Success Strategies in Channel Management

1. Success Strategies in Channel Management Preparing a Marketing Plan for Channels Establishing and Implementing The Value Strategy

2. Establishing and Implementing The Value Strategy Strategic Considerations Sec1-1.ppt Factors in Deriving Economic Value Sec1-2.ppt

3. Delivering Value -The Search for a Sustainable Competitive AdvantageA strategy that does not last is not effective or optimum..marketing channels can be viewed as exchange facilitator – or deliverers of value. Delivering Value For marketing channels to succeed in a competitive marketplace, independent marketing organizations must combine their resources to pursue common goals. Focus on What Markets Want Marketing, Exchange and the Value Concept Specific entrepreneurial aspects of the strategy formation • Value Driven MarketingUnderstand the Value; • Create/Configure the Value; • Communicate the Value; • Deliver Value. Strategy and Planning Deliver Value/Delivered Value

4. A strategy that does not last is not effective or optimum.. Marketing channels have traditionally been viewed as a mostly physical bridge between producers and users.. Since the core of marketing is the Value Exchange Process, marketing channels can be viewed as exchange facilitator – or deliverers of value. This allows marketing channels to be defined as an array of exchange relationships that create customer value in the acquisition, consumption, or disposition of Value offers – products (products). A sense of shared purpose connects organizations and individuals in the marketplace. A Channel Relationship Model (CRM) serves as a framework for presenting the material addressed throughout this program Delivering Value -The Search for a Sustainable Competitive Advantage

5. Delivering Value • The Elements of Successful Marketing Channels • For marketing channels to succeed in a competitive marketplace, independent marketing organizations must combine their resources to pursue common goals. • Members of such organizations are linked together by a shared purpose.

6. Before managers really had a good appreciation of marketing as a fundamental for success, they used to focus their attention on what they believed the market wanted. In the first stage, known as the Product Centred Approach, In the second stage, known as the Promotion or Selling Approach, A third stage is the most persistent non marketing approach in business – the Low Price is The Answer to All Problems Approach. Marketing is and always has been about exchange. Focus on What Markets Want.

7. Marketing, Exchange and the Value Concept • The discipline of economics focuses on (limited) resource allocation. • Marketing focuses on the process of exchange that underlies that allocation. It is about the exchange which takes place between consumer and supplier.

8. The core concern of marketing is trying to get value (payment) from the market through offering value to it. To do this. marketing is concerned with adding maximum value to a product to make it attractive and desirable to consumers while achieving maximum returns on their investment Customer desired benefits and outcomes The decision either to sacrifice or invest is dependent upon some assessment of what will occur as a result of value exchange. This can be thought of as a bundle of desired benefits and outcomes.. The marketer's problem is to create attractive exchange value, by understanding not only what buyers want (value) but also how buyers assess their investments in getting value. These include: The Value Exchange Approach to Marketing

9. Value Driven Marketing • The Value System consists of four key elements – • Understand the Value; • Create/Configure the Value; • Communicate the Value; • Deliver Value.

11. Deliver Value/Delivered Value • Delivering the value expected by the customer. • This involves Logistics as well as Channel structure and performance. Superior value delivery can be defined as providing a value offering that the customer considers gives a net positive value greater than that offered by competitors. • Value can mean many things, including: • Profit, gain or economy/savings Design or appearance • Pleasure, comfort and pain avoidance (physical and emotional) • Convenience Performance/dependability (will it do the job well?) • Safety or security Loving and affection • Sex appeal Social approval • Pride, prestige/status

12. Buyers Investment • Acquisition Costs • Use/Consumption Costs • Change Over/Disposal Costs

13. Value is an assessment (quantifiable as well as perceptual) of the investments needed and the benefits derived from the exchange process. Various types of value can be derived from channel exchange. Organisations cannot exist without markets, nor can markets exist without organisations. For exchange to occur in a marketing channel, each exchange partner - must meet four conditions. They must: Possess goal preferences. Anticipate the outcomes of the exchange. Direct its actions toward goal preferences. Create or accept new behaviours to facilitate goal attainment. Value (and Costs) In Marketing Channels

15. Long term business success is gained through the use of strategic thinking. We are aiming at developing a method for creating a strategically focused business development plan. From determining what direction the organisation should take to succeed; Establishing the Goals and Objectives; Undertaking the required Analysis to have better information and understanding; Developing the right strategies; Creating the Plan; Implementing it and finally ensuring it works properly. The following diagram shows the main elements involved. The finished plan itself is not the objective. Rather, it is the processes involved in creating the plan which will enable the manager to make better decisions and to be able to adjust them under varying circumstances. Strategy and Planning

17. · Searching actively for innovative ways the organization can improve on what it is already doing. · Seeking new opportunities for the organization to pursue. Developing ways to increase the organisation's competitive strength and put it in a stronger position to cope with competitive forces. · Deciding how to meet threatening external developments. · Motivating individuals throughout the organization to work more effectively. · Devising ways to build and maintain a competitive advantage. · Directing resources away from areas of low or diminishing results toward areas of high or increasing results. · Choosing which value offers to pursue or to abandon. Specific entrepreneurial aspects of the strategy formation process include:

18. Developing Optimum Strategies

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