Cours 1- Set Up A Route To Mkt Strategy Channel Flashcards
Mkt process
- Analysis : swot trades
- Strategy : segmentation,targeting
- Operating marketing :4ps : product price promo place
- Control
Place
Go to mkt strategy
Go to mkt strategy
Analysis : distribution
Strategy
Implémentation : channel relationships, trade mktg
Control
Marketing Channel
Set of interdépendant organisation that make à product available for consumption
What cost a lot
Distributing the product
Trade marketing manager
Manage the relationship between retailles and producteurs
Property principle
When u give a product to a retailer
Forbidden to impose à price
Pb for positionning
You can condition them
Part de marché :
Absolute MS
Sales of company / total sales
Performance indiciaire
Pénétration x weighted coverage
Pénétration
Si/TPCi = sales of i / total d’achat dans les retails
Weighted coverage
Mesuring how good we are in distribution
Pb we can have with Abolute market shake
Pénétration
Weighted coverage
Pb we can have with distribution
Average size
Numeric coverage
Dispersion
Average size
Total d’achat dans les retails / total de retails
Numeric coverage
Nombre de retail / total de conso
WC
Average size x numeric coverage x dispersion
If the problem is the pénétration
Need to come back to implémentation strategy
Of the pb is WC
Need to come back to D. Strategy
MDD
Brand of the distributors
Quality of clients portfolio
WC/n > 1 —> good
Ben chmark
Results of the competitors
Évolution of the sells
Comparison of diff markets
To choose market
The biggest ând growing
Depth of the markt
Prefer to choose according to the total sales of the company not thé MS
The diff choices customer have
Market share
Relationship between the firmes market share and the one of its main competitors
Provides useful indications on a compétitive gap between the company and the marketing leader
Évolution in channel management
3 phase
Phase 1
Fragmentijg retail
Phase 1
Firm’s objectives
Créating value for the final customer
Channel management décision phase 1
Channel design
Phase 2 firm’s objective
Creating value for the final customer
créating value for the intermédiate customer
Phase 2 Channel management décision
Channel design + trade mkting
Phase 3 firm’s objective
Co créating value :
Créating value for the final & intermediate customer + créating value with the intermediate customer
Phase 3 - Channel management décision
Channel design + trade marketing + Channel coopération & partnerships
Channel design décisions
Distribution approach
Channel structure
Channel bond
If penetration - and WC -
Channel strategy :
Enhancing client portfolio and investing to improve product acceptance
If pénétration + WC -
Improving sélectively thé distribution strategy : client portfolio
If penetration - WC +
Improving product acceptance by current clients -> convince retailers to buy
Penetration + WC +
Consolidating and defending the competitive position
disegregating the WC
Using
n : number of client served by the company
N: number of total clients in the market
Quality of the client portfolio
QP= WC/numeric coverage (n)
3 components of the Wc
- average size of the company’s clients = TPCi
- numeric coverage = n
- market dispersion index = N/TS
TPCi/TS = TPCi/n x n/N x N/TS
Pour analyser the relative market share :
MS market A de I / MS market A de J
How do we choose the distribution strategy ?drivers of the distribution :
positioning
Involvement : customer approach (subjective approach)
Nature of the good: product approach (objective)
Push logic
Create a need before the product is in the store
Pull logic
Wait for the customer to come to the store and ask for the product
Best approach
Twin
Types of distribution
Selective distribution
Exclusive distribution
Extensive intensive distribution
Extensive intensive distribution
The product is distributed by all the possible intermediaries Chi require it without a selection
Channel bond
Channel structure
Vertical dimension
Direct Channel
Manufacturer —> customers
Indirect
Manufacturer -> intermediary -> customers
Why indirect :
Lack of expertise need of distribution intermediaries
Indirect channel design choices for
Vertical or horizontal
Vertical
Channel length, degree and type of integration
Horizontal dimension chocked
Selection of intermediaries at diff levels : type of intermediaries, single distribution
Length vertical channel
Short :
Manuf—> retailers —> customers
Long :
Manuf—> wholesaler —> retailer —> customer
To choose the channel design
Compute the cost and profitability of each channel option of the same firm
Drivers of the choice
Control + risk + : direct
Control +/- risk +/-: short
Control -/risk-: long
Degree and type of integration
Buy make
Buy
Controlled channel : unbalanced power
Individualistic channel : balanced power
Make
Proprietary vertical integration
Between buy and make
Contractual integration :
exclusive distribution
Franchising
How to select channel members
WAC model
WAC model
Winner clients
Accessible clients
Compatible clients
Winner :
Grows quicker than the market
Sound financially
More efficient than the others because of its shopper approach and strong mana
Accessible
Doesn’t belong to a competitor integrated network
Nor to a long term competitors partnership program
Compatible
Approach to he market consistent with our strategy : values, transparency