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multi channel marketing
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Channel Dynamics (Multi Channel Marketing):
รกฐานลกคา ดวยการบรหารชองทางรกฐานลกคา 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
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ความแตกตาง• งานการตลาด กบ งานขาย• งานการตลาด กบ งานขาย
• Channel Management เปนความรบผดชอบของใคร
What is Marketing Management?
Marketing management is theMarketing management is theart 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”.
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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 ? สนคาด ภาพพจนด ไมมทวางขาย ใครจะไดซอ
BRIDGE vs. BOAT to get products across a river.
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Promotion
DISTRIBUTION FUNCTION
Customers Consumers
Product Place Customers ConsumersCustomers Consumers
Price
Who will win the competition is depend on the whole Marketing Strategies including Place
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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
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4
Provide the valuefor customer
Communicate the valueto 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
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Deliver the valueto customer
Measure and Evaluate Performance
Distribution channels
Market logistics
Sales promotion
Marketing planningImplementing marketing decisionsMeasuring performance
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PRODUCT / MARKET DEVELOPMENT GRID
PRODUCTPresent NEW
P MARKET PENETRATION PRODUCT DEVELOPMENT
MARK
resent
-NEW SIZE
- VIP'S REBATE PROGRAM
- DISTRIBUTION (OUTLET) -NEW FLAVOR
- NO. OF SKU IN OUTLET
- NEW BENEFIT
- LOYALTY PROGRAM - NEW PACKAGING
KET
- NEW TARGET MARKET
- NEW USAGE
N
E
W
MARKET DEVELOPMENT DIVERSIFICATION
- NEW CHANNEL OF DISTRIBUTION
- SCHOOL,HEALTH CLUB, THEATRE
ChannelsCommunication channels
Distribution channels
Marketing channelsBANK
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A Marketing Channel
A Channel of DistributionA Channel of Distribution,
a g r o u p o f i n t e r r e l a t e d
i n t e r m e d i a r i e s
which direct products toc o n s u m e r s .
ชองทางจดจาหนาย
โรงงาน ผบรโภค
โ โ
โรงงาน คาสง คาปลก ผบรโภค
โ ป คาสง โ
โรงงาน คาปลก ผบรโภค
โรงงาน คาปลกคาสงอสระ
คาสง ผบรโภค
โรงงาน เอเยนต คาสง คาปลก ผบรโภค
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Channel Objectives
A company’s channel objectives aim at what the company p 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 marketing p g
channels simultaneously to reach diverse target
markets.
•This system is also called hybrid channels or
multichannel.
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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 multichanneling marketing will gain customers who are 25 to 50% more profitable than single channel customers
How to plan for Multi-channelFACTORS
1. Consumer Behavior2. Product Characteristics 3. Market Characteristics 4. Environmental forces
(Competitions)(Competitions)5. Organization’s objectives and
resources
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ConvenienceProducts
ShoppingProducts
2.Product Characteristics
Products
SpecialtyProducts
Products
UnsoughtProductsProducts Products
Distribution Level
• Exclusive distribution– when only one firm offers a product to customers is a
large geographic area
– provides the least amount of market coverage
• Selective distribution– expands coverage to multiple, but a very limited number
of, product providers
• Intensive distribution– where a product is distributed in as many locations
as is realistically feasible
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3.Market Characteristics
Mass
Segment
Niche
DISTRIBUTION LEVEL ( PENETRATION )
TOPICS FOCUSED LIMITED
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/CCONCESSIONARES
SDO
STOCKIST
KEY A/C + MTWHOLESALERS
CREDIT OUTLETS
KEY A/C + MT
WHOLESALERSCREDIT OUTLETS
CASH SALES
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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
MONOPOLYO CO O
PRICE STRUCTURE
VARIABLE FIXED
COMPETITION
AMONG W/S
HIGH LOW
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Types of Retail Business for FMCG in Thailand
Department Stores•Central•Robinson•The Mall•Siam Paragon•Emporium•Isetan•Tokyo•Tang Hua SengJ
Hypermarket•Tesco-Lotus•Big C•Carrefour
Specialty Stores•B2S•Supersports•Powerbuy•Powermall•Homeworks•Homepro•Index•ToysRus
Personal Careor 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 คอ อะไร ?
• ภาษาไทยแปลวา “พาณชยอเลกทรอนกส”• การซอขาย ผานชองทางอเลคโทรนค (ออนไลน) ไมวาชองทางไหนกตามโทรศพท, ทว, อนเตอรเนต, Email, แฟกซ, หรอ สออเลกทรอนกส
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Why consumers shop and buy online
Trend in online shoppers and online retail sales revenue in the United States
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The Multi-channel Method
FACTORS
1. Consumer Behavior2. Product Characteristics 3. Market Characteristics 4. Environmental forces
(Competitions)(Competitions)5. Organization’s objectives and
resources
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Barrier To EntryCompetitive Advantage Methods
Supplier Supplier
Supplier
Firm Rival
pp
DecreasedCosts
ImprovedQuality
Ties To
Ties ToSuppliers
Wholesale
Control OfDistribution
Consumer
Consumer
Consumer
Consumer Consumer
Consumer
Consumer
Customers
IncreasedSwitching Costs
Innovation andDifferentiation
FACTORS
1. Consumer Behavior2. Product Characteristics 3. Market Characteristics 4. Environmental forces
(Competitions)(Competitions)5. Organization’s objectives and
resources
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• High-cost••• s
Alternatives of Distribution Channel
••
Company sales force
Sel
lin
g co
st
A B C D
Sales Volume
S
Low-cost
Channel Selection : TradeChannel Selection : Trade--OffsOffs
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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 / CartonContribution Profit
Channel, Volume, and Pricing
DIRECT SALES
CASH SALES
CREDIT SALES
MT&
K/A
% SALES CONT.
Price/Car.
NORMAL
Price/Cart.
Promotion
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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
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Conventional channel
Members
ManufacturerManufacturer
Vertical marketing system
Members
Design
Make
Functions
Manufacturer
Wholesaler Wholesaler
Brand
Price
Promote
Buy
Stock
Retailer
Consumer
Retailer
Display
Sell
Deliver
Finance
Consumer
การเปลยนแปลงของการคาปลก
• การแขงขนของวงการคาปลก จะมแรงบบ ททาใหตองเปลยนแปลงอก อยางมากมาย และรนแรง
• จะเกดกตกาใหม, กฎใหม, บทบาทใหม, ความสมพนธใหม, และการคาใหมของทงโลก• ผคาปลกจะกลายเปนผผลต และลงทนสรางตราสนคาของตนเอง
ผคาปลกทมขนาดใหญเพยงพอ จะจดหาแหลงผลตสนคาทมราคาถกลง จากตางประเทศ แลวขายในประเทศ, ทองถน ทเขามความชานาญตางประเทศ แลวขายในประเทศ, ทองถน ทเขามความชานาญ
• ผผลต จะทาตวคลายผคาปลก เพราะผคาปลกตองการใหผผลตรบผดชอบในการบรหารสนคาคงคลง, พนทการขาย, วางแผน จนกระทงขายจนถงผบรโภคในหางฯ ผผลตจงตองพยายามขายไปยงผบรโภคโดยตรงเพอสรางความไดเปรยบทางธรกจ
