Media as an Instrument of Control vs. Media as an Agent of Change
Media as an Instrument of Control In many countries, the media is used by the government as an instrument of control and for propaganda purposes. For instance, the Chinese media is heavily controlled and censorship is direct and deep. In countries like the United States, though there is no explicit control, the media is expected […]
The Role of the Independent Directors
With the explosion of scandals pertaining to corporates due to mismanagement and fraud in recent years, the regulators all over the world have been implementing a series of policies aimed at improving corporate governance and ensuring that companies follow ethical and normative rules of business. A part of this initiative has been to goad the […]
Pre Sales Process in Multi Level Marketing
We are living in exciting times. For anyone and everyone, there are abundant opportunities to earn decent income and achieve economic wellbeing, provided one is ready to work hard and work smart. For people who are interested in earning a second income or are interested in making selling a career, Multi Level Marketing offers unlimited […]
The Corporatization of the Media
In the earlier decades of the 20th century, there was a clear distinction between the corporates and the media houses with each existing in a symbiotic relationship with other. In other words, corporate houses were content with advertising in the newspapers and the TV channels and the media houses were happy with the advertising revenues […]
Porters Five Forces Analysis of Samsung
Introduction Porter’s Five Forces methodology is used in this article to analyze the business strategies of white goods makers like Samsung. This tool is a handy method to assess how each of the market drivers impact the companies like Samsung and then based on the analysis, suitable business strategies can be devised. Further, companies like […]
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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