BPI Exercise – Process Walk Through and Analysis
Business Improvement Projects are great way of unleashing the operational efficiency and increasing the effectiveness of the entire business operations. It helps Organizations prune their processes and eliminate redundancies when reviewed from time to time. Business operations are dependent upon well defined documentation and detailed as well as efficient processes no doubt. However, the processes […]
The Motorola Six Sigma Story – Birth of Six Sigma
No understanding of Six Sigma is complete without truly understanding where it came from – Motorola. The backdrop of the story shows how Six Sigma implementations changed the way Multi-National Corporations conducted operations worldwide. It started in 1981. Motorola like most American companies was reeling under the threat of Japanese competition. Recovering from World War-2, […]
Introduction to Information Technology (IT) Strategy
Introduction: What is IT Strategy and Why it is Important As the joke goes, A person who is sitting in front of a computer and not knowing what to do has been described as Intel Inside and Idiot Outside. Similarly, organizations that do not have an IT strategy in place are akin to clueless organizations […]
How to Draw a Fishbone Diagram
Given the usefulness of the fishbone diagram, it is essential that every student of quality and six sigma know how to use it. To aid the students in learning, here is a step-by-step procedure of how a fishbone diagram must be drawn: Step 1 – List The Effect (Problem) to the Right: A fishbone diagram […]
Strategy in Emerging Markets
Enter Low and Middle End Segments of the Market It has been found that many multinationals find their sweet spot in emerging markets when they cater to the lower and the middle end of the market segments. In other words contrary to popular perception, multinationals find that selling to these segments is much better than […]
The last two decades have changed the way business is getting conducted. Some businesses are still using traditional channel systems but advent of the Internet has revolutionized distribution channels. Companies are changing business models to leverage Internet advantage.
With open proliferation of information, customer expectations are reaching new heights. Companies need to figure out the right channel mix with multi channels’ strategies. From a manager stand point marketing channel is defined as any external agencies, which facilitate distribution of products and services.
The marketing channel is one of the key drivers for strategies around the marketing mix, i.e. product, price, place and promotion.
The channel flow is a flow which relates different agencies involved in the distribution of goods and products.
The channel structure is referred to as the combination of different channel members in achieving organization’s marketing mix strategy.
The marketing channel consists of various players like manufacturers, producers, wholesalers and retailers. Manufacturers and producers develop their own marketing channel to reach the end user. However, not all manufacturers have the expertise in managing channel participants. Therefore, they need wholesalers and retailers for distribution of goods.
There are three types of wholesalers; merchant wholesalers, agents and producer’s branch offices. Merchant wholesalers usually have good capacity of storing and managing goods. In contrast, agent works as middlemen for producers and end users. Retailers are responsible for selling goods and products to end users.
The major role of channel participants is to make the distribution and selling of goods and products efficient. Intermediaries provide manufactures opportunities which for them financially would not be feasible. Intermediaries provide greater market exposure, market intelligence, economies of scale and operational knowledge.
Conflict among channel partners adversely affects the distribution of goods and products. It is important for the channel managers to understand the nature of conflict and come with solution, which strengthens the distribution network.
However, all issues in the channel cannot be considered as a conflict. The channel manager needs to assess the frequency of disagreement, level of disagreement and importance of issue.
The top reasons for an emergence of conflict among channel partners are as follows:
Conflict between the channel partners can be resolved by improving communication among themselves and also with producer. Another way of solving conflict is by directing all channels to a single objective of creating customer delight.
Multi channel marketing system has become a prominent way through which goods and products are delivered to end users. The multi channel system enables the companies to deliver goods and products to end users as per their preference. The delivery of goods can be through store, website, mail order, etc.
Another innovation in the marketing channel system is the franchise. Franchise enables brand recognition, standardization of operation structure, access to learning curve and less financial investment.
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Communication Systems and Groupware – Information System Concepts that Apply in All Functional Areas of Business
February 12, 2025
