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10. Distribution Strategy
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Building Direct Customer RelationshipExample: Dell’s Direct Model
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Outline
The functions of distribution channelsThe Optimal Channel DesignVertical Marketing SystemsThe Multi-Channel SystemChannel Conflicts
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Establish channels for different target markets and aim for efficiency, control, and adaptability.
Kotler on Marketing Channels
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What is a Value Network and Marketing-Channel System?
• Value Network• Marketing channel
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行 銷 通 路
• A distribution channel creates value by generating form, possession, time and place utilities.
• 為何需要使用中間商?– Increase efficiency– Sorting – Facilitate the searching process
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How a Distributor Reduces theNumber of Channel Transactions
= Customer= Manufacturer
A. Number of contacts without a distributor
M x C = 3 X 3 = 9
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789
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How a Distributor Reduces theNumber of Channel Transactions
= Distributor= Customer= Manufacturer
B. Number of contacts with a distributorM x C = 3 + 3 = 6
Store
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Consumer Marketing ChannelsConsumer Marketing Channels
WholesalerWholesaler JobberJobber RetailerRetailer ConsumerConsumer
ConsumerConsumer
RetailerRetailer ConsumerConsumer
ManufacturerManufacturer0-level channel
WholesalerWholesaler RetailerRetailer ConsumerConsumer MfgMfg2-level channel
MfgMfg3-level channel
1-level channelManufacturerManufacturer
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通路規劃的目標
Providing service outputs demanded by relevant target markets
Bucklin specifies service outputs: Spatial convenience Lot Size Assortment/Variety Delivery Time Service Backup
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行銷通路的功能
InformationPhysical PossessionOwnershipPromotionNegotiationFinancingRisking
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Common Features for Channel Functions
It usually needs resources to perform them.They can be performed better through specialization.They can not be eliminated.They can only be shifted through M, R and customers.
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通路結構
通路長度 : 直接 vs. 間接
Tradeoff between coordination and efficiency
Transaction cost theory 通路寬度 (Market coverage)密集式配銷 (便利品)
獨家式配銷 (特殊品)
選擇式配銷 (選購品)
Shan-Yu Chou 14Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 15-14
Figure 15.4 The Value-Adds vs. Costs of Different Channels
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Evaluating the major channel alternatives
Economic criteriaControl criteriaAdaptive criteria
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Sellingcosts
(dollars)
Level of sales (dollars)
Break-Even Cost Chart
Companysales force
Manufacturer’s sales agency
SB
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Corporate Administered
Contractual
Cooperation Complete Good Fairly goodControl Ownership Economic
powerContracts
Example Sears P&G McDonald‘s
Vertical Marketing System
整合式 VMS管理式 VMS契約式 VMS
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整合式 VMS
整合式 VMS
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Conventional Distribution Channel vs. Vertical Marketing Systems
Verticalmarketingchannel
Manufacturer
Retailer
Conventionalmarketingchannel
Consumer
Manufacturer
Consumer
Retailer
Wholesaler
Who
lesa
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Two or more companies at one level join together to follow a new marketing opportunity.
Horizontal Marketing Systems
Nestle and General Mills work together to market cereal outside of North America
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Horizontal Marketing Systems
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多重行銷通路系統
Benefits Increased market coverage Lower channel cost More customized selling
Costs Channel conflict and control problems
Showrooming: Don’t fight it. Embrace it.
A full 69 percent of shoppers now use mobile devices to do product and price research, often in-store.Reverse showroomingOne study showed that shoppers who do showrooming are almost twice as likely to purchase from the same retailer (38%) than elsewhere (21%).
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Marketing TechnologyOmnichannels
Macy’s is turning 300 of its 800-plus stores into combination retail outlets and online warehouses to combat competitors such as Amazon.com.Nordstrom and Toys R Us have used omnichannels, realizing fewer markdowns, improved margins, and faster inventory turnover.
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Shopper Marketing
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Focus on the entire marketing process on turning shoppers into buyers as they approach the point of sale, whether during in-store, online , or mobile shopping.
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Disintermediation
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通路衝突
水平式衝突
Free-riding across dealers Special Services Quality Certification by Stores垂直式衝突
Double-marginalizationFree-riding across manufacturers
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Vertical Channel Conflict
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Example: Comcast vs. Netflix(Slow Motion Video)
Comcast is the distribution channel for competitors such as Netflix.Cable companies such as Comcast limit the amount of data their Internet service subscribers can download.Comcast has its own online video-streaming app called Xfinity, by which subscribers can stream programming using Xbox game consoles.
Shan-Yu Chou 31Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 15-31
Causes of Channel Conflict
Goal incompatibility
Unclear roles and rights
Differences in perception
Intermediaries’ dependence on the manufacturer
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Strategies for Multi-Channel Conflicts
New customersDifferent brands, products, or servicesCompensation schemesComplementary relationship
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The Mix of the Internet Channels
Three kinds of service:• Finding the customers• Transacting the sale and providing service• Holding inventory and delivering products
Source:Forrester Research, Inc.
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垂直契約限制
Franchise FeeExclusive DealingExclusive TerritoryResale Price Maintenance (RPM)Slotting AllowanceTying Contract
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通路動態
Introduction Typically through specialty channels
Growth Higher volume channels appear
Maturity Moving to lower cost outlets
Decline Even lower cost channels emerge.
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Figure 17.6: Channel Value Added and Market Growth Rate
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Example:Dell Computer Corporation
• Innovative Concept– Custom Design– Direct Sales
• Virtual Integration