CHANNEL MANAGEMENT

OBJECTIVE
DISCUSS THE IMPORTANCE OF
DISTRIBUTION MANAGEMENT
DIFFERENTIATE DIRECT AND
INDIRECT CHANNELS
EXPLAIN THE DIFFERENT METHODS
FOR EACH
APPLY THE DIFFERENT METHODS TO
SPECIFIC INDUSTRIES OR
PRODUCTS
 IMPORTANCE OF CHANNEL
MANAGEMENT
TO MAINTAIN GOOD CHANNEL
RELATIONS
TO KEEP UP WITH THE DYNAMIC
DISTRIBUTION SYSTEMS
 EX. Personal computers
VAR- Value added retailers
Computer retailers
Mass resellers selling to large
companies
Direct sales/ Direct mail
Computer supermarkets (CompUSA)
Internet
TWO IMPORTANT CHANNEL
DECISIONS
CHANNEL SELECTION
CHANNEL MANAGEMENT
 CHANNEL SELECTION
DIRECT INDIRECT
– Information needs are – One-stop shopping for
high many products is
– Product customization is important
important – Availability is important
– Quality assurance – After-sales ervice is
matters important
– Purchase orders are
high
– Transportation ands
storage are complex
OTHER FACTORS IN DECIDING
WHICH CHANNEL TO USE
Level of commitment of the channel
– Some channels compete with product.
Ex. GAP and Levis
Customer Loyalty
– Some customers are loyal to stores
rather than the product
Advances in technology
 INDIRECT CHANNELS
REPRESENTATIVES
WHOLESALERS
RETAILERS
HYBRID CHANNELS
 DIRECT CHANNELS
OWN STORE
SALES FORCE
INTERNET
DIRECT MARKETING
TRADESHOWS
 DIRECT MARKETING
Direct Marketing is an interactive
marketing system that uses one or
more advertising media to effect a
measurable response and/or
transaction at any location
DIRECT MAIL/ TELEMARKETING
DIRECT MARKETING PROCESS
SET AN OBJECTIVE
DETERMINE THE TARGET MARKET
CHOOSE MEDIUM/MEDIA
GET A LIST
ANALYZE THE LIST
DEVELOP THE OFFER
TEST THE OFFER
ANALYZE THE RESULTS
DIRECT MARKETING METHODS
TELEMARKETING
– The list
– The offer
– integrity
DIRECT MAIL
– Copy
– Layout design
E-MAIL
 RECAP
DISCUSS THE IMPORTANCE OF
DISTRIBUTION MANAGEMENT
DIFFERENTIATE DIRECT AND
INDIRECT CHANNELS
EXPLAIN THE DIFFERENT METHODS
FOR EACH
APPLY THE DIFFERENT METHODS TO
SPECIFIC INDUSTRIES OR
PRODUCTS
 GROUP ACTIVITY
What kind of channel is appropriate
for your product?
Design a distribution system for your
product.
– ODWALLA ENERGY BARS
– HANDSPRING VISOR