1. 1
Channel Dynamics
(Multi Channel Marketing):
รกฐานลกค้า ด้วยการบริหารช่องทางรุกฐานลูกคา ดวยการบรหารชองทาง
Agenda
• What is Distribution ?
• Why Distribution ?
• What is Marketing Channel ?
• Why Multi Channel Marketing?
• How to plan for Multi Channel ?
• Causes of Channel Conflict
2. 2
ความแตกต่าง
•งานการตลาด กับ งานขาย•งานการตลาด กบ งานขาย
•Channel Management
เป็นความรับผิดชอบของใคร
What is Marketing Management?
Marketing management is theMarketing management is the
art and science
“Creative & Formulated” of“Creative & Formulated” of
Choosing TMChoosing TM
Getting, Keeping, Growing CustomerGetting, Keeping, Growing Customer
Through Creating, Communicating, DeliveringThrough Creating, Communicating, Delivering
“Superior Customer Value”“Superior Customer Value”.
3. 3
WHAT IS DISTRIBUTION ?
Definition : Getting product to the target Market’s
place (that the target market expect to buy)
and ensure product available at right time
and right quantities in order to satisfy the
target consumers’ needs.
C t C G Ch lComponent : Coverage (Geo & Channel)
Penetration / Service Level
Merchandising
WHY DISTRIBUTION ?
สินค้าดี ภาพพจน์ดี ไม่มีที่วางขาย ใครจะได้ซื้อ
BRIDGE vs. BOAT
to get products across a river.
4. 4
Promotion
DISTRIBUTION FUNCTION
Customers Consumers
Product Place Customers Consumers
Customers Consumers
Price
Who will win the competition is depend on the whole Marketing Strategies including Place
1
2
Identify society
and customer values
Select the value
for customer
Understand society values
Understand customer values
Choose customer segments
Select market values
Define customer benefits
Recognize competitive responses
Design products and services
3
4
Provide the value
for customer
Communicate the value
to customer
Design products and services
Process and procurement decisions
Manufacture and source
Manage branding , Price
Advertising and public relations
Direct marketing
Personal selling
Di t ib ti h l
5
6
Deliver the value
to customer
Measure and Evaluate Performance
Distribution channels
Market logistics
Sales promotion
Marketing planning
Implementing marketing decisions
Measuring performance
5. 5
PRODUCT / MARKET DEVELOPMENT GRID
PRODUCT
Present NEW
P MARKET PENETRATION PRODUCT DEVELOPMENT
M
A
R
K
r
e
s
e
n
t
-NEWSIZE
- VIP'SREBATEPROGRAM
- DISTRIBUTION(OUTLET) -NEWFLAVOR
- NO.OFSKUINOUTLET
- NEWBENEFIT
- LOYALTYPROGRAM - NEWPACKAGING
K
E
T
- NEWTARGETMARKET
- NEWUSAGE
N
E
W
MARKET DEVELOPMENT DIVERSIFICATION
- NEWCHANNELOF DISTRIBUTION
- SCHOOL,HEALTHCLUB,THEATRE
Channels
Communication channels
Distribution channels
Marketing channels
BANK
6. 6
A Marketing Channel
A Channel of DistributionA Channel of Distribution,
a group of interrelated
i n t e r m e d i a r i e s
which direct products to
c o n s u m e r s .
ช่องทางจัดจําหน่าย
โรงงาน ผู้บริโภค
โ ้ ้ โ
โรงงาน ค้าส่ง ค้าปลีก ผู้บริโภค
โ ้ ป ีค้าส่ง้ ่ ้ ิโ
โรงงาน ค้าปลีก ผู้บริโภค
โรงงาน คาปลีกคาสง
อิสระ
คาสง ผูบริโภค
โรงงาน เอเย่นต์ ค้าส่ง ค้าปลีก ผู้บริโภค
7. 7
Channel Objectives
A company’s channel objectives aim at what the companyp y j p y
seeks to accomplish through marketing channels.
Some general objectives can be:
Convenience to customers.
Effective target market coverage.
Cost-effective distribution.
Multichannel Marketing
•Some companies use several marketingp g
channels simultaneously to reach diverse target
markets.
•This system is also called hybrid channels or
multichannel.
8. 8
Why Multi-channel Marketing?
• 50% of customers will be using multiple50% of customers will be using multiple
channels
• Estimates are that multi-channel customers
spend up to three times as much as their single-
or two-channel counterparts.
• Businesses that effectively manage multi-Businesses that effectively manage multi
channeling marketing will gain customers who
are 25 to 50% more profitable than single
channel customers
How to plan for Multi-channel
FACTORS
1. Consumer Behavior
2. Product Characteristics
3. Market Characteristics
4. Environmental forces
(Competitions)(Competitions)
5. Organization’s objectives and
resources
10. 10
3.Market Characteristics
Mass
Segment
Niche
DISTRIBUTION LEVEL ( PENETRATION )
TOPICS FOCUSED LIMIT
ED
MEDIUM MASS
NO. OF SHOPS < 100 < 2,500 < 15,000 > 30,000
PRICE GAP MINOR MAJOR
COMPETITION
BETWEEN TRDAE
LOW HIGH
MARKET HYGIENE LOW HIGH
RELATIVE MARGIN
TO RETAILER
HIGH LOW
TRADE SEGMENT KEY A/C
CONCESSIONARES
SDO
STOCKIST
KEY A/C + MT
WHOLESALERS
CREDIT
OUTLETS
KEY A/C + MT
WHOLESALERS
CREDIT OUTLETS
CASH SALES
11. 11
Distribution Channels
Warehouse / DistributionWarehouse / Distribution
Agent *
(Yee-Pour)
Sub - Agents
(Sa-Pour)
Modern Trade
Traditional Trade Outlets (Total : 300,000)
END CONSUMER
OPEN vs CLOSED WHOLESALE SYSTEM
TOPICS OPEN CLOSED
NO. OF W/S MANY LIMITED
MARGIN NOT SECURED SECURED
GEO.
COVERAGE
FREE ALLOCATED
ECONOMICS
MODEL
PERFECT
COMPETITION
MONOPOLY
O CO O
PRICE
STRUCTURE
VARIABLE FIXED
COMPETITION
AMONG W/S
HIGH LOW
12. 12
Types of Retail Business for FMCG
in Thailand
Department Stores
•Central
•Robinson
•The Mall
•Siam Paragon
•Emporium
•Isetan
•Tokyo
•Tang Hua Seng
J
Hypermarket
•Tesco-Lotus
•Big C
•Carrefour
Specialty Stores
•B2S
•Supersports
•Powerbuy
•Powermall
•Homeworks
•Homepro
•Index
•ToysRus
Personal Care
or HBC Stores
•Watson’s
•Boots
•Guardian•Jusco
Supermarket
•Tops
•Home Fresh Mart
•Foodland
•Villa
•Tang Hua Seng
CVS + G-stores
•7-Eleven
•Family Mart
•Jiffy (Jet)
•Select (Shell)
•Tiger Mart (Esso)
Guardian
Warehouseclub
•Makro
Open Trade
•Pop & Mom Shop
•Minimart
E-Commerce คือ อะไร ?
• ภาษาไทยแปลว่า “พาณิชย์อิเล็กทรอนิกส์”
• การซื้อขาย ผ่านช่องทางอิเล็คโทรนิค (ออนไลน์) ไม่ว่าช่องทางไหนก็ตาม
โทรศัพท์, ทีวี, อินเตอร์เน็ต, Email, แฟกซ์, หรือ สื่ออิเล็กทรอนิกส์
13. 13
Why consumers shop and buy online
Trend in online shoppers and online retail
sales revenue in the United States
15. 15
Barrier To Entry
Competitive Advantage Methods
Supplier Supplier
Supplier
Firm Rival
pp
Decreased
Costs
Improved
Quality
Ties To
Ties To
Suppliers
Wholesale
Control Of
Distribution
Consumer
Consumer
Consumer
Consumer Consumer
Consumer
Consumer
Customers
Increased
Switching Costs
Innovation and
Differentiation
FACTORS
1. Consumer Behavior
2. Product Characteristics
3. Market Characteristics
4. Environmental forces
(Competitions)(Competitions)
5. Organization’s objectives and
resources
16. 16
• High-cost
•
•
•
s
Alternatives of Distribution Channel
•
•
Company sales force
Sellingcost
A B C D
Sales Volume
S
Low-cost
Channel Selection : TradeChannel Selection : Trade--OffsOffs
17. 17
Profitability Analysis
• Last Year
Sales Volume
S l V l
• This Year • Next Year
Sales Value
Market Share
NO. of SKUs
Space Share
NO. of Events
NO. of Participants
Promotion Budget
Cost / Carton
Contribution Profit
Channel, Volume, and Pricing
DIRECT
SALES
CASH
SALES
CREDIT
SALES
MT&
K/A
% SALES
CONT.
Price/Car.
NORMAL
Price/Cart.
Promotion
18. 18
Causes of Channel ConflictCauses of Channel Conflict
• Goal Incompatibility
• Difference in Perception
(e.g., Unclear Roles and
Rights)g )
• Dependence
Channel ConflictChannel Conflict
–– Vertical ConflictVertical Conflict
• Channel members at different levels find many reasons for
disputes
• Example: when retailers develop private brands to
compete with producers’ brands or when producers
establish their own retail outlets or WWW Sites
Horizontal ConflictHorizontal Conflict–– Horizontal ConflictHorizontal Conflict
• Most often, horizontal conflict causes sparks between
different types of marketing intermediaries that handle
similar products
• Sometimes results from disagreements among channel
members at the same level