Ambika Oberoi and Abhishek Pandey

8/14/2019 Ambika Oberoi and Abhishek Pandey

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ASSESING MARKETINGASSESING MARKETINGCHANNELCHANNEL

PERFORMANCESPERFORMANCES

By:By:Ambika OberoiAmbika Oberoi

Abhishek PandeyAbhishek Pandey


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Approach to channel managementApproach to channel management

Channel mix optimization approachChannel mix optimization approach

Methodology for rapid achievement of channelMethodology for rapid achievement of channelefficiencyefficiency

Targeted channel developmentTargeted channel development

Channel based CRMChannel based CRM


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Designing of marketing channelDesigning of marketing channel

to describe the existing marketing channel, by assessing theto describe the existing marketing channel, by assessing theinfluence of environmental and enterprise factors;influence of environmental and enterprise factors;

to identify the ideal marketing channel, by determining theto identify the ideal marketing channel, by determining theneeds of consumers and the goals of marketing channelneeds of consumers and the goals of marketing channel

to determine the gap between ideal and restricted byto determine the gap between ideal and restricted byfactors marketing channel, to perform the formation of factors marketing channel, to perform the formation of alternative marketing channels, an evaluation of alternativesalternative marketing channels, an evaluation of alternativesand to select the intermediaries of marketing channel.and to select the intermediaries of marketing channel.


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Assessment criterion for the Selection of Assessment criterion for the Selection of the most appropriate channel:the most appropriate channel:

2.2. PRODUCT FACTORS:PRODUCT FACTORS:

iv.iv. Physical Nature:Physical Nature:

Perishability of the productPerishability of the product

Seasonal variation causing inventory problemSeasonal variation causing inventory problemUnit value of the productUnit value of the product

Inventory investment requiredInventory investment required

Customer service requirementCustomer service requirement


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i.i. Technical natureTechnical nature

Complexity of the productComplexity of the product

Advice on product useAdvice on product use

Installalation requirementsInstallalation requirements

Training requirementTraining requirement

iii.iii. Length of product lineLength of product line

Decision related to whether to use single channelDecision related to whether to use single channelfor entire line or split the line and use multiplefor entire line or split the line and use multiplechannelschannels ..


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1.1. Market Factors:Market Factors:

i.i. Existing market structureExisting market structureIt includes modes of operation, geographical factors,It includes modes of operation, geographical factors,size and placement of populationsize and placement of population

iii.iii. Nature of the purchased deliberation Nature of the purchased deliberationFrequent purcahses need more buyer seller contactsFrequent purcahses need more buyer seller contacts

Formal specifications and formal bids can be used inFormal specifications and formal bids can be used inindustrial productsindustrial products


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Institutional factors:Institutional factors:

i.i. Financial ability of channel membersFinancial ability of channel members

iii.iii. Promotional ability of channel membersPromotional ability of channel members

v.v. Post-sales service abilityPost-sales service ability


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Assessment of the channel design:Assessment of the channel design:

Effectiveness:Effectiveness: measured by analyzing whether themeasured by analyzing whether theobjectives set for the channel are achieved.objectives set for the channel are achieved.

Efficiency:Efficiency: concerned with the input expended for concerned with the input expended for

achieving the level of outputs.achieving the level of outputs.Equity:Equity: the constituents of the channel should bethe constituents of the channel should beremunerated to the extent of their participation in theremunerated to the extent of their participation in thechannel.channel.

Scalability:Scalability: the extent to which an existing channel isthe extent to which an existing channel isscalable and can handle unexpected surge in demandscalable and can handle unexpected surge in demandFlexibility:Flexibility: channel must fulfill the rapily changingchannel must fulfill the rapily changingdemand in case of introduction of new products atdemand in case of introduction of new products atfrequent intervalsfrequent intervals


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Assessment of cost structure-Assessment of cost structure-the value chainthe value chain

The value a company creates is measured by theThe value a company creates is measured by theamount the buyers are willing to pay for its product or amount the buyers are willing to pay for its product or service; and a business is profitable when the value itservice; and a business is profitable when the value itcreates is higher than the cost of performing suchcreates is higher than the cost of performing suchactivities.activities.

The value system comprises of the suppliers andThe value system comprises of the suppliers and

distribution channels. Linkages occur between thesedistribution channels. Linkages occur between thesevalue chains of a system and can be used to have avalue chains of a system and can be used to have acompetitive advantage.competitive advantage.


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The structure of an industry lies in the competitiveThe structure of an industry lies in the competitiveforces that determine their profitabilityforces that determine their profitability

(Based on Poters Model)-(Based on Poters Model)-

The power of buyers/intermediariesThe power of buyers/intermediariesThe power of suppliers/feedersThe power of suppliers/feedersThreat of new entrantsThreat of new entrantsThreat of substitutesThreat of substitutesRivalry among existing competitorsRivalry among existing competitorsPressures from investorsPressures from investorsGovernment/external influencesGovernment/external influences


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Companies can gain cost advantages by:Companies can gain cost advantages by:

Lowering the costLowering the cost

Enhancing differentiationEnhancing differentiationChanging the competitive scopeChanging the competitive scope

Spawning new industriesSpawning new industries


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Commercial Risk assessmentCommercial Risk assessment

Comparison with others in the same industry.Comparison with others in the same industry.

Comparison with others among your distributors.Comparison with others among your distributors.

Identifying any differences.Identifying any differences.

Explaining the differences.Explaining the differences.

Discussion with distributor, if appropriate.Discussion with distributor, if appropriate.

Discussion with credit manager.Discussion with credit manager.

Assessment in relation to the business beingAssessment in relation to the business beingcontemplatedcontemplated


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Trading assessmentTrading assessment

Assessing the credit limits.Assessing the credit limits.

Monitoring the settlement profitsMonitoring the settlement profitsGuard against order increasesGuard against order increases

Communication with the distributor Communication with the distributor

Communication with the credit controller Communication with the credit controller


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THANK THANK

YOU!! YOU!!

Ambika Oberoi and Abhishek Pandey

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