Chapter 7: Use marketing mix tools in distribution channel management
I. PRODUCT ISSUES IN DISTRIBUTION CHANNEL MANAGEMENT New product planning and channel management When commercializing a new product, businesses need to achieve a level of close cooperation and support from channel members. New product planning and channel management Issues that channel managers need to consider when commercializing new products Contribution of TVK members in new product development Content management Note Encourage channel members in new product development Channel managers need to pay attention to and satisfy the needs of channel members Encourage channel members in new product development Make necessary adjustments if channel member requirements are not met Encourage channel members in new product development Channel managers must "attack" channel members' perceptions to ensure goal achievement Match the new product with the channel member's existing products When deciding whether to sell a new productor not, the distributor will have to evaluate whether the productis suitable for selling its productline or productmix. Manufacturersolutions Inform channel members about new products How to use the product and its outstanding features Technical factors related to the product Inform channel members about new products Services included with the product New product selling skills Manufacturer's guarantees… Support channel members to sell new products Activities before launching new products Support activities Manage distribution channels according to the product life cycle Introductory stage Manage distribution channels according to the product life cycle Growth stage Manage distribution channels according to the product life cycle Saturation stage Manage distribution channels according to the product life cycle Depression stage Manage distribution channels according to the product life cycle Promoting the role of channel members in product management II. Determine the price in the distribution channel Structure of the pricing system in distribution channel Principles for developing pricing strategies in distribution channel Ensure each channel members receives revenue greater than operating costs; The discount of each channel members is different so it is different; Structure of the pricing system in distribution channel Principles for developing pricing strategies in distribution channel Consider discounts on competing brands; Different distribution work division -different discounts; Structure of the pricing system in the distribution channel Principles for developing pricing strategies in distribution channels Conventional discount level; Differences in discount levels between products in the same manufacturer's category; Structure of the pricing system in the distribution channel Principles for developing pricing strategies in distribution channels Price points –“price reference” levels; Product and pricing changes. Other issues of pricing in distribution channels Control pricing within the channel Monitor channel members' reactions to changes in pricing policies Other issues of pricing in distribution channels Price increase process in the channel Use incentive pricing in the channel III. Mixed promotion in distribution channels Strategy for promoting cooperation among channel members Concept Notes Short-term programs Push strategy in distribution channels Training programs aim to improve the operational capabilities of channel member's sales force. Determine sales targets and bonus levels for achieving and exceeding targets Push strategy in distribution channels Sales by propaganda: propaganda, product introduction, sales support to customers of channel members. Trade fairs Chapter 8: Logictics and material management