SECTION 5 Distribution channels www.regenesys.co.za
INTRODUCTION • If we think of marketing as a value creating and exchanging process, functioning within an integrated, seamless organisational unit, then: Good distribution are essential to physically • deliver that customer value, thereby helping to build solid, profitable customer relationships; which contributes to creating a competitive advantage and long-term success for a firm www.regenesys.co.za
CREATING CUSTOMER VALUE • An individual company cannot create and deliver customer value all by itself • It must work within a larger network of partners – a value delivery network – to accomplish this task www.regenesys.co.za
MARKETING CHANNELS AS VALUE DELIVERY NETWORKS • “A value delivery network is made up of the company, suppliers, distributors and ultimately customers who partner with each other to improve the performance of the entire system” (Kotler and Armstrong, 2016:277). • “A marketing (or distribution) channel is a set of interdependent organisations that help make a product or service available for use or consumption by the consumer or business user” ibid www.regenesys.co.za
IMPORTANCE OF MARKETING CHANNELS • Not many producers sell their goods directly to final users • Instead, most use intermediaries, such as retailers, to bring their products to market • A company’s channel decisions have far- reaching, direct impacts on every other marketing decision • A company’s pricing structure is a direct outcome of who it selects as channel partners www.regenesys.co.za
IMPORTANCE OF MARKETING CHANNELS • Unlike the flexibility and control that marketers have over pricing decisions, distribution channel decisions often involve long-term commitments to other firms • Value adding functions of channel members Transactional • Logistical • Facilitating • www.regenesys.co.za
TYPES OF MARKETING CHANNELS FOR B2B MARKETS • A product or service can follow various possible routes from its producer to the final consumer or business customer • Marketers have to find the most efficient channel from the alternatives available • Number of channel members • Multichannel distribution systems • Disintermediation • Answer the questions in your guide on Tesla’s marketing channel strategy www.regenesys.co.za
PLANNING A B2B MARKETING CHANNEL STRATEGY Channel design • Channel coverage • Intensive • Selective • Exclusive • Channel management decisions • Selecting suitable channel partners • Managing and motivating channel partners • Evaluating channel partners • Remember to complete the activities in your • guide www.regenesys.co.za
Recommend
More recommend
