6.
Discuss the implication of marketing mix in managing your channel strategy (5 points)
The marketing mix, often referred to as the 4 Ps (Product, Price, Place, Promotion), plays a significant role in
managing a channel strategy, ensuring that your distribution network aligns with overall marketing objectives.
Here’s how each element of the marketing mix impacts channel strategy management:
1. Product
Channel selection: The nature of your product will influence which distribution channels are most suitable. For
example, luxury or niche products may require exclusive or selective channels, while mass-market products
need wider distribution.
Product complexity: If your product requires a lot of after-sales service or customization, a direct channel or
channel partners with technical expertise may be needed.
Packaging and presentation: Channels must support how the product is displayed and delivered to the
consumer. For instance, online channels may require special packaging for shipping, while in-store channels
might focus more on aesthetics and shelf placement.
2. Price
Pricing strategy and margins: The price you set for your product will affect which channels you can use. For
example, high-end products with premium pricing may be sold through exclusive distributors, while lower-
priced products might need broader, cost-effective channels to ensure mass availability.
Channel conflict: Managing price consistency across different channels is crucial. If different channels offer the
same product at different prices, it can lead to channel conflict, damaging relationships and brand trust.
Discounts and incentives: Price promotions and discounts offered through certain channels (e.g., online vs.
physical stores) can influence customer behavior and drive sales in targeted channels.
3. Place (Distribution)
Channel selection: This is the core of managing channel strategy. Deciding whether to distribute directly to
consumers (e.g., through a company website) or through intermediaries (wholesalers, retailers, etc.) affects
control over the customer experience and costs.
Market reach: The broader your distribution network, the easier it is to reach a wide audience. However, wide
distribution may dilute brand image if not carefully managed.
Channel partnerships: Collaborating with third-party distributors can help expand your market presence, but
you’ll need to carefully manage these relationships to maintain brand integrity and ensure effective product
delivery.
4. Promotion
Channel-specific promotion: Tailoring your promotions to the specific needs of each channel can boost the
effectiveness of your marketing efforts. For instance, online channels may require digital marketing strategies
like SEO, PPC, or influencer partnerships, while traditional retail channels might rely on point-of-sale
promotions.
Cooperative promotion: Many brands collaborate with their distribution partners on joint promotional efforts,
like offering shared advertising or in-store displays, which can help align goals and improve visibility across
channels.
Channel communication: Ensuring that your promotion aligns with how the product is positioned in each
channel helps to maintain a consistent brand message and prevent confusion across different distribution
points.
Implications for Channel Strategy Management
Channel Integration: A successful channel strategy requires the seamless integration of the marketing mix
across all channels. This ensures consistency in product availability, pricing, and promotions, while also
adapting to the unique needs of each channel.
Customer Experience: Managing your channel strategy with the marketing mix in mind helps ensure a smooth,
cohesive customer experience, regardless of the channel they use to interact with your brand.
Optimization of Resources: Aligning your marketing mix with your channel strategy allows you to better
allocate resources—whether investing in exclusive partnerships or developing omnichannel promotional
campaigns.
By carefully considering the marketing mix when managing your channel strategy, you can ensure that your
product reaches the right customers, at the right time, and through the most effective channels.
Why is it necessary for manufacturers to analyze all the variables confronting is distribution Issues to be
able to design the channel structure? (3 points)
It is necessary for manufacturers to analyze all variables in distribution issues because these factors, such as
market demand, cost, competition, and customer preferences, directly influence the efficiency and effectiveness
of the channel. A thorough analysis helps manufacturers design a structure that optimizes delivery speed,
minimizes costs, enhances customer satisfaction, and aligns with business goals, ensuring competitive
advantage and long-term success in the marketplace.
Information received by the channel manager indicates that the market size is increasing. Discuss three
implication of this information to the channel manager
An increasing market size implies growth opportunities for the channel manager. First, it may require
expanding distribution networks to meet higher demand. Second, the channel manager can negotiate better
terms with retailers due to increased sales volume potential. Lastly, there’s an opportunity to invest in
marketing and partnerships to capture a larger share of the growing market, ensuring competitive advantage
while capitalizing on the rising consumer base.
You were requested by P&G to conduct a performance assessment of their authorized retailer -
MEGAMART. Cite 3 criteria and explain why you have chosen these criteria.
For MEGAMART's performance assessment, I would use the following criteria:
1. Sales Growth: Measures MEGAMART’s ability to drive revenue, reflecting its market reach and
product demand.
2. Customer Satisfaction: Evaluates service quality and brand experience, which are crucial for P&G’s
reputation.
3. Inventory Management: Assesses stock availability and turnover rates, ensuring efficient product
supply and reducing the risk of stockouts or overstocking.These criteria directly impact profitability,
brand image, and operational efficiency.
Is it important for manufacturers to consider the channel members / intermediaries in their pricing
decision? Justify your answer.
Yes, it is crucial for manufacturers to consider channel members in their pricing decisions. Intermediaries play
a significant role in product distribution, affecting both costs and market reach. Their input on pricing can
influence retail markup, promotional strategies, and ultimately, consumer perception. Additionally, aligning
prices with intermediaries' expectations fosters strong relationships, ensuring efficient distribution and
maximizing sales potential. Ignoring their perspectives may lead to channel conflicts and diminished overall
profitability.
What selection criteria will you apply to assess possible intermediaries and Why?
1. Salling capabilities or sales strength
Number of salespeople: A large team reaches more customers, ensuring wide market coverage.
Technical capabilities: Using digital tools boosts sales efficiency and customer service.
Product knowledge expertise: Understanding the product improves customer advice and trust.
2. Sales Performance.
Inventory turnover: Efficient stock management avoids backlog and waste.
Market share: A large share indicates competitiveness and customer acceptance of Lang-farm products.
Profitability: Ensures sustainable and beneficial partnerships.
3. Market Segment Coverage
Geographic & demographic targeting: Ensures distributors reach Lang-farm's ideal market.
Cultural adaptability: Aligning with local tastes boosts acceptance.
4. Operational Efficiency
Inventory turnover & supply chain: Efficient management reduces costs and speeds up delivery.
COGS: Optimized costs improve profitability.
5. Innovation & Development
Time to market & new product revenue: Shows the distributor's ability to adapt and innovate.
R&D investment: Reflects commitment to long-term growth.
6. Reputation
Customer loyalty & brand recognition: Indicates high-quality service and product recognition by customers and
industry.
7. Management Ability
Decision-making & strategic planning: Ensures effective business direction.
Risk management: Provides stability and sustainability.
8. Attitude
Sales enthusiasm & adaptability: Keeps distributors motivated and flexible.
Ethical behavior: Protects the brand’s reputation.
9. Customer Relationship Management (CRM)
Customer communication & complaint resolution: Builds loyalty and satisfaction.
Loyalty programs: Encourage repeat business.
10. Technological Capabilities
E-commerce & engagement tools: Leverage technology to improve customer experience.
Quality control: Ensures high standards before reaching customers.
These criteria help company comprehensively evaluate from sales performance to the level of commitment to
long-term development of distributors.
1. Product Uniqueness: diverse product, fresh food
What makes the product popular in the market: quality good, strong and reputable brand, widespread store
network, reasonable price and frequent promotion
2. Làm thế nào để đưa ra các tiêu chí đánh giá
3. Tiêu chí nào để đánh giá các thành viên trong kênh phân phối
4. kênh phân phối của win có hiệu quả k?vì sao? . build customer trust, reach more customers, attract
customers and increase revenue
5. What is the company about? quality product, retail model, competitive pricing, customer service, strong
brand.
6. What competitive advantage does the company have?
Store network
diverse and quality products
competitive pricing
strong brand
strategic partnerships with suppliers
7. Những chỉ tiêu, tiêu chí đánh giá kênh pp
8. Làm thế nào để đánh giá hiệu quả các thành viên kênh pp sales analysis, supply capability, service quality,
costs,sales performance,
9. KPI?
Number of salespeople
Technical capabilities
Salesperson’s interest in the product
10. Áp dụng chiến lược pp gì?
11. Điểm khác biệt của 2 sales….
12. Tiêu chí 1,2,3,4 có ý nghĩa gì:
1: not at all
2: acceptably
3: well
4: very well
13. Hãy mô tả vận hành công ty Winmart (operates)
Store network (winmart supermarket, winmart+ convenience stores)
Supply chain management
Customer service
Quality and safety control
Corporate social responsibility and sustainability
14. Ngoài cung cấp các dịch vụ khách hàng công ty còn cung cấp thêm dịch vụ gì?
product processing collaboration
b2b services
health and environmental protection
15. Distribution Channel Members:
Quality of products
Product assortment
16. Criteria for evaluating- Tiêu chí đánh giá
sales capabilities, business methods, development potential, payment ability