Analysis Of Going To Market

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Going to Market – Marketing channel - network via which firm goes to market. channel first must generate demand for a product and service and n fulfill that demand and provide for after-–sale service. Finally channel often serves as a useful function in transmitting feedback from custom. back to manufacturer. When a company thinks about going to market it must consider what each of functions will specifically entail and who will do m – manufacturer or a chosen partner - distributor or retailer. Two key issues in going to market are 1) designing network 2) managing network. – In short-term it means how to motivate each team member to do desired tasks. In longer term, it means determining to evolve and hold system toger in light of new products, to develop custom. base and how to use new communication technologies. Channel design –past 2 assumptions – 1) all custom.s in same way - no dual distribution 2) signed up a channel partner – baton pass. New Channel Design - Instead of a one-size-fits, baton pass mentality-company must break up “ market” into segments and “ marketing job” into its component pieces using concept that different mechanisms could be best way of accomplishing certain tasks for certain segments. first step -channel design ask a) What segments of market should considered and n b) for each segments individually, what tasks must be performed and what are feasible options for doing m. Moriarty and Moran set a process for designing hybrid systems in which different tasks are accomplished by different players. y broke demand generation down- four subtasks – Lead Generation; Lead qualification; Presale activity target custom., closing sale. ir terminology for or 2 channel tasks are Post sale Service and Ongoing account Management. 3 types Conflicts – “Type 1” Company sales force and distributors. Distributor may regard potential account as rightfully distributor’s to serve and resent loss in margin opportunity due company’s large custom.s directly. Conflict Area 2 - “Same type of entities in Channel Structure” – question of channel breadth;.Alternatives – “Exclusive Distribution” Specialty goods, “Selective Distribution” Shopping goods and “Intensive Distribution (convenience goods) :”Share of space” delivers share of market. Conflict Area 3- Vertical e.g Manufacturer & Distributor – wishes manufacturer would spend more time on Advertising
Darrell Rigby – Future of Shopping – decade after dotcom implosion, traditional retailers are lagging in ir embrace of digital technologies. To survive, y must pursue a strategy of Omni channel retailing—an integrated sales experience that melds dvantages of physical stores with information-rich experience of online shopping. Retailers face challenges in reaching this goal. Many traditional retailers aren’t technology- savvy. Few are adept at test-and-learn methodologies. y will need to recruit new kinds of talent. And y’ll need to move away from analog metrics like same-store sales and focus on measures such as return on Invested capital. Traditional retailers must also transform one big feature internet retailers lack—stores—from a liability into an asset. y must turn Shopping into an entertaining, exciting and emotionally engaging experience. Companies like Disney, Apple, and Jordan’s Furniture are leading way. Amazon’s five-year average return on investment is 17%, whereas traditional retailers average 6.5%. Meanwhile, traditional retailers are lagging badly. Online sales account for less than 2% of revenue at Walmart and Target. Nor are traditional retailers pioneering digital innovations in or channels, such as mobile shopping and call centers, or seamlessly integrating se technologies in ir most important channel—physical stores. Technophobic culture permeates many great retail organizations. ir IT systems are often old and clunky, and