1. Distribution Channel Management
Week 2

2. Distribution Channel Management is Important because…
It is part of Company’s Value Chain Primary Activities to deliver added value to the customers
Part of organization’s relation to its customers, consumers, shoppers
It provides links to serve their each specific market

3. Conventional Route to Market
Customer
If the product is sold to individual shopper for their consumption, the Route to Market is represented in fig. (a). It is also known as a B2C business model
If the product is sold to another business or industries shopper for their operational purposes, the Route to Market is represented in fig. (b). It is also known as a B2B business model

4. Directing Marketing Activity towards different Channels
Managing Distribution process is creative marketing activity which acts as part of the process that persuade people to buy. It involves several aspects in Channel Management as follows…
Channel Choices
Directing Marketing Activity towards different Channels
Managing the Channels at unit level

5. What Channels will be used and what will not be used is defined by the channel ability to serve the company and the shopper
Who
The Shopper and Consumer demographics
What
Products or Services the company’s offering
When
Shopper shopping occasion
The channels selected can be mix across several suitable channels

6. Parties inside selected channel then will be the company’s CUSTOMER that should be supported with Marketing Activity in order to deliver successful sales performance
FMCG Sales Director
Head of Traditional Channel
Distributor Account Manager
Distributor
Retailers
Head of Modern Channel
Modern Channel Account Manager
Modern Retailer Account
Head of Horeca Channel
Horeca Account Manager
Horeca Distributor / Account
Executive
Middle Manager
First Line Manager
Customers

7. Now break up into your group…
Distribution Channels will not work just because the Company’s gave them Marketing Activity supports. The first line managers (Distributor Account Manager, Modern Channel Account Manager, etc) should Manage their Channel at unit level. From the next video, write down what jobs / tasks should be done by the Account Manager to manage their unit.

8. The company should make sure that their every channel and every part of the channel do the best possible job on their behalf. That’s why the company should manage the channel at unit level

9. Customers/Shoppers characteristics Product characteristics
The Successful Channel Management is defined by six factors that will determine how Channel aspects performs. The 6 factors are as follows…
Customers/Shoppers characteristics
Product characteristics
Distributor characteristics
Competitive characteristics
Company characteristics
Environmental characteristics

10. From Channel Management Book page 10-12
Define all six factors of Successful Channel Management with your own words as simple as you can
Give example for each factors explained
Notes:
You can use google translate or any dictionary if you want.
Find your own example
Time allocation for this task is 1 week
Everybody should submit their work next week (hard copy)
Everybody could finish the task within the time frame will get 5 back up points for their UTS result
If I, in one way or another, sensing “copy paste” activity, I’ll zero you out all. I don’t care who copying who!