IMPORTANCE OF CHANNELS
* Represents opportunity cost
* Convert potential buyers to profitable customers
* Not just serve markets, they must make markets
* Affects all other marketing decisions
* Push strategy – sales force, trade promotion
* Pull strategy – advertising
* Both push and pull
* Coca-cola, Intel, Nike
CHANNEL DEVELOPMENT
* New firm with existing intermediaries
* Convincing intermediaries is a problem.
* If firm is successful, Uses retailers, distributors, merchants, outlets, sales agents
* Customer’s shopping habits vary
* Retailers – Germany’s Aldi, UK’s Tesco
* Marks & Spencer, Wal-Mart – same selling formula
HYBRID CHANNEL
* Go-to-market concept
* Companies have to make sure that these channels work well together and should meet targeted customers’ demand.
* Channel integration.
* ICICI – branches, franchisees, kiosks, micro-finance institution.
DEVELOPING DISTRIBUTION CHANNEL FOR RURAL MARKETING
* Hub and Spoke model – Pepsi & Coke
* Large distributors in bigger towns (HUB)
* – served by the company with greater frequency.
* BPCL – mobile rural marketing vehicle
* New connection of LPG , refilling unit.
* Essilor – van
* Alegion insurance Services Ltd –brokerage firm
* Maruti Omni van -> office unit
* TTK prestige – SHG & NGO in ANDHRA to market its Pressure cooker.
* HUL – linkage mechanism with SHG
* Insurance companies like Birla Sun Life, Aviva, Max New York Life have entered in tie-up with SHG,NGO & cooperatives
* Win-Win situation
UNDERSTANDING CUSTOMER NEEDS
Different consumers have diff needs during their purchase process.
Acc to Research – Nunes & Cespedes said that buyers fall into one of four...