Success Strategies in Channel Management

1
Success Strategies in Channel Management

• Outline

2
Main Topic Areas

• Introduction
• Building Channels
• Managing Channels
• Implementation
• Specific Topics
• Global Challenges
• Legal Issues
• Pricing
• Channels for Services

3
Preparing a Marketing for Channels Plan
(9) Sec1.ppt
Logistics and Supply Chain Management
(51) Sec4.ppt
Marketing Channels (23) Sec2.ppt
Introduction
Channel Design and Implementation (40) Sec3.ppt
New and Different Channel Forms and Trends
(62) Sec6.ppt
4
Selection Criteria (77) Sec9.ppt
Channel Implementation (67) Sec7.ppt
Building Channels
Vertical Integration Owning the Channel
(83) Sec22.ppt
Channel Structure and Membership Issues
(71) Sec9.ppt
5
Bargaining for Influence with Channel Members
(116) Sec13.ppt
Partner Relationship Management (89) Sec10.ppt
Managing Channels
Channel Power Getting It, Using It, Keeping It
(120) Sec14.ppt
Key Account Management in Collaborative
Relationship Building (108) Sec12.ppt
Managing Conflict to Increase Channel
Coordination (138) Sec16.ppt
6
Implementation
Performance Measurement (149) Sec17.ppt
Making the Plan Work Effectively (154) Sec18.ppt

• Selection and Termination Policies 176
• Sec20.ppt

7
Global Challenges and Opportunities
(130) Sec15.ppt

• Legal Issues (161)
• Sec19.ppt

Specific Topics
Channels for Services 59 Sec5.ppt

• Pricing (180)
• Sec21.ppt

8
Success Strategies in Channel Management

• Power Point Presentations by Sections

9
Establishing and Implementing The Value
Strategy Sec1.ppt
Strategic Considerations Sec1-1.ppt
Factors in Deriving Economic Value Sec1-2.ppt
Preparing a Marketing Plan for Channels Sec1.ppt
10
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.
Delivering Value For marketing channels to
succeed in a competitive marketplace, independent
marketing organizations must combine their
resources to pursue common goals.
Focus on What Markets Want
Marketing, Exchange and the Value Concept
Specific entrepreneurial aspects of the strategy
formation

• Value Driven MarketingUnderstand the Value
• Create/Configure the Value
• Communicate the Value
• Deliver Value.

Strategy and Planning
Deliver Value/Delivered Value
Establishing and Implementing The Value Strategy
Sec1.ppt
11
2. Monopolistic/Oligopolistic Market
Behaviour The problem with building a defensive
wall is that one loses the benefits of
competition improved performance.
1. Competition and Co-operation The basic
assumption in Strategy is competition.
Competitive behaviour sees organisations taking
an adversarial role in all exchange situations
3. Co-operative Market Behaviour Co-operative
behaviour is characterised by organisations
exhibiting behaviour that focuses primarily on
co-operation with market supporters (strategic
relationship building to leverage collaborative
efforts.
4. Syncretic Market Behaviour The attempt to
achieve a dynamic balance between positives to be
found in both competitive and co-operative
strategies
Competition Sec1-1.ppt
12
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
13
Components of Customer Value form, place,
possession, and time
Marketing Channels Creating Customer Value via
Channels of Distribution\
Marketing Channels Structure and Functions
Customer Relationship Management Three types of
channel relationships existSupplier
Relationships. Customer Relationships. Lateral
Relationships.
Demand-Side Factors Facilitation of Search,
Adjustment of Assortment Discrepancy,
Routinisation of Transactions Reduction in
Number of Contacts.
SIFTing
Marketing Channels Sec2.ppt
What Is The Work Of The Marketing Channel?
Marketing Channel Membership
14
Section 3 Channel Design and Implementation
3.1 Channel Access Formats Sec3.1.ppt
Channel Design and Implementation Sec3.ppt
15
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?
16
The Importance of Logistics in Channels
Inventory Management in Marketing
Channels Inventory Holding Costs Reducing
Inventory Pseudo Inventory Reduction Real
Inventory Reduction Sec4-1.ppt
Logistics and Supply Chain Management
Supply Chain Management Efficient Consumer
Response Changes in Merchandising Category
Management
Physical Efficiency versus Market Responsiveness
Fulfilment and Transportation
Critical Supply Chain Elements
Documentation
Logistics and Supply Chain Management Sec4.ppt
17
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
18
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
19
Should Intermediaries Be Used at All?
Who Should Be In The Channel?
What Types of Intermediaries Should Be Used?
Channel Structure and Membership Issues 8 -
Selection Criteria.doc
The Impact Of Structural Decisions On Channel
Coordination
Flows to Be Performed, Appropriate Intermediary
Choices
A Single Channel or Multiple Distribution?
Which Specific Intermediaries Should Be Used?
How Many Channel Members Should There Be At A
Given Level of the Channel?
20
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
Distributor and Agent Selection Criteria Sec9.ppt
Final Selection Criteria - SPEAR
21
The Benefits of Strategic Partnerships in Channel
Strategy
Strategic Alliances Their Nature and the Motives
for Creating Them
Do Alliances Outperform Ordinary Channels?
Principals That Drive Improved Channel
Collaboration
Positive Channel Relationships
All partnering is based on a few common
denominators
Why Forge a Strategic Distribution Alliance?
Upstream and Downstream Motives
Guidelines that can help in partnering with
customers and suppliers
Things that cause bad dealer relations Objectives
In Dealer Relations Complaints About Dealers
Partner Relationship Management Sec10.ppt
22
Motivating New Channel Members
11.2 Motivational Concepts and Processes Sec11.2.p
pt
Motivating New Channel Members Sec11.ppt
23
Motivating New Channel Members
Securing Recruits for the Long Term
The Channel Relationship Life Cycle
Motivational Concepts and Processes Sec11.2.ppt
Improving Service to Channel Partners
How Do You Create Trust in a Channel?
What inspires a channel member's confidence?
How the Other Side Gauges Your Commitment
The Fundamental Role of Economic
Satisfaction What produces non-economic
satisfaction?
Actions That Bind Suppliers to Distributors
24
Here are a few ways to give your new relationship
a positive foundation.
Push Strategies
Pull Strategies
Sales and Product (Value Offer) Training
Motivating New Channel Members Motivational
Concepts and Processes Sec11.2.ppt
Guidelines for Great Channel Partnerships
25
Stages in KAM
Uncoupling-KAM
Key Account Management
Inter-relational causes of uncoupling Breach of
Trust Cultural Mismatch Quality Problems
Key Account Quiz
Analysing The Potential For Partnership/Synergy
Key Account Management in Collaborative
Relationship Building Sec12.ppt
External Causes of Uncoupling Changing market
positions Financial problems
26
Bargaining for Influence with Channel Members
Desired Coordination
Producer-Specific Investments by Downstream
Channel Members
Bargaining for Influence with Channel
Members Sec13.ppt
Exclusive Dealing Saving Costs by Limiting the
Number of Trading Partners Stimulating the
Benefits of Selectivity While Maintaining
Intensive Coverage
Dependence Balancing Trading Territory
Exclusivity for Category Exclusivity
Reassurance Using Selectivity to Stabilize
Fragile Relationships The Price of the Concession
27
Channel Power
Power in Channel Implementation
Channel Power Getting It, Using It, Keeping
It Sec14.ppt
Power Defined
Why Marketing Channels Require Power
Influence Strategies How to Frame an Influence
Attempt
Power as the Opposite of Dependence Measuring
Dependence
The Balance Of Power Imbalanced Dependence
Sources of Power
28
Global Challenges and Opportunities Sec15.ppt
Types of International Exchange
Relationships Multinational Exchange
Relationships Global Exchange Relationships Transn
ational Exchange Relationships
Reasons for International Exchange Relationships
Success and Failure Factors
Indirect Marketing Channels
Global Partner Selection Factors
Develop Flexible Transaction Structures
International Marketing Channels and the
Environment Sociocultural Factors Technological
Factors
Selecting International Exchange Partners the
Five Cs
29
Forms of Channel Conflict
Managing Conflict to Increase Channel Coordination
Assessing the Degree and Nature of Channel
Conflict Measuring Conflict
Managing Conflict to Increase Channel
Coordination Sec16.ppt
Styles of Conflict Resolution Accommodation Repeat
ed Compromise Competition Collaboration
When Conflict Is Desirable When Is Conflict
Functional?
Major Sources of Conflict Competing
Goals Differing Perceptions of Reality Clashes
Over Domains Multiple Channels
Conflict Resolution Strategies Co-optation Third-P
arty Mechanisms Building Relational
Norms Information Exchange
Fuelling Conflict
30
Performance Measurement
Channel Member Evaluation
A Framework for Developing Measures of Channel
Member Performance
Performance Measurement Sec17.ppt
Direct and Indirect Measures Financial Measures
31
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 Measuring and Assessing
Performance Financial Measures Non-Financial
Measures Customer Service Measurement
Implementation - Making the Plan Work
Effectively Sec18.ppt
Dealing with Failure
Strategic Tunnel Vision Perfectionism
Success and Commitment
32
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
33
Selection and Termination Policies
International Variations
Terminating Agents and Distributors
Selection and Termination Policies Sec21.ppt
Termination as Strategy
Common Ground Rules
Confusion Over Terms
34
Pricing Policy and Methods
Price Cutting
Buyer Evaluation
Pricing in Channels Sec21.ppt
Eight Stages In Establishing Prices
Price and Value
Segmented Pricing
Common Pricing and Methods Competition-Based
Methods Profit-Based Methods Competition Oriented
Pricing
Discounts and Allowances
35
Vertical Integration Owning the Channel
Make or Buy A Critical Determinant of Company
Competencies
Degrees of Vertical Integration
Important forms of company-specific capabilities
Deciding When to Vertically Integrate Forward
Vertical Integration Owning the Channel
Sec22.ppt
Outsourcing as the Starting Point Six Reasons to
Outsource Distribution
Vertical Integration Forward When Competition Is
Low
36
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