Marketing Mix – Meaning and its Elements
Neil Borden in the year 1953 introduced the term Marketing mix, an extension of the work done by one of his associates James Culliton in 1948. Marketing Mix – A mixture of several ideas and plans followed by a marketing representative to promote a particular product or brand is called marketing mix. Several concepts and […]
Product Leadership and Organizations
Any management student will certainly be interested in knowing what it is that makes organizations like Apple, Sony, Microsoft & Google etc stand apart from the rest and be counted as the market leaders. From an organizational perspective, these companies stand apart from the rest in their approach to product development that enables the organizations […]
Key Metrics for Evaluating Social Media Performance
Measuring the success of social media efforts goes beyond counting likes or shares. To truly understand the impact of your strategies, it’s essential to track meaningful metrics that align with your business goals. These metrics provide valuable insights into what’s working, what’s not, and how you can adjust your approach for better results. Why Metrics […]
The Need to Keep Journalism Free from Paid Public Relations
The Media is an Extension of Big Business Now In recent years, the concept of paid news and advertorials that are a combination of editorials and advertisements have become commonplace around the world. While the media always had a cozy relationship with the advertisers because both depend on each other for sustenance, the recent trends […]
Changing Media Landscapes and their Impact on Society
In previous articles, we have discussed how media affects society and effects changes in the way people think and act. This article looks at how the historical function of media as a watchdog and a purveyor of public good have now evolved to a point where the media sets the agenda for the country to […]
A normal way of functioning for a company is to procure raw materials, use its expertise in creating the product and then distribute to the customer.
Companies have to convert this supply chain into a value network as to develop and maintain partnership with different stakeholders.
A network which creates partnership and value in purchase, production and selling of products is referred to as value network.
Value network looks at the whole supply chain system players as partners rather than customers.
The purpose of value network is to increase productivity, save cost and increase revenue. Companies are willing to take the procurement process on online for accuracy and speed. Companies exactly know each partner’s role in influencing or disrupting normal operations.
Companies have developed distribution channel and network through which it supplies final product to customers. This distribution channel and network are referred to as the marketing channel.
Companies invest time and money in a well functioning marketing channel. The marketing channels are an integral part of marketing and promotional activity of the company.
Core competency for a company lies in developing a product which satisfies a particular need of the market.
A company if it decides to sell a product on its own than it is diverting from main line business resulting in operational difficulties.
Marketing channel is ears and eyes of companies in the market. They provide companies with valuable information of customers, competitors and other players in the market.
Dell’s computer exclusively uses direct marketing (the Internet and express mail service) in reaching customers are different of marketing channel depending upon the number intermediaries like retailer, wholesaler and distributor.
Channels are also used by companies providing services; for example, hospital and fire station have to strategically locate for people to reach without considerable efforts.
In designing marketing channel companies analyze customer needs and preference for a given product. Further marketing channel should fall in line with overall objectives of the company in cost and desired output level.
Companies then need to explore various marketing channels like direct marketing, tele-marketing, direct mail, etc. to find the right fit to reach the customer.
Each channel short listed has is to be evaluated on operational, cost effective and flexibility criteria. Once the channel is designed, companies look forward to selecting partners with characteristics, which have a positive impact for the product.
Channel members need to get the right amount of training as to full understand their role with respect to customer and product.
Companies need to develop a mechanism as to monitor functioning of marketing channels on criteria based on total customer satisfaction.
After reviewing marketing channel companies should modify them to improve functioning and productivity.
Companies are looking forward to innovating business functioning as to stand up to the competition and changing market scenario. This has seen rise different types of marketing channel.
In a vertical marketing channel, the traditional producer-wholesaler-retailer becomes one functional unit. This can be achieved through franchise or single ownership.
In horizontal marketing channel two or more un-related agencies combine to exploit the market opportunities, for example, banks in super markets.
In multi-channel marketing systems, companies use different marketing channels to reach different customer base or segment.
In vertical channel conflicts are between members of same channel. In horizontal channel conflicts are between similar service providers in a different channel. In multi-channel conflict arise when a different channel serves the same market.
The first step in conflict resolution is to identify the cause for the conflict. Next step is to manage the conflict. This can be done by setting up clear mandate for each member and their role in the overall objective of the company.
Further, joint membership, diplomacy and exchange of team members are other ways in resolving conflicts.
Companies need to design and manage marketing channels in such a way that they are always able to deliver value to customer.
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