment of Assortment Discrepancy Manufacturer = large quality of limited varietyConsumers = large variety in small quantities (customization & choice)1. Sorting out (packer : orange size and grade)

2. Accumulation (wholesaler : gather together supply)3. Allocation (wholesale distributor : breaking bulk)4. Assorting (complementary

Bottom Line : Meeting customer demands, driven by the consumer.

Marketing Channel

Two forces for channel development and and change

Channel Development & ChangeSupply-Side Factors

Routinization of transactions Electronic Data Interchange ; Continuous replenishment program (CRP)

Reduction in number of contacts Employing more and more intermediaries is subject to diminishing returns simply from the point of view of number and cost of contacts in the market

Bottom Line : mitigating risk, minimizing management costs, maximizing utility

Manufacturers

Wholesaler

Retailer

Marketing Channel

Manufacturers

Retailer

What is The Work of The Marketing Channel?

Producers Retailers

Consumers:Industrial

andHousehold

Wholesalers

Physical

Ownership

Promotion

Negotiation

Financing

Payment

Ordering

Risking

Physical

Ownership

Promotion

Negotiation

Financing

Payment

Ordering

Risking

Physical

Ownership

Promotion

Negotiation

Financing

Payment

Ordering

Risking

Marketing Channel

Marketing Flows in Channels

Marketing Flows

Processes flow through the channel

Done at different points in time by different channel members

Flow of information The eight universal marketing channel flows :

1. Physical possession

2. Ownership

3. Promotion

4. Negotiation

5. Financing

6. Risking

7. Ordering

8. Payment

Marketing Channel

Who Belongs To A Marketing Channel?

Manufacturers

Intermediaries (retailers, wholesalers)

End-users

Channel Members

“Channel Captain” :An organization that taks the keenest interest in the workings of this product or service and that act as a prime mover in establishing and maintaining channel links.

Marketing Channel

“Channel format as Combination of Channel MembersThe various channel participants can combine in many ways to create effective marketing channels. The range and number of channel members are affected by the nature of demand by end-users, and the captaincy of the channel can vary from situation to situation.

Channel Analysis Framework

Decisions about Efficient Channel Response :

#Channel Structure : What kind of intermediaries are in my channel? ;

Who are they? ; How many of them?

# Splitting the workloadWith what responsibilities?

# Degree of commitment:Distribution alliance?Vertical integration / ownership?

# Gap analysisWhat do i have to change?

CHANNEL DESIGN PROCESS :# Segmentation Recognize and Respond to target customers’ service output demands

CHANNEL IMPLEMENTATION PROCESS :

Channel Power:Identify sources for all channel members

Channel Conflict:Identify actual and potential source

Manage/ Defuse Conflict :Use power source strategically, subject to

legal constraints

Goal : Channel Coordination

Insight for specific channel institutions :Retailing, Wholesaling and Logistics, Franchising

Segmentation

• Splitting market into groups of end-users Similar within groups Different between groups

Based on demands for the outputs of the marketing channel Added value Service outputs

Example : Segments of book end-users

Marketing Channel

Channel Structure

Splitting the Workload

1. Types of channel members2. Identities of specific channel members3. Channel intensity : number of each type

• Assign channel flows to channel members Meet target segment’s service output demands Reliable Minimize total cost, while meeting service level

Marketing Channel

Degree of Commitment

Gap Analysis

Transactional relationships- Pursue individual goals- No guarantee of continued business

Alliances- Enduring connections throughout

companies- Pursue common goals

The difference between optimal and actual channels Demand side gaps

- Service output demands are not being met- Undersupplied- Oversupplied

Supply side gaps- At least one flow is costing too much- Lack of expertise- Waste

Closing gaps is difficult and costly

Vertical integration- Own channel members- Reasons

- Channel members do not exist- Company can handle flows as efficiently- Channel member is not sufficiently

committed

Marketing Channel

Channel Power

Channel Conflict

Ability to control other channel members Necessary to implement channel design May be used to optimize channel to benefit of all channel members May be used to achieve own ends without regard to other channel members

Actions of channel members prevent channel from achieving its goals

Goal conflict Domain conflict Perceptual conflict

Marketing Channel

Manage/ Difuse Conflict

Channel Coordination

Marketing Channel

Identify sources of conflict- Poor channel design- Poor performance

Take action- Exercise channel power

Result of- Channel designed to meet service output

demands of target end-user segments- Application of channel power to ensure smooth

implementation of the channel design Ongoing process