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Success Strategies in Channel Management

Success Strategies in Channel Management. Implementation - Making the Plan Work Effectively. Implementing, Measuring and Assessing the Value Exchange Plan. Key Components of the Plan. Implementing the Plan Structures for Implementation Effective communication.

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Success Strategies in Channel Management

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  1. Success Strategies in Channel Management Implementation - Making the Plan Work Effectively

  2. Implementing, Measuring and Assessing the Value Exchange Plan Key Components of the Plan Implementing the Plan Structures for Implementation Effective communication Controlling the Marketing Channels Program Measuring and Assessing Performance Financial Measures Non-Financial Measures Customer Service Measurement Dealing with Failure Strategic Tunnel Vision Perfectionism Success and Commitment

  3. The Plan The key components of the formal plan are as follows: Introduction and Overview General Organisation Description Product/Market Description Main Value Offer -Core products What markets are served What sector is the organisation in What is the current state of this market/industry? (overall assessment) Corporate Goals Corporate Objectives General Information The Marketing Audit Description of Your Organisations Activities Value offer/Market Description Detail of all Value offering (Products) in portfolio Detail of the market(s) served by the organisation Marketing Information - Research Implementing, Measuring and Assessing the Value Exchange Plan

  4. Market Research Marketing Information System: Marketing Planning system: Internal (Micro) Landscape – Situational Analyses Overview of Corporate Philosophies Analysis of Organisational Chart SWOT Analysisof Internal Environment (Strengths and Weaknesses, Opportunities and Threats) – SWOT Analysisof External Environment (Strengths and Weaknesses, Opportunities and Threats) External Landscape – Situational Analyses Economic/fiscal Landscape Political/regulatory/legal Landscape Social/cultural Landscape Technological Landscape Physical Environmental Issues Market Trends Competitive Analysis Industry structure Market characteristics Competition Industry profitability The Key Components of the Plan

  5. Customer/Client Analysis Sales - Market Share Analysis Total market Market Potential Analysis Profitability analysis Cost-effectiveness analysis Sales analysis The Marketing Strategy (What is our Competitive Edge) Growth strategies Defensive strategies Offensive strategies Target Segment(s) Profiles Who the market(s) is/are The Marketing Mix Product Plan (The Value Offer) New Products The Key Components of the Plan

  6. Pricing Plan Distribution (Distribution Plan – Delivering Value) Plan Logistics Channels of Distribution (Intermediaries) Pricing Plan Promotional (Communicating Value)Plan Personal Selling (Sales Activity) Plan Advertising Sales Promotion Consumer-Oriented Sales Promotion Trade Oriented Sales Promotion Direct Response Marketing (Direct Mail and Telemarketing), Sponsorship Activities and Packaging as it relates to its promotional aspect. Marketing Public Relations (Publicity) The Key Components of the Plan

  7. Sales Forecasts Market potential, Sales Potential, Marketing Programs Proposed Marketing Research/Market Intelligence Time-Tabling Activities Budgets Product development Costs Revenues (forecasted) Forecasted Profits Dollars, dollars per unit Return On Investment Versus organisation average Monitoring and Controls: Contingency Plans and Other Miscellaneous Documents Any Additional Organisation Development Planning Elements: The Key Components of the Plan

  8. Implementing the Plan • The actual implementation of the marketing activities, relies upon the ability of managers to plan, coordinate and motivate people throughout the organisation to undertake actions which will create value for the organisation and its stakeholders. • Implementation can be divided into the implementation management system and the monitoring system.

  9. No matter how well a plan is conceived and written, it is the implementation of the intended plan that is the critical element of success. An effective method of communicating the plan's objectives, strategies and tactics is necessary to convince or persuade employees to adopt the plan. This is part of Internal Marketing Communication. The early involvement of implementers and continuous communication of the plan contents to other people in the organisation are often regarded as sound techniques to achieve effective implementation. The process for establishing implementation can be listed as having three major stages. The Plan Approval Stage; this requires that the plan be given official approval by senior management. The second stage, is the actual implementation, and it management and control by the marketing managers in order for immediate and primary feedback as to what is happening in the marketplace during the plan implementation. The third stage of the process is the analysis of performance with the use of marketing information systems and procedures and the adoption of marketing audits. Implementation System

  10. What counts is results. Results do not occur until something happens, until it is implemented. Plans don't bring results by themselves and wont work without commitment to success. Structures for Implementation. Fast response and swift implementation calls for effective organisational structure. The traditional multi layer hierarchical structure is in all probability an outmoded concept. Results

  11. A flatter management structure allows everyone to get into the act. People are the engine which will power your strategy. The effective inclusion of everyone in ensuring that the strategy is successful is like running on all cylinders. Effective communication Senior management needs effective communication to enable faster response to changing circumstances. As John Le Carre once wrote, 'a desk is a dangerous place from which to view the world.' It therefore behoves management to get down to the coal face or to ensure that the perceptions from the market place get to them quickly and effectively. Effective Implementation

  12. The Key Messages Here Are: • - Listen to the people who do the work. • - Listen to the people who listen to the market. • - Listen directly to the market. • - Learn to see things as they are, get around and stay in touch. • - Make curiosity an organisational asset. Actively encourage people to talk to you. Remember listening is not a positive activity. To be effective it will be hard work. • Where it is not possible to spend enough time close to the action ensure that you stay in touch through building effective relationships and networks.

  13. No strategy is perfect. There is always the high probability that circumstances will change. It is also likely that failures will occur. No one problem has only one solution. There are not only a variety of bad solutions, but also a number of good solutions. It is always problematical whether there is ever only one best solution. Decisions are based on available information and changing circumstances as well as ability. What is essential is that action is taken. Dealing with Failure

  14. The higher the level of pressure the higher the likelihood that our concentration will narrow down to the problem confronting us. The pressure of time makes it difficult to recognise that there are a variety of options available for any problem. Perfectionism In the real, competitive world, there is seldom any opportunity to devise a perfect strategy. There is never going to be enough time to become perfect. The objective is to have a marginally better strategy than the competition. Strategic Tunnel Vision

  15. Success is any activity comes from the commitment of people to succeed. People succeed if they think they will. They will make something happen, often despite bad instructions or plans - if they believe they can. The essence of managerial control has four parts: 1. Statement of what an activity should accomplish - results, output, goals. (What should be.) Information gathered on progress against this plan. (What is.) 3. Prediction of the operation's ability to meet its objectives, given where we are now (What will be.) 4. Action to correct the deviation if deemed serious - and if action can be taken. (What to do.) Success and Commitment

  16. Success and Commitment • (1) define the activities and show the interrelationship between tasks, • (2) evaluate alternative tactics to get to market faster, • (3) establish responsibilities of various functional units, • (4) check progress at intervening durations against original schedules, • (5) forecast bottlenecks, • (6) re-plan and redesign to avoid bottlenecks, and • (7) assure quality while getting to market fast.

  17. Types of control that can be considered are: the sales force, manufacturing/operations and purchasing requirements (internal environment), and distributors, or channels of distribution (external environment) factors. The profitability control areas, such as the types of profit required for the marketing plan Control needs to be considered from the perspective of the personnel involved, in other words, the activities of the sales force and sales managers could be considered here, as well as the control over external people involved with the plan; for example, advertising and market research, the transportation division and so on. Controlling the Marketing Channels Program

  18. Measuring benefits and cost Is there a clear plan/objectives? Good Leadership? Marketing Culture? Divisional soundness of management Organisational structure? Channels Monitoring Approach Manager needs good monitoring skills. Monitoring is an understanding' of relationships and events central to executing marketing plans, especially strategies and programs. Usually the information needs of managers are dynamic while the procedures and systems installed by organisations tend to be static. Measuring and Assessing Performance

  19. Measuring and Assessing Performance • By monitoring performance against the growth target monthly, managers can see just how far they are ahead of or behind the target. If a couple of months into the plan, managers find sales are behind target, there is time for some serious thinking about what steps they can take to get back on track.

  20. Managers need to: understand the link between what they do and the bottom line; and understand how the bottom line is constructed. There are basically three sets of tools or approaches to measuring marketing's contribution to increasing value for the organisation. Financial measures: These are traditional accounting figures. Non-financial measures: Normally used in addition to the financial measures; metrics such as market share, measures of volume and customer satisfaction are examples. Combined approaches: These are more sophisticated and complex because they assess performance from a holistic perspective; for example, measuring brand value and conducting a marketing audit. How do organisations measure the performance contributed by marketing channels?

  21. Financial measures relating to marketing decisions are usually centred on the: costs incurred by the marketing decisions; sales revenue generated by those costs; inventory and logistics costs based on particular marketing campaigns – sometimes causing larger inventory holdings due to the failure of the campaigns. Trends Trends in the financial measures over a period of time can be most helpful in assessing current performance. Financial ratios, such as liquidity ratios (the ability to pay debts in the short-term) and profitability ratios (the capacity for financial stability), are also common marketing measures. Financial Measures

  22. There are many non-financial indicators of performance,. The most common are: those relating to sales in volume, unit or quantity terms; share of the markets for the different brands compared to competitors; customer satisfaction levels, including the number of complaints; buyer behaviour trends including communicating and brand awareness rates - - demand or rates of responses to the marketing effort, such as number of customer; customers request to form a strategic alliance. As with the financial measures, the trends, ratios and comparisons with past results or with competitors are used for non-financial measures. Non-Financial Measures

  23. The combination of financial and non-financial measurements appeals to management because it is seen as an equitable assessment process. There are other approaches to assessing performance but for our purposes we will discuss a brand value approach, a marketing audit approach and customer service measurement. Services - Measuring complaints An organisation's ability to process and understand customer service issues reflects its marketing orientation. The recording and gathering of complaints is one way organisations can understand their market places and plan better performance by providing enhanced value exchange mechanisms. Measurement (and subsequent effective action) of complaints is a source for improved customer service – and value. Combined Approaches

  24. Without measurement, customer service remains a subjective concept and any possibility of improvement remains a vague hope. To monitor customer service we must select an appropriate metric or measure, and set standards against which to evaluate the actual performance. . Customer Service Measurement The measure chosen must: provide an operational and objective view of the customer service element being monitored; and reflect the customer's perspective, that is, measure those service elements that the customer, not the supplier, believes delivers value.

  25. empirical or historical: it may be possible to experiment or use past experience to determine the acceptable level of performance; internally driven: system or organisational constraints may determine the level of performance that can be achieved. This is not the best way to determine standards; cost driven: the cost of achieving given service levels may determine the standard; competitor determined: an organisation may be willing at least to match the service being delivered by competitive organisations; customer determined: one of the best ways to decide the level of performance is to match that required by the customers. benchmarking: this approach is based on finding the best practitioners in the area being measured and to study and adapt the processes being used by the best. There are a number of approaches to setting standards:

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