Post on 23-Jun-2015
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PLACEMENT STRATEGY
BLENDED EDUCATION
PROFESSOR Antonio Fontanini
Marketing Strategy Planning Process
04/08/14
Customers Needs and other
Segmenting Dimensions
Company Mission, Objectives,
& Resources
Competitors Current & Prospective
S. W. O. T.
External Market Environment Technology, Political & Legal, Social & Cultural, Economic
Targeting & Segmentation
Positioning & Differentiation
Narrowing down to focused strategy with quantitative and qualitative screening criteria
Marketing Channels are sets of independent
organizations involved in the process of
making a product or service available for use
or consumption.
The importance of Channels
• Channels affect all other marketing decisions. • Channels cannot be changed in the short term. • Push vs pull strategy
Advantages of a distribution system
• Key external resource • Takes years to build • Significant corporate commitment to a large numbers of firms • Commitment to a set of policies that nourishes long term relationships
Caterpillar 50 Year worldwide leader in heavy
equipment for building and mining + 20B$ Revenues/ Year + 50% of his direct competitor 35% worldwide market share + 300 products to + 200 countries SUCCESS FORMULA High Quality products Flexible and Efficient Production Continuos Innovation Market Oriented Organization
Caterpillar 211 DEALERS WORLDWIDE Conocen el mercado local, a los clientes, dan todo
el servicio, acompañan al producto toda la vida “Compre la maquina, obtenga la empresa” PRINCIPLES • Caterpillar No compite con sus canales • 1 sola red mundial, con todos conectados:
desde cualquier sitio hay visibilidad total • Servicio y disponibilidad 7/24 Mine in Indonesia (Free Port Mc Moran). Biggest
open sky copper and gold 500 equipos (Cargadores, Tractores, Camiones de
240 Tons y 2000 HP): each > 1M$ Service is key.
Caterpillar Dealers rentability is guaranteed: Since 1925 +50 years same family; personal relationship Mid `80s: worldwide crisis >1B$ losses It did not loose any dealer Extraordinary support to deliveries: • 36 centros de distribución • 1,500 Instalaciones de servicios • 320,000 componentes en existencia • 84,000 artículos expedidos/día • Entrega de repuestos en 48 horas • 80% pedidos: entrega inmediata • 99% en el mismo día
Types of consume intermediaries
• Distributors • Wholesalers • Retailers • Department stores
Different kind of Channels • Direct Channels • Indirect Channels • Hybrid Channels – E.g.: IBM • For large accounts direct sales executives • For SMEs Telemarketing • For Consumers Retailers
CASO: G.E. APPLIANCES (Electrodomésticos) STATUS: Venta y saturación a los dealers para dejar menos espacios para otras marcas; presión para vender un gran stock: tenía problemas de fidelidad y competitividad. GE CUSTOMER´S NET: + 8,000 DEALERS Los dealers reciben on-line toda la información sobre modelos, precios, plazos de entrega, benchmarking con el mercado, .. Estado de los pedidos, inventario virtual, .. En las tiendas hay sólo modelos en exhibición (muestras) con teminales remotos para personalizarl los productos: 24 horas de plazo de entrega.
Different kind of Channels
Different kind of Channels Horizontal Channels (Lamar Saving Bank offices
in Safeway, McDonald´s in Wal Mart, Starbuck Coffee in Barnes & Nobles, …)
q Creation of contact points inside the channel
q “P&G” has 100 people at Wal Mart HW for process optimization
q “Western Publishing” created “Book´R Us” inside “Toys´R Us”: “golden little books”
q “Sara Lee” has “dealer teams” inside “Target” shops to optimize invenories and know customers
Manufacturer or producer
Consumer
Procter & Gamble
Del Monte Nissan Citibank
Wholesaler
Wholesaler
Retailer
Wholesaler
Retailer Retailer
Four Examples of Basic Channels of Distribution for Consumer Products
Why not going direct? • Many distributors lack the
financial resources to direct marketing • Producers who can establish
their own channels can find a higher return by increasing investment in their main business. • In some cases direct marketing
is simply not possible.
Channel functions • Gathers information on
customers, competitors and other external market data • Develop and disseminate
persuasive communication to stimulate purchases • Agreement on price and other
terms • Placing orders with
manufacturers
Channel functions • To finance inventories and the
market access • Assume responsibility of all risks
of the trade • Successive storage and
movement of products • Helps buyers in getting their
payments through • Oversee actual transfer of
ownership
INDUSTRY CHANNELS INDIVIDUAL ACCESS DIRECT Subsidiaries (commercial rep, local company) INDIRECT Agents, Distributors,Vars SHARED ACCESS Piggy-back Temporary Association Joint Ventures Trading Companies Licence/Technology Licencing FRANCHISING Multinacionals Off-Shores
producto precio comunicación distribución
VENTA DIRE C TA Bueno Bueno Bueno Suficiente
AG ENTE Suficiente Suficiente Malo Malo
IMPORTADOR Suficiente Muy malo Malo Malo
FIL IAL Bueno Bueno Bueno Bueno
AGRUPAC ION E XPORT Bueno Suficiente Suficiente Suficiente
J O INT VENTURE Bueno Suficiente Suficiente Suficiente
PIGGY -‐BAC K Suficiente Suficiente Regular Malo
CONTROL DEGREE IN THE MIX
MULTINATIONALS Geografical diversification of enterprises – Etnocentric/ Policentric/ Geocentric (global vision)
– Multiple bases
– Globalization of economic resources, organization, technologies, planning and managements
– M&A, Holding, Associates, Participates.
– Programas integrales de compra, producción, ventas, financiación y prestación de servicios a escala intl
– Programas de I+d de productos subvencionados con medios estatales en los países filiales
– Holding in “off shore” (tax heaven) countries
– Earnings fiscal management through “transfer pricing” technics, avoiding currency change risks
– Lobbying) at local governments.
Sigla Descripción
GRUPO E (Salida) EXW Ex Works
GRUPO F (Sin pago trans) FCA Free Carrier
FAS Free Along Ship
FOB Free On Board
GRUPO C (Con pago trans) CFR Cost and Freight
CIF Cost, Insurance and Freight
CPT Carriage Paid To
GRUPO D (Llegada) CIP Carriage and Insurance Paid to
DDU Delivered Duty Unpaid
DDP Delivered Duty Paid
INCOTERMS 2010
INCOTERMS
INCOTERM SIGLAS GTOS EN ORIGEN 1 2 3 4 5
GTOS INTERNAC. 6 7
GTOS EN DESTINO 8 9 10 11
M/T T/V
En Fábrica EXW V C C C C C C C C C C G S Franco al Costado del Buque Franco Transportista Franco A Bordo
FAS FCA FOB
V V V V C V V V V C V V V V V
C C C C C C
C C C C C C C C C C C C
M G M
S S S
Coste y Flete Transporte Pagado Hasta Coste, Seguro y Flete Transporte y Seguro Pagados
CFR CPT CIF CIP
V V V V V V V V V V V V V V V V V V V V
V C V C V V V V
C C C C C C C C C C C C C C C C
M G M G
S S S S
Entregada en Frontera Entregada Sobre Buque Entregada Sobre Muelle Entregada Derechos No Pagados Entregada Derechos Pagados
DAF DES DEQ DDU DDP
V V V V V V V V V V V V V V V V V V V V V V V V V
N N V V V V V V V V
C C C C C C C C V C C C V C V V V V V V
G M M G G
LL LL LL LL LL
GASTOS EN ORIGEN GTOS INTERNACIONALES GASTOS EN DESTINO 1. Embalaje y verificación 2. Recogida en fábrica/almacén 3. Transporte interior 4. Despacho exportación 5. Gastos de terminal
6. Transporte internacional 7. Seguro de transporte
8. Gastos de terminal 9. Despacho importación 10.Transporte interior 11.Entrega en fábrica/almacén
V: Vendedor/Exportador C: Comprador/Importador N: Negociable M/T: Modalidad de Transporte (G: General, M: Marítimo) T/V: Tipo de venta (S: a la salida, LL: a la llegada)
Channel Design Decisions 1. Analyzing customers desired service
output levels 2. Establishing objectives and
constraints 3. Identifying major channel
alternatives 4. Evaluating the major alternatives 5. Deciding your channel alternatives
(selective vs intensive distribution)
Channel Advantage is gained when you are
able to switch customers to lower-cost channels, with no loss
of sales or deterioration in service quality.
Channel Management Decisions
• Selecting Channel Members • Selecting Channel Levels (Accreditation) • Training Channel Members • Motivating Channel Members • Evaluating Channel Members
What kind of distribution?
• Exclusive (Rolls Royce, Rolex, Chanel) • Selective (General Electric) • Intensive (Colgate, Palmolive)
Terms and Responsibilities
• Rights and responsibilities are drawn up • Territorial rights are fixed • Pricing policies and conditions of sales are fixed
Channel modification • With time channels need to
change along with product as it get older in the PLC • Introduction – boutiques,
company showrooms • Growth – chain stores,
departmental stores • Maturity – Mass merchandisers • Decline – ‘sales stores’, discount
stores
Adding channels Advantages • Increased market coverage • Lower channel costs • More customised selling Disadvantages • Increases selling costs • Increases channel control • Breeds channel conflict
The Canon Example • Large and Public Companies: Direct Sales Force • SMEs: Specialized dealers in office equipment • Consumer, small companies and SCFW: Retailers
Recommendations
• Be sure that you are offering the right level of service with the right channel. • Be sure to define what is the target group for each channel. • Be sure to consider what the channel is good at
Handling the Channel conflict
Channel conflict • Interest of different business
interests do not necessarily coincide • Conflicts can occur at various
levels: vertical horizontal multichannel
Conflict causes
• Goal incompatibility • Differences in perception • Great dependence
Legal and ethical issues
• Exclusive dealings • Exclusive territories • Tying agreements • Dealer rights
Total Industry
Profit
+
-
$ 0
Market Introduction
Market Growth
Market Maturity
Sales Decline
Time
Total Industry
Sales
Placement Build Channels Maybe selective distribution
More of the same, but more channel outlets available
Move toward more intensive distribution
Find a way to reach loyal laggards
The Product Life Cycle
Retailing includes all activities involved in
selling goods or services directly to final consumers.
Types of Retailers • Self – service – discount stores (no
assistance) • Self – selection – dept. store
(assistance is available if required) • Limited service – counter sales men
are there • Full service – Co. showrooms.
Salesmen are available to explain, demonstrate, give technical help and promote the products
The target market will define
• Assortment of goods to be stocked • Store atmospherics and services • Pricing decision • Promotion decision • Place decision
Retail sales effectiveness
• No. of people passing by on an average day • % who enter the store (footfalls) • % entering who buy • Amount spent per buyer
Store Brands
• With the increase in size and buying strength of retailers, companies are forced to now customize products for them. • These are known as store brands. They may compete at the store with the company’s own brands.
What is wholesaling? • It includes all activities involved in selling goods and services for resale or business use. They are the intermediaries between manufacturers and retailers.
Characteristics of wholesalers • Less attention to promotion,
atmosphere and location • Transactions are usually large
and cover a wider geographical area • Could have different tax
implications, regulations,etc. because of its status as a wholesaler
Functions of a wholesaler
• Financing • Risk bearing • Market
information • Management
services and counselling
• Selling and promoting • Buying and
assortment building • Bulk breaking • Warehousing • Transportation
Market Logistics • Involves the planning,
implementing and controlling the physical flows of materials and final goods from point of origin to points of use to meet customer requirements at a profit. • It involves materials management,
distribution systems and IT systems interlinked with one another.
Logistics objective
• Getting the right goods at the right place at the right time for the least cost • ‘the last frontier for cost economies’.
Market Logistics decisions
• Order processing • Warehousing • Inventory • Transportation
Inventory vs Service levels
inventory
cost
Serv
ice
leve
l
100%
Reorder point should balance the risks of stockouts against costs of overstocking
Company needs to balance ordering costs vs inventory carrying costs
Logistics vs. Sales
• Objectives can be conflicting • Conflict resolution can be done by trading off costs vis -a- vis customer satisfaction
Gracias, gracias, gracias fontanini@learning.eoi.es