Success Strategies in Channel
Management
Outline
1
Main Topic Areas
• Introduction
• Building Channels
• Managing Channels
• Implementation
• Specific Topics
– Global Challenges
– Legal Issues
– Pricing
– Channels for Services
2
Preparing a Marketing
for Channels Plan (9)
Logistics and Supply
Chain Management (51)
Sec1.ppt
Sec4.ppt
Marketing
Channels (23)
Sec2.ppt
Channel Design
and
Implementation (40)
Sec3.ppt
Introduction
New and Different
Channel Forms and
Trends (62)
Sec6.ppt
3
Selection Criteria (77)
Channel
Implementation (67)
Sec9.ppt
Sec7.ppt
Building
Channels
Channel Structure and
Membership Issues (71)
Vertical Integration:
Owning the Channel (83)
Sec22.ppt
Sec9.ppt
4
Bargaining for
Influence with Channel
Members (116)
Partner Relationship
Management (89)
Sec10.ppt
Sec13.ppt
Managing
Channels
Key Account
Management in
Collaborative
Relationship Building
Channel Power:
Getting It, Using It,
Keeping It (120)
Sec14.ppt
(108)
Sec12.ppt
Managing Conflict to
Increase Channel
Coordination (138)
Sec16.ppt
5
Implementation
Performance
Measurement
(149)
Sec17.ppt
Making the Plan
Work Effectively
(154)
Sec18.ppt
Selection and
Termination
Policies 176
•Sec20.ppt
6
Global Challenges
and Opportunities
(130)
Legal Issues (161)
Sec15.ppt
•Sec19.ppt
Specific
Topics
Channels for
Services 59
Sec5.ppt
Pricing (180)
•Sec21.ppt
7
Success Strategies in Channel
Management
Power Point Presentations by
Sections
8
Establishing and
Implementing
The Value
Strategy
Strategic
Considerations
Sec1.ppt
Sec1-1.ppt
Factors in Deriving
Economic Value
Sec1-2.ppt
Preparing a Marketing Plan for Channels
Sec1.ppt
9
Delivering Value -The
Search for a
Sustainable
Competitive Advantage
A strategy that does not
last is not effective or
optimum.. marketing
channels can be viewed as
exchange facilitator – or
deliverers of value.
Specific
entrepreneurial
aspects of the
strategy formation
Delivering Value
For marketing
channels to
succeed in a
competitive
marketplace,
independent
marketing
organizations
must combine
their resources to
pursue common
goals.
Strategy and
Planning
Establishing and
Implementing The Value
Strategy
Sec1.ppt
Deliver
Value/Delivered Value
Focus on What
Markets Want
Marketing,
Exchange and the
Value Concept
Value Driven
MarketingUnderstand
the Value;
Create/Configure the
Value;
Communicate the
Value;
Deliver Value.
10
1. Competition and Cooperation
The basic assumption in
Strategy is competition.
Competitive behaviour sees
organisations taking an
adversarial role in all
exchange situations
4. Syncretic Market
Behaviour The attempt
to achieve a dynamic
balance between
positives to be found in
both competitive and cooperative strategies
2. Monopolistic/Oligopolistic
Market Behaviour
The problem with building a
defensive wall is that one loses
the benefits of competition –
improved performance.
3. Co-operative Market
Behaviour
Co-operative behaviour is
characterised by organisations
exhibiting behaviour that
focuses primarily on cooperation with market
supporters – (strategic
relationship building to leverage
collaborative efforts.
Competition
Sec1-1.ppt
11
Value and Resource Scarcity
Value and Market
Information
Cooperation
Preparing a Marketing Plan for
Channels
Factors in Deriving Economic
Value
Sec1-2.ppt
Information: The
Core of Transaction
Costs
Transaction-Specific Assets
Specific Human Assets
Brand Capital
Time Specificity
12
Marketing Channels
Creating Customer
Value via Channels of
Distribution\
Customer
Relationship
Management
Three types of
channel
relationships exist:
Supplier
Relationships.
Customer
Relationships.
Lateral
Relationships.
Components of
Customer Value
form,
place,
possession, and
time
SIFTing
Marketing Channels
Sec2.ppt
Marketing Channel
Membership
Marketing
Channels: Structure
and Functions
Demand-Side Factors
Facilitation of Search,
Adjustment of
Assortment
Discrepancy,
Routinisation of
Transactions
Reduction in Number
of Contacts.
What Is The Work Of
The Marketing
Channel?
13
Section 3 –Channel
Design and
Implementation
3.1 Channel Access
Formats
Sec3.1.ppt
Channel Design and
Implementation
Sec3.ppt
14
Channel Design
and
Implementation
Channel Design:
Segmentation
Channel Selection
Channel Access
Formats
Sec3.1.ppt
Channels Type
Options
Establish New
Channels or Refine
Existing Channels?
15
The Importance of
Logistics in Channels
Logistics and
Supply Chain
Management
Inventory
Management in
Marketing
Channels
Inventory Holding
Costs
Supply Chain
Management
Efficient Consumer
Response
Physical Efficiency
versus Market
Responsiveness
Reducing
Inventory
Pseudo Inventory
Reduction
Changes in
Merchandising
Real Inventory
Reduction
Category
Management
Fulfilment and
Transportation
Sec4-1.ppt
Critical Supply
Chain Elements
Documentation
Logistics and Supply
Chain Management
Sec4.ppt
16
Inventory Management
Inventory Holding Costs
Reducing Inventory
JIT
Inventory –
Demand
Uncertainty
Real Inventory
Reduction
Pseudo Inventory
Reduction
Inventory Management in Marketing
Channels
Sec4-1.ppt
17
Coverage versus
Assortment
Issues Regarding
Distribution Intensity
and Vertical Restraints
Why Downstream Channel
Members Dislike Intensive
Distribution
Brand Strategy:
Quality Positioning
and Premium Pricing
How Channel
Members Drop
Brands
The Nature of the Value
Offer Category
Degree of Category
Exclusivity
Channel Implementation
Distribution Intensity and Vertical
Restraints
7 - Struct and Membership.doc
18
Who Should Be In
The Channel?
Should Intermediaries
Be Used at All?
Channel Structure and
Membership Issues
What Types of
Intermediaries
Should Be Used?
8 - Selection Criteria.doc
The Impact Of Structural
Decisions On Channel
Coordination
A Single Channel or
Multiple Distribution?
Flows to Be
Performed,
Appropriate
Intermediary Choices
Which Specific
Intermediaries Should
Be Used?
How Many Channel
Members Should There
Be At A Given Level of
the Channel?
19
Distributor and Agent
Selection Criteria
Recruiting and
Screening New
Prospects
Recruiting as a
Continuous Process.
Business Policies that
Bond Your Channel to
You
Preparing a
Business Policy
Statement
Screening
Credit
Personality
Business and Operational
Criteria
Channel Candidate
Inducements
Final Selection
Criteria - SPEAR
Distributor and Agent
Selection Criteria
Sec9.ppt
20
The Benefits of Strategic
Partnerships in Channel
Strategy
Strategic Alliances:
Their Nature and the
Motives for Creating
Them
Do Alliances Outperform
Ordinary Channels?
Why Forge a Strategic
Distribution Alliance?
Positive Channel
Relationships
Principals That Drive
Improved Channel
Collaboration:
All partnering is based
on a few common
denominators:
Upstream and
Downstream Motives
Partner
Relationship
Management
Sec10.ppt
Things that cause bad
dealer relations
Objectives In Dealer
Relations
Complaints About Dealers
Guidelines that can
help in partnering with
customers and
suppliers
21
Motivating New
Channel Members
11.2 Motivational
Concepts and
Processes
Sec11.2.ppt
Motivating New Channel
Members
Sec11.ppt
22
Motivating New Channel
Members
Securing Recruits for the Long
Term
The Channel Relationship
Life Cycle
Motivational Concepts and
Processes
Sec11.2.ppt
How Do You Create
Trust in a Channel?
The Fundamental Role
of Economic
Satisfaction
What produces noneconomic satisfaction?
Improving Service to
Channel Partners
What inspires a
channel member's
confidence?
How the Other Side
Gauges Your
Commitment
Actions That Bind
Suppliers to
Distributors
23
Push Strategies
Here are a few ways to
give your new
relationship a positive
foundation.
Pull Strategies
Sales and Product
(Value Offer) Training
Guidelines for Great
Channel Partnerships
Motivating New Channel
Members
Motivational Concepts and
Processes
Sec11.2.ppt
24
Stages in KAM
Uncoupling-KAM
Key Account
Management
Key Account Quiz
Inter-relational causes of
uncoupling:
Breach of Trust
Cultural Mismatch
Quality Problems
Analysing The
Potential For
Partnership/Synergy
External Causes of
Uncoupling:
Changing market positions
Financial problems
Key Account
Management in
Collaborative
Relationship
Building
Sec12.ppt
25
Bargaining for
Influence with Channel
Members
Desired Coordination
Bargaining for
Influence with Channel
Members
Exclusive Dealing
Sec13.ppt
Dependence
Balancing
Saving Costs by
Limiting the Number of
Trading Partners
Stimulating the Benefits
of Selectivity While
Maintaining Intensive
Coverage
Producer-Specific
Investments by
Downstream Channel
Members
Trading Territory
Exclusivity for
Category Exclusivity
Reassurance
Using Selectivity to
Stabilize Fragile
Relationships
The Price of the
Concession
26
Channel Power
Power in Channel
Implementation
Channel Power: Getting It, Using
It, Keeping It
Power Defined
Sec14.ppt
Why Marketing
Channels Require
Power
Influence Strategies
How to Frame an
Influence Attempt
Power as the
Opposite of
Dependence
The Balance Of Power
Sources of Power
Measuring
Dependence
Imbalanced
Dependence
27
Reasons for
International Exchange
Relationships
Types of International
Exchange
Relationships
Multinational Exchange
Relationships
Global
Challenges
and
Opportunities
Sec15.ppt
Global Exchange
Relationships
Transnational Exchange
Relationships
Success and Failure
Factors
Global Partner
Selection Factors
Develop Flexible
Transaction
Structures
Selecting International
Exchange Partners
the Five Cs
Indirect Marketing
Channels
International Marketing
Channels and the
Environment
Sociocultural Factors
Technological Factors
28
Managing Conflict to
Increase Channel
Coordination
Managing
Conflict to
Increase
Channel
Coordination
Sec16.ppt
Forms of Channel
Conflict
Assessing the Degree
and Nature of Channel
Conflict
Measuring Conflict
Styles of Conflict
Resolution
Accommodation
Repeated Compromise
Competition
When Conflict Is
Desirable
When Is Conflict
Functional?
Collaboration
Major Sources of
Conflict
Conflict Resolution
Strategies
Competing Goals
Co-optation
Differing Perceptions of
Reality
Third-Party Mechanisms
Building Relational
Norms
Fuelling Conflict
Clashes Over Domains
Multiple Channels
Information Exchange
29
Performance
Measurement
Channel Member
Evaluation
A Framework for
Developing Measures
of Channel Member
Performance
Performance
Measurement
Sec17.ppt
Direct and Indirect
Measures
Financial Measures
30
Implementing,
Measuring and
Assessing the Value
Exchange Plan
Key Components of
the Plan
Implementing
the Plan
Structures for
Implementation
Effective
communication
Controlling the Marketing
Channels Program
Financial Measures
Implementation
- Making the
Plan Work
Effectively
Non-Financial Measures
Sec18.ppt
Measuring and Assessing
Performance
Customer Service
Measurement
Dealing with Failure
Strategic Tunnel Vision
Perfectionism
Success and Commitment
31
Legal Constraints on
Marketing Channel
Policies
Market Coverage
Policies
Pricing Policies
Discounts
Legal Issues
Sec19.ppt
Product Line Policies
Promotional
Allowances and
Services
Product Policies
Exclusive Dealing
32
Selection and
Termination Policies
International Variations
Selection and
Termination Policies
Terminating Agents and
Distributors
Sec21.ppt
Termination as Strategy
Common Ground
Rules
Confusion Over Terms
33
Pricing Policy
and Methods
Price Cutting
Buyer Evaluation
Pricing in Channels
Sec21.ppt
Eight Stages In
Establishing
Prices
Price and Value
Segmented Pricing
Discounts and
Allowances
Common Pricing and
Methods
Competition-Based Methods
Profit-Based Methods
Competition Oriented Pricing
34
Vertical Integration: Owning
the Channel
Make or Buy: A
Critical Determinant of
Company
Competencies
Important forms of
company-specific
capabilities
Vertical
Integration:
Owning the
Channel
Sec22.ppt
Degrees of Vertical
Integration
Deciding When to
Vertically Integrate
Forward
Outsourcing as the
Starting Point
Vertical Integration
Forward When
Competition Is Low
Six Reasons to
Outsource
Distribution
35
Channels for
Services
Direct Delivery of
Value
Delivery of Value via
Intermediaries
Independent
Service Channels
Innovations in Methods of
Distributing Services
Channels for Services
Sec6.ppt
36