1. CHANNEL POWER An aid for org. success…. PRESENTED BY:- RAJAT CHOUDHARY FAIZAN SHAKIR SUHAIL SULTAN ROHITH MANDUVA KIMI GUGLANI GAUTHAM VEMULA
2. ABOUT THE CONCEPT… What is a Channel? A set of interdependent organizations or indivisduals(intermediaries) involved in the process of making a product available for consumption or use by the consumer or business buyer. Channel power The strength of channel members do lead to create channel power. Why Marketing Intermediaries? They offer efficiency in making products available to target markets through: Contacts Experience Specialization Scale of operation
3. Channel Functions Contacts with prospective buyers Matching buyers and sellers Negotiation Physical distribution Marketing research, information Customer service Promotion Financing Pricing Buying Training
4. Channel objective Ensure the availability of product at all time in the market. Increasing the sharing of information & technology across the participants Try to enhance the public image of the company Provide the best services to consumer
5. Channel Strategy The broad principles by which a firm expects to achieve its distribution objectives for satisfying its customers
8. Analysis of Existing ChannelWhat benefits are sought? What activities are required? Strategic Issues / Dimensions Economics Control Adaptability
9. Design Alternatives Design Alternatives - Strategic Issues 1. Number of Channel Levels: Direct vs. Indirect 2. Number of Members (at a level): Exclusive vs. Selective vs. Intensive 3. Allocating Channel Functions / Responsibilities 4. Type of Marketing System
10. Marketing Channel Strategy is Growing in Importance. Why?Five Reasons (1) Search for Sustainable Competitive Advantage (2) Growing Power of Retailers in Marketing Channels (3) The Need to Reduce Distribution Costs (4) The Increased Role and Power of Technology (5) The New Stress on Growth
11. EX. OF CHANNELS strategy INDIRECT CHANNEL DIRECT CHANNEL MANUFACTURER MANUFACTURER WHOLESELLER CONSUMER RETAILER CONSUMER
12. Building Relationships with Channel Members Find Out the Needs and Problems of Channel Members -informal information system (“grapevine”) -research studies of channel members -research studies by outside parties -marketing channel audit -distributor advisory councils
13. Offer Support to Channel Members that is Consistent with Their Needs and Helps Solve their Problems -cooperative arrangements -partnerships and strategic alliances -distribution programming Provide Leadership to Motivate Channel Members -use power effectively -recognize causes of conflict -resolve conflicts
14. Classic Marketing Channel Strategies Still Relevant Today Dual Distribution Exclusive Dealing Full-Line Forcing Price Differentiation Price Maintenance Refusal to Deal Resale Restrictions Tying Agreements
15. How to maintain strong relation? (1) Recognition of interdependence of channel members (2) Close cooperation between channel members (3) Careful specification of roles, rights, and responsibilities in the relationship (4) Coordinated effort focused on common goals (5) Good communications and trust between channel members
16. Bases of Power in the Marketing Channel Reward Power Coercive Power Legitimate Power Referent Power Expert Power Effective Channel Management Depends on How Well These Power Bases are Combined and Used
17. Causes of Marketing Channel Conflict Role Incongruities Resource Scarcities Perceptual Divergencies Expectational Differences Decision Domain Disagreements Goal Incompatabilities Communication Difficulties
20. A sustainable competitive advantage is becoming more difficult to attain through: Product Strategy- rapid technology transfer enables competitors to quickly produce similar products Pricing Strategy- global economy allows competitors to find low cost production to match prices Promotion Strategy- high cost, clutter, and short life promotional campaigns limit competitive advantage
