Channel Strategies DB

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Unformatted text preview: Nadir, I would agree that the size of the company often determines which strategy to incorporate into the marketing of the product. Many smaller businesses rely on the distribution channel to market for them (push strategy) because of the expense or lack of resources to get involved in more direct marketing. Many small businesses do not have the expertise as well, so they rely heavily on the channel(s) they use to get their product to the consumer/end user. Even larger companies can find the task of distribution channels "daunting" as described in the article, Avoiding the Pitfalls of Channel Management. In that particular case it was with regard to expanding distribution channels on a global basis. Many companies may have existing channels they are comfortable with and are apprehensive about going outside their comfort zone to expand upon what they currently have in place. If relying on the distribution channel for marketing of the product, development of the relationship is a key element to establish trust if the distribution channel is going to be successful and of value for the manufacturer. Kristen Columbus, L. (2005/2006) Avoiding the Pitfalls of Channel Management, IEE Manufacturing Engineer, December/January 2005/06, Retrieved from Blackboard Academic Suite, Post University, BUS504, Unit 3 (Post is Unread) Thread: Post: Author: 17 of 23 Channel Strategies RE: Channel Strategies Kristen Hohmann Posted Date: Status: March 20, 2013 11:06 PM Published 5/22/13 10:29 AM Collection http://post.blackboard.com/webapps/discussionboard/do/messa... Professor and class, The common word that caught my attention as it appeared throughout the article, Avoiding the Pitfalls of Channel Management, written by Louis Columbus, is “trust”. For a marketing channel to be effective, trust must be established and continually maintained throughout the entire relationship. When a channel is established, each member of the channel will perform a function, should provide value, and will expect an economic return (Berry, T. 2013). Having an understanding and having trust in each and every piece of the channel, whether there is one intermediary or many intermediaries, is the key to its success. Developing a relationship alone isn’t enough, that relationship must be nurtured and trust must be maintained throughout the entire life of that relationship. When managing channels decisions must be made to follow a push or pull strategy. A push strategy is when the distribution channels are pushed to promote the product. Incentives (i.e. bonuses) may be offered to encourage the distribution channel to promote the product. A pull strategy is when advertising and promotional strategies are used that encourage consumers to buy your product or service. Offering promotional discounts (i.e. buy one get one half off). Kristen Berry, T. (2013) Channel marketing moves goods from producers to consumers, Mplans.com, Retrieved from: http://articles.mplans.com/channel-marketing-moves-goodsfrom-producers-to-consumers/#ixzz2O8cVzm4K MoreBusiness.com (2006), Push Marketing Versus Pull Marketing, Morebusiness.com, Retrieved from http://www.morebusiness.com/running_your_business/marketing /ah_pushpull.brc (Post is Unread) 18 of 23 5/22/13 10:29 AM Collection http://post.blackboard.com/webapps/discussionboard/do/messa... Thread: Post: Author: Channel Strategies RE: Channel Strategies Brian Hendrix Posted Date: Status: March 24, 2013 6:53 PM Published Angeleah, GE is about as multifaceted as a company as Berkshire Hathaway. I have noticed that even though we are under the umbrella of the parent company or "Grandpa", we don't have any cross promotions or any contact with other companies within the corporation. We are not required to use certain other companies and quite often use our competition's products when the need arises. It seems the approach is working for us as we are one of the top performing companies in the group. Brian (Post is Unread) Thread: Post: Author: Channel Strategies RE: Channel Strategies Brian Hendrix Posted Date: Status: March 24, 2013 6:46 PM Published Kristen, I am pretty familiar with the push strategy because the company I work for uses bonuses quite often. The majority of the income people in the company are performance based even if it the overall company's performance. The personnel in the sales force are not immune from this and apart from their commission pay also receive promotional incentives. Last quarter the company gave away twenty new Camaros to the top salesperson in each district. The recovery department (repossessed home resales) gave each member of the department a new iPad for Christmas just because they had a good year. The closest to a pull strategy I have seen recently was a double your tax return down payment campaign that was done recently. Brian (Post is Unread) Thread: Post: Author: Channel Strategies RE: Channel Strategies Brian Hendrix Posted Date: Status: March 24, 2013 6:41 PM Published Sara, Good point about channel members being the eyes and ears for the manufacturer. By being at the forefront of the market, they are an indespensabl...
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This note was uploaded on 02/08/2014 for the course BUS 504 taught by Professor Robinchase during the Fall '12 term at Post.

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