Managing distribution channels
Vasiliy Starostin
Materials from www.marketingmo.com
Distribu(on, also known as placement, is one of the classic “4 Ps” of marke(ng mix Distribu(on channels play one of the key role in your en(re marke(ng strategy — they help you expand your reach to penetrate your market. *Цикл товародвижения по всем этапам PLC
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Распределение Производство Сырье, материалы, компоненты
Evaluate how your end-‐users need to buy
Your distribu(on strategy should deliver the informa(on and service your prospects need. For each customer segment, consider:
How and where they prefer to buy
Whether your product needs to be
serviced
Whether your product needs to be
customized or installed
Whether they need personalized educa(on and
training
Whether they need addi(onal products or services to be used along with yours
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B2B and B2C companies can sell through a single channel or through mul(ple channels that may include:
• Selling through your own e-‐commerce website.
Direct/Internet
• One or more sales teams that you employ directly. You may use mul(ple teams that specialize in different products or customer segments.
Direct/Sales Team
• Selling through your own catalog.
Direct Catalog
• Retailers sell directly to end-‐users via a physical store, a website or a catalog.
Retail
• A company that buys products in bulk from many manufacturers and then resells smaller volumes to resellers or retailers.
Wholesaler/Distributor
• A VAR works with end-‐users to provide custom solu(ons that may include mul(ple products and services from different manufacturers.
Value-‐Added Reseller
• A consultant develops rela(onships with companies and provides various types of services; they may recommend a manufacturer’s product or simply purchase it to deliver a solu(on to their client.
Consultant
• A company or person who buys inventory from either a manufacturer or a distributor, then resells it to an end-‐user.
Dealer
• You can outsource your sales func(on to a company that sells different manufacturers’ products to a group of similar customers in a specific territory.
Sales Agent
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DIRECT TO END USERS SELL THROUGH A DEALER NETWORK
SELL THROUGH A VAR (VALUE-‐ADDED RESELLER
You have a sales team that sells directly to Fortune 100 companies. You have a second product line for small businesses. Instead of using your sales team, you sell this line directly to end-‐users through your website and marke(ng campaigns. You have two markets and two distribu(on channels.
You sell a product through a geographical network of dealers who sell to end-‐users in their areas. The dealers may service the product as well. Your dealers are essen(ally your customers, and you have a strong program to train and support them with marke(ng campaigns and materials.
You sell a product to a company who bundles it with services or other products and resells it. That company is called a Value Added Reseller (VAR) because it adds value to your product. A VAR may work with an end-‐user to determine the right products and configura(ons, and then implement a system that includes your product.
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Ques(ons to consider
1. If users need personalized service, you can u(lize a local dealer network or reseller program to provide that service.
2. If your users prefer to buy online, you can create an e-‐commerce website and fulfillment system and sell direct; you can also sell to another online retailer or distributor that can offer your product on their own sites.
3. You can build your own specialized sales team to prospect and close deals directly with customers.
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Before you begin
1. Your distribu(on channels should support your posi(oning and brand strategy. – You are a selling value-‐added product – So}ware vendor
2. It’s especially important to think about distribu(on when you’re going a}er a new customer segment, releasing a new product, or looking for ways to aggressively grow your business.
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Minimize pricing conflicts
Mul(ple channels • Carefully map out the price for each step in your channel and include a fair profit for each type of partner.
• Then compare the price that the end-‐user will pay; if a customer can buy from one channel at a lower price than from another, your partners will righ�ully have concerns.
• Pricing conflict is common, and it can jeopardize your en(re strategy, so do your best to map out the price at each step and develop the best solu(on possible.
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