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By Wan Zhi (Wan)
Ateneo Graduate School of Business
May 10, 2013
Concept 1:Channel-Design Decisions
Concept 2:Channel-Management Decisions
Concept 3:Channel Integration and System
Concept 4: Conflict, Cooperation, and
Competition
Concept 5:E-Commerce Marketing Practices
Concept 6:M-Commerce Marketing Practices
Evaluating major channel alternatives
Identifying major channel alternatives
Establishing objectives and constraints
Analyzing customer needs and wants
Example: How does Chinese brand Skyworth design their
channels when enter the Philippines market?
Channel
Design
Decision
Major Channel
Alternatives:
SM, Abenson,
Anson’s,
Imperials…
Needs and
Wants: those
practical and not
concern with
brand
Objectives and
Constraints: fast
growth and control
financial loss
Evaluate Major
Channel
Alternatives:
SM, ESLA, Royal
Star are good
alternatives
 Selecting channel members
 Training and motivate channel members
 Evaluating channel members
 Modifying channel design and arrangements
 Channel modification decisions
 Global channel considerations
Motivating and Balancing are
the most important!
Cash transaction
dealer: highlight cash
price to attractive
customer
Self-financing
transaction dealer:
highlight the down
payment or monthly
installment payment
Product
line
Product
line
Vertical marketing
systems
Horizontal
marketing systems
Integrating
multichannel
marketing systems
Skyworth
Retailers
Customers
Skyworth
Wholesalers
Retailers
Customers
City and Town
as Metro
Manila
Faraway
Countryside
as Visayas
and
Mindanao
Area
Wholesalers :capital platform and logistics
platform for faraway countryside.
SM
Appliance
Cash Cash
Pinoy,
LAZADA
Benonde
dealers
Channel conflicts
always happen
 SM: biggest dealer, offer exclusive models
with volume requirement;
 Other dealer: offer common models but
control the suggested retail price;
 Online sales: introduce another sister brand
COOCAA.
 USA: 2012 US US eCommerce and Online Retail sales
projected to reach $226 billion
 China: 2012 China eCommerce and Online Retail sales
projected to reach $100 billion
• those that have launched a
website without any previous
existence as a firm.
Pure-Click companies
• those existing companies that
have added an online site for e-
commerce.
Bricks-and-Clicks
companies
 Skyworth e-commerce:
Skyworth
e-
commerce
Special online
store in B2B
website
Corporate online
website
:www.coocaa.com
Sale to online
B2C retailers
Strategic dealers
National chain
stores
SM Appliance
Abenson
Imperial
Contribute 70%
sales revenue
Profit base
contributor
Self-financing
dealers
ESLA
Willy&Sons
Royal Star
Contribute 80%
profit
Other traditonal
dealers
Binonde
dealers,
Visayas and
Mindanao
dealers
Both play
limited role in
revenue and
profit
 Price management: adopt the same SRP
nationwide
 Product management: offer exclusive models
to strategic dealer while also protect those
profit contributors
 Account receivable management: use PPT to
motivate early payment.
 For e-commerce use another sister brand to
differenciate from other dealers.
 Skyworth cooperate with Cash cash pinoy and
Lazada to implement online sales.
 Skyworth take another sister brand COOCAA
to specialize online sales.
Concept 1:Channel-Design Decisions
Concept 2:Channel-Management Decisions
Concept 3:Channel Integration and System
Concept 4: Conflict, Cooperation, and
Competition
Concept 5:E-Commerce Marketing Practices
Concept 6:M-Commerce Marketing Practices
 If every channel push you, you will definitely win.
 To stand higher, standing on the shoulders of giants’

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Six concepts about kotler’s chapter 15

  • 1. By Wan Zhi (Wan) Ateneo Graduate School of Business May 10, 2013
  • 2. Concept 1:Channel-Design Decisions Concept 2:Channel-Management Decisions Concept 3:Channel Integration and System Concept 4: Conflict, Cooperation, and Competition Concept 5:E-Commerce Marketing Practices Concept 6:M-Commerce Marketing Practices
  • 3. Evaluating major channel alternatives Identifying major channel alternatives Establishing objectives and constraints Analyzing customer needs and wants
  • 4. Example: How does Chinese brand Skyworth design their channels when enter the Philippines market? Channel Design Decision Major Channel Alternatives: SM, Abenson, Anson’s, Imperials… Needs and Wants: those practical and not concern with brand Objectives and Constraints: fast growth and control financial loss Evaluate Major Channel Alternatives: SM, ESLA, Royal Star are good alternatives
  • 5.  Selecting channel members  Training and motivate channel members  Evaluating channel members  Modifying channel design and arrangements  Channel modification decisions  Global channel considerations Motivating and Balancing are the most important!
  • 6. Cash transaction dealer: highlight cash price to attractive customer Self-financing transaction dealer: highlight the down payment or monthly installment payment Product line Product line
  • 8. Skyworth Retailers Customers Skyworth Wholesalers Retailers Customers City and Town as Metro Manila Faraway Countryside as Visayas and Mindanao Area Wholesalers :capital platform and logistics platform for faraway countryside.
  • 10.  SM: biggest dealer, offer exclusive models with volume requirement;  Other dealer: offer common models but control the suggested retail price;  Online sales: introduce another sister brand COOCAA.
  • 11.  USA: 2012 US US eCommerce and Online Retail sales projected to reach $226 billion  China: 2012 China eCommerce and Online Retail sales projected to reach $100 billion • those that have launched a website without any previous existence as a firm. Pure-Click companies • those existing companies that have added an online site for e- commerce. Bricks-and-Clicks companies
  • 12.  Skyworth e-commerce: Skyworth e- commerce Special online store in B2B website Corporate online website :www.coocaa.com Sale to online B2C retailers
  • 13.
  • 14. Strategic dealers National chain stores SM Appliance Abenson Imperial Contribute 70% sales revenue Profit base contributor Self-financing dealers ESLA Willy&Sons Royal Star Contribute 80% profit Other traditonal dealers Binonde dealers, Visayas and Mindanao dealers Both play limited role in revenue and profit
  • 15.  Price management: adopt the same SRP nationwide  Product management: offer exclusive models to strategic dealer while also protect those profit contributors  Account receivable management: use PPT to motivate early payment.  For e-commerce use another sister brand to differenciate from other dealers.
  • 16.  Skyworth cooperate with Cash cash pinoy and Lazada to implement online sales.  Skyworth take another sister brand COOCAA to specialize online sales.
  • 17. Concept 1:Channel-Design Decisions Concept 2:Channel-Management Decisions Concept 3:Channel Integration and System Concept 4: Conflict, Cooperation, and Competition Concept 5:E-Commerce Marketing Practices Concept 6:M-Commerce Marketing Practices
  • 18.  If every channel push you, you will definitely win.  To stand higher, standing on the shoulders of giants’