Marketing Channels - Chapter 9,10,11,12

Marketing Channels - Chapter 9,10,11,12 - Chapter 9:...

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Chapter 9: Motivating the Channel Members (pg. 270) McDonald’s Needs to motivate its franchisees to improve customer service: Can Hamburger U help? 2001, 11% customers dissatisfied. Top 5 complaints: rude employees, being out of happy meal toys, slow service, missing products/wrong order, dirty restaurants. Unhappy customers tell as many as 10 people Estimates $60,000 in lost sales per year Hamburger University advises – hiring the right people Channel management can be defines as the administration of existing channels to secure the cooperation of channel members in achieving the firm’s distribution objectives 1. channel management deals with existing channels that is, we are assuming that the channel structure(s) has already been designed and that all of the members have been selected 2. secure the cooperation of channel members. Implied in this is the notion that channel members do not automatically cooperate merely because they are members of the channel. Rather, administrative actions are necessary to secure their cooperation. 3. Distribution objectives. Statements describing the part that the distribution component of the marketing mix is expected to play in achieving the firm’s overall marketing objectives Motivation – actions taken by the manufacturer to foster channel member cooperation in implementing the manufacturer’s distribution objectives. Motivation management – three basic facets 1. finding out the needs and problems of channel members 2. offering support to the channel members that is consistent with the needs and problems 3. providing leadership through the effective use of power finding out the needs and problems of channel members the middleman (page 273) GM Approaches for learning about channel members needs and problems 1. research studies of channel members conducted by the manufacturer a. less than 1% of manufacturer’s research budget is spent on channel member research. Example of Loctite corporation – adhesive products 2. research studies by outside parties a. page 227 3. marketing channel audits a. gather data on how channel members perceive the manufacturer’s marketing program and its component parts, where the relationship is strong and weak, what is expected of the manufacturer to make the channel relationship viable and optimal
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i. the manufacturer may want to gather data from channel members on what their needs and problems are in areas such as 1. pricing policies, marins 2. extent and nature of product line 3. new services and their marketing development through promotion 4. servicing policies and procedures such as invoicing, order dating 5. sales force performance b. further, it should identify and define in detail the issue relevant to the manufacturer c. cross referencing i. whatever areas and issues are chosen for a particular marketing channel audit, ideally they should be cross tabulated or correlated as to kind of channel members, geographical location of channel members, sales volume levels achieved, and any other variables that might be relevant. d.
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Marketing Channels - Chapter 9,10,11,12 - Chapter 9:...

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