MARKETING

CHANNEL
CONCEPTS

PRELIM Week 1
Product Issues
The Impact of Product Decisions
on Marketing Channel Management

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 The Channel Manager

▫ skilled at using the element of the marketing

mix
▫ understand how the other marketing mix
variables interface with the channel variable
▫ understand the implications of these interfaces

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 1
New Product Planning
and Development
 Five Possible
Channel Implications
of New Products

5
Inputs channel members provide into new product
planning

▫ soliciting ideas during the idea-generating

stage
▫ getting feedback from selected channel
members

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Assurance that new products will be acceptable
to the channel members

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New product’s fit into the present channel
members’ assortment

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 Need for special education or training

▫ if the channel members feel they lack

experience in handling the new product, steps
should be taken to allay these fears before
introducing the product

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Problems the new product may cause the channel
members

▫ applies to product problems that arise while the

product is still in the channel, in the member’s
inventory, as well as those that may appear after
the product is sold to the consumer

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 2
Product Life Cycle
Introductory Stage

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 Growth Stage

Two important challenges:

⬝ to ensure product availability is adequate
⬝ to carefully monitor channel member
actions with respect to competitive
products

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 Maturity Stage

Two strategic emphasis:

⬝ tactics such as extra trade discounts,
advertising allowances, etc.
⬝ possible changes in channel structure

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 Decline Stage

Two final channel implications:

⬝ marginal outlets phased out
⬝ adverse reaction of existing channel
members caused by dropping the product

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 3
Strategic Marketing
Management
 Product Differentiation
Two implications for channel managers:
⬝ select and help develop channel members
who “fit” the product’s image
⬝ provide retailers with support and assistance
needed

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 Product Positioning

Implications before implementation :

⬝ possible interfaces between the product
positioning strategy and where the product
will be displayed
⬝ retailer support

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 Product Line Expansion and Contraction

Points to consider:
⬝ incorporate channel member views
⬝ explain the rationale underlying product line
expansion or deletion strategies
⬝ provide adequate advance notice of
significant product line changes
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