The customer has escaped

Group No 2 Abhishek Kumar Jha (93002) Amba Prasad Tiwari (93007) Najmul Hoque (93032) Ravindra Kumar (93039) Siddharth Baghel (93053)

Where do you buy from? ‡ ‡ ‡ ‡ ‡ Mobile Phones Laptops/PC Air Tickets Watch ULIP Plan .

Where do you search for information? ‡ ‡ ‡ ‡ ‡ Internet Company retails stores Large showrooms Malls Company s Agent .

and nature of purchase. .How customer buys? Channel Need Recognition Tax Saving/Investment Search Internet / Customer Agent Evaluate Option Customer Agent/ Outside Agent/Online Purchase Outside Agent (5% commission earned ) Post Purchase Customer Agent Time and effort put in each step depends upon nature of product. perceived risk.

Problems Situation ‡ Stranded assets ± Highly Trained underused sales force ± Inventory dedicated to displays ‡ ‡ ‡ ‡ ‡ Channel Design Strategy (what to how) Segmentation v/s Consumer Behavior Distribution Problem (Sync among channels) Lack of generalization Cost No of Channel Trade off .

Building New Pathways Understanding Consumer Behavior ‡ Behavior based Categories Habitual Buyer High level deal seekers Variety-loving shoppers High.involvement Shoppers ‡ Perception Modification (avoid selective retention/selective exposure) ‡ Create Links between pathways ‡ Social Factors ± Opinion leaders ± Roles and Family Influences ± Reference Groups .

. skills. marketing risk taking capability. partners. investment patterns.Channel Selection ‡ Captive Channel (Staples) ± Provide strong incentive ± Bind activities in buying process to force customer to use designated pathway ‡ Open Channel (Toyota) ± Unbundling company s offer ± Deliver through channel most economical for customer * Selection depends upon assets.

Assessing Capabilities Criteria for designing market system for the company i) Determination of variables for devising most efficient channel ii) Company s inherent strength .

Aspects for Variable Selection ‡ ‡ ‡ ‡ Level of product and service integration Assortment Requirement Product availability Quality assurance of product .

Forms of Channel Strategy on the basis of Company s inherent strength ‡ Specialization in one phase of distribution Open Channel: Competitive advantage through product or process competence ‡ Coordination of information flow Comp. ‡ Exploiting Customer Relationship Focus on specialization in particular channel role . advantage through customer relationship Best suitable for undifferentiated competitors playing same channel roles ‡ Combining Several Channel roles Captive channel: deliver a set of activities more valuable than its constituent parts.

Organizational Aspect ‡ ‡ ‡ ‡ A Shared understanding Cross Channel Performance New management information Targeted Education .


Conclusion .

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