Saturday 25 February 2012

Saturday night's thoughts about different distribution channels and communication channels for Company X

The channel of distribution is the Company X's marketing managers' bridge to the Qatarian market. Channel innovation represents a source of competitive advantage that separates Company X from market losers. The business marketer must ensure that the firm's channel is properly aligned to the needs of important market segments which the project group has previously found. At the same time, the Company X's marketers must also satisfy the needs of channel members, whose support is crucial to the success of business marketing strategy. One important need to be addressed is communication.


Various combination of intermediaries and direct selling may be employed in the business marketing channel. In fact, one manufacturer could use several options. The wide array of options reflects the many marketing tasks to be performed and the fact that many business marketers are creating unique channel systems to appeal to a wide variety of customer niches. As business markets evolve, new channel arrangements have to be formed to reach every one of the earlier identified segments.

Let's think about company called Xerox here. Even Xerox is offering totally different products than waste bins, they have employed interesting strategy which should be possibly thought also by Company X. So what Xerox has then done? Xerox's distributors cover the vast middle market. Moreover, small and medium-sized customer can purchase some Xerox systems and supplies online throught the Xerox Web page site. The firm has developed private extranets for its largest customers.

Thus having own sales force by Company is considered costly operation, the Company X could still think about having multi-channel approach. Company X can have distributor in the region, but also carry out direct marketing activities. To avoid channel conflict, these marketing activities can be done for distributor's benefit. Direct marketing activities can be done to approach for example architects. Activities can be direct mail (leading the reader into informative web page) and telemarketing (also leading the speaking partner into the web page). In this approach web will play important role for Company X. By following Xerox's example, web page can include important info for architects/planners who are hopefully including Company X's product to their plans. These informative pages can be protected by password. When architects' plans are followed by construction companies, the final sales cycle and invoicing can be run by local distributor. So on the other words, distributor will still do the personal selling for Company X.

Advertising supports personal selling. Advertising can provide information more effective than personal selling alone. Advertising messages should be created with the understanding that the potential buyer's perceptual process will influence receptivity to the message. The most effective appeal projects product benefits sought by the targeted buying influential. Finally, advertising effectiveness must be evaluated against the communication objectives established for the advertising campaign. The most cost-efficient approach for Company X is to use e-channel and e-tools. Trade shows are considerable expensive as thus not recommended in this stage. Company X can build all important info into the web, which can then  also be offered in printed material to distributor.

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