How do we come to decide upon the right or wrong channeling decision?
Obviously, any marketing activity that we design and implement has no value whatsoever, unless the product is placed on the shelf. In fact, proper channeling reflects on the realization of our entire marketing plan development. Truly, such a decision is critically affected by a number of parameters that have a direct impact upon our selection process;
A) Analysing Consumer Needs. We really need to know what do customers want, what do customers expect out of the channel?
For example, would a customer buy a car from TESCO?
B) Setting Channel Objectives has a strong impact upon our speed in product delivery (e.g. Optimum Stock Turnover Rates), care about the existing and prospective customer (e.g. Exceed optimum customer care levels) and cost measurement. These are three factors that need to be strongly considered by line management. We obviouly want our supply chain management best practices to be our competitive advantage and not a debatable issue.
C) Identifying major alternatives regarding the types and numbers of intermediaries and hence their responsibilities.
D) Evaluation of alternative channeling decisions on the ground that the conusmer has the product available when required at the right price involving the right blend-set of Stock Keeping Units (SKU's).
E) Adaptation of the channeling selection involves economic and control parameters. In many cases it is not what we desire in marketing but what we can afford and how can we eventually control performance effectivenes.
Does the channeling selection decision-making process has a direct impact upon Trade Marketing Strategies best practices?
It is soon to be discussed
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