Channel Management

2023. 11. 23.

MARKETING MANAGEMENT 1
Tamás Gyulavári
Conceptual framework of the measurement of marketing performance
Macro- and microenvironment

Marketing goals

Effectiveness
Efficiency
Customer reactions
Cognitive effects
- awareness
Market presence - image
- product supply - satisfaction Market Business
- prices - preference performance performance
- communication - WTP - customer - financial
- availability base performance
Behavioural effects - CLV - other value crated
- information search - turnover to the stakeholders
- trial - market share of organisation
- loyalty
- defection

Marketing efforts
Hubert-Gyulavári-Malota, 2012
Performance of other corporate functions 2
 The Process of Channel Design

Company Strategy Environment

Marketing Strategy

Channel Objectives
Channel Strategy
Channel Structure

Implementation

Measuring Performance

Redesign & Refine

3
Channel Structure

• Level of vertical integration

• Selectivity
• Type of channels included
• Managing the horizontal integrity of channels

4
Channel Structure - Level of vertical integration

Cons
• Focus
• Regulations

Pros
• Profitability
(Fast food chains –Pepsi/Coca)
• Securing markets
• Access to markets (Japan - Coca)
• Quality controll
• Information access
• Flexibility

5
 Channel Structure - Selectivity

Intensive
Selective
Exclusive

1000 TEA

6
 Channel Structure – Type of Intermediaries

Physical distribution
Sharing Cost of Distribution
Storage
Cost of Production Cost of Consumption
Financing
Cost of Distribution
Customer service
Pick-your-own Online
Pricing
Promotion
Taking risk

7
 Managing Horizontal Integration of Channels
DIFFERENTIATED HOLISTIC APPROACH
APPROACH
The basis of Enduring and permanent Context and purchase process
segmentation variables affecting channel
preference
(income, demography, attitude)
Target group Different segments via each The same customer in each
channel channel
Product/service Homogeneous within the target A great deal of overlap in the
group, meanwhile, as different offerings of channels but
for each channel containing unique offers and
as possible services
Brand May deploy different brands for The same across all channels
channels
Price Opportunity for significant price Maximum to a degree thought
differentiation fair by customers
Communication Different contents and style Efforts to tailor-made
across channels communication and as many
types of contacts as possible
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 Omnichannel Customers
„Customers who, with the intention of purchasing, initiate
interaction with the company through several channels.”

Omnichannel customers (initial research results)

▪ They spend 20-30% more
▪ They provide higher revenue and a greater
share of their spending to the company
▪ They buy more often, more items and in larger
amounts
The value of a customer who buys through three or
more channels is 1/3 more than a customer who buys
through two channels and 4 times more than a
customer who uses only one channel

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The challenges of a holistic
(omnichannel) approach

▪ Measurement; determining the contribution of

each channel (ROI, halo effect)
▪ Cross-channel customer service (e.g. handling
purchases and returns in different channels)
▪ Cross-channel process organization (tracking
orders, registering cross-promotions, etc.)
▪ Sortiment allocation
▪ Keeping the served customers in the system,
handling „free riders".
▪ GDPR
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 Where to search for information is at our company
Online Offline
Reducing the risk through
Switched to a competitor personal experience and
Online as a result of a price then buy in the competitor's
comparison channel at a lower price
Where to by level
product at the
competing After the more convenient
Visiting a competitor's store
company and faster online search,
due to a lack of stock or
he/she buys in the closest
Offline he/she is not satisfied with the
competitor's store because
service (not feeling that they
he/she considers the online
want to sell)
channel risky
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Key Success Factors of
Holistic Approach
▪ Comprehensive and sufficiently specified goal
definition
▪ Appropriately assessed resource
requirements
▪ Flexible and innovative corporate culture
▪ Well-chosen partners to replace missing skills
▪ Use of a common database in different
channels
▪ Cross-channel promotional activity that
reinforces each other
▪ Communication contacts with customers of as
many types as possible, sufficiently timed and
with the appropriate frequency
▪ Adequate level of automation 12
Köszönöm
a figyelmet!