Channel Member Marketing Plan

Marketing plans can vary in complexity from fairly basic to very complex. There are several types of layers that may or may not exist, depending on the situation. Some of those important layers will be discussed in this report. Indeed, there are items to decide and decipher that include channel design strategy, exclusivity agreements and how best to handle the transportation and display of the product. When it comes to bringing the goods to a point of sale, this would include how the goods get there, who gets them there, who will state the items, when that will be done and how that will be done. While the individual steps to an exclusive retail sales arrangement, proper timing and management of resources and people is extremely important.

The scenario presented for this report is not terrible intricate or detailed. However, it is important to detail what is known and how to react to the same. First, there needs to be an identification of how the right channel members will be selected and how the product will get to the stores. This will feed into the next step, which is the proper and relevant design of a channel design strategy. There will be the need to motivate channel members so as to make the sale of this product a successful and efficient one. There will also be the identification of two pricing issues that will need to be dealt with. Finally, there will be a push promotional strategy as part of the sale of this product. That strategy will need to be cultivated and crafted.

Channel members in the marketing sphere vary in terms of what they do. However, they are all involved with the movement of a product and the time or money that goes into the same. Just a few functions that a channel member might do would include risk-taking, financing, physical distribution of good, negotiations, inventory management, contact management, promotions and so forth. For whatever task or tasks that a given channel member does for the exclusive marketing plan that is in question, there are certain expectations, metrics and needs that must be met. When it comes to risk-taking, one of things to understand is that some channel members are in a healthier state than others. Beyond that, the channel member that takes on one or more risks might be in a bit of a tough spot if the product they are moving does not sell. Thus, there needs to be an assurance (and proof) that the seller of the product has a solid plan to get the good s distributed. Conversely, the seller of the product needs to make sure that the distributor has the resources and plan to get the goods where they need to go and when they need to be there (Bhasin, 2016).

Financing, in many regards, is similar to risk-taking. Extending money before delivery of services or products is itself a risk. The money movement methods and the timing for amounts due and such need to be arranged for in advance. What amount shall be due and when it must be paid all has to be figured out in fine detail before anything is done. One or both of the parties in the agreement, that being the product seller and the channel members, need to make sure that they have the liquidity and financing to do the job as is expected. Channel members moving the goods have a right to expect to be paid on time and the company selling the goods and expecting the channel members to do their job have a right to expect that the merchandise will be moved as requested and required. For example, if the company mentioned in this report has an agreement with a distributor to pay half upon the order and half upon delivery of the goods to the stores, then the former needs to make sure they give the required down-payment and the latter needs to make sure that they follow the due dates and requirements related to the same to the letter. If either party breaches that agreement, then it can lead to late delivery, a refund being necessary and/or one or both parties going in a different direction for future orders and issues. In the case of both risk-taking and financing, it is always best to go with a firm that has proven their worth before. If that is not possible, for whatever reason, the use of references and background checks would be wise. Examples of the latter would include the Better Business Bureau (BBB), an organization that details and logs how well firms do when it comes to resolving complaints in a good-faith and complete manner (Bhasin, 2016).

Another important aspect of channel members and their duties is getting the goods to the store. The company that is dealing with the stores is ultimately the one working with the retail stores. However, channel members are responsible for delivering the goods to the stores on behalf of the product manufacturer. The goods need to get there on-time, in good condition and they need to be moved in the most efficient way possible. If any or all of that is bumbled, it can create a number of headaches for the product manufacturer. There are some situations where negotiations with the final points of sales are done by the channel members, and not the manufacturer. This might be unwise in this instance, but this can be an attractive option for a product that is in high demand and that the channel member knows will sell. This might be an option down the road for the product manufacturer in this case. However, it would be wise to keep tight reins and control on the sale of this product, given how important it is that the campaign go well. As the product is rolled out and achieves penetration and a good reputation, the reins of control can be extended to the channel member so long as certain performance metrics and requirements are met (Bhasin, 2016).

One thing that could be outsourced to a channel member much more easily would be contact management. The manufacturer can get the original array of people to keep in the loop. However, farming that out to a channel member, much like many firms do with accounting or tax services, is something that might save the company some money. If this is a function that is needed on a consistent basis, then a full-time hire by the manufacturer might be wise. However, if there will be a temporary swell in work hours needed, a contractual arrangement with a channel member that has relevant experience and expertise would probably be very lucrative for everyone involved. The same can be done for things like promotions and information management. The firms and companies that operate on the “front lines” are going to have more eyes and ears onsite. This mitigates the need for people at the manufacturer to be present. This does not mean that the manufacturer should not keep tabs on their channel members. However, outsourcing to reputable and trusted channel members can be a boon to a firm that does not have direct connections or offices in the target markets (Bhasin, 2016).

Strategic channel design is about balancing cost and the efficacy of the options and resources in question. With that said, the manufacturer should keep control and power over the mechanisms related to oversight and review. Even if the manufacturer does not themselves do everything, they should the ability to monitor and verify that everything is going properly. As is noted above, what can be outsourced and farmed out with compromising this command and control should be done in that manner. A project manager that is hired, commanded and controlled by the manufacturer will measure out the timeline, who will do what tasks, when those tasks are due and what the critical path shall be. One concern that should be present for the manufacturer as well as the channel members would be overtime and excessive hours. The use of employees who are working beyond forty hours a week, and this would include salary employees, should be limited as much as possible. This will keep costs down and it will keep people fresh. If the people on the front lines need to work long hours when final deployment is done, that would be fine. However, the aggregate hours for the week should be kept within normal ranges wherever possible. For channel members that insist on doing otherwise, they must agree to do so with the condition that quality will not suffer. They must also provide evidence that they can deliver on the promises they make, which should be assured per the reputation, reference and rating checks mentioned before. A fine line should be drawn between micromanaging the people and the situation and being too lackadaisical. So long as things are planned for well in advance, there should be little to no problem. Expanding the time frame and planning in advance will also allow for changes to the timeline if they are necessary. Doing things in advance will also greatly mitigate the need for scrambling with changes or the use of overtime (Anderson, Day & Rangan, 1997).

There are several pricing issues that the manufacturer and distributors will need to work out. The first is the overall price point as compared to the competition. The manufacturer would need to ensure that the final price point paid at the stores is competitive based on the target markets. For example, if the target market is discount-seekers, then a lower price point would be the best. If the goal is to have a price that is in the middle of the pack but is a “deal” based on the quality of the product versus the price paid, that would be the consideration to take when deciding a price. A second price issue to consider is how much the manufacturer will get as compared to what the distributor will get. Obviously, both parties need to make a profit based on what they are doing. What is sometimes tricky is figuring out the proper margins for all parties. Even so, any deal with external parties, including channel members, can go by industry norms and patterns. Regardless of the final arrangements, they should be specific and set in stone in advance. There should also be a firm explanation of how disputes and problems will be remedied. Incentives and other triggers can be put in place to make sure the distributor does a good job and “earns” any above-average pay. Indeed, there should be a high reward for good performance (Tsao, 2011).

A final aspect of the marketing strategy that is covered throughout this report would be the use of push and/or pull marketing strategies. The former will be used in this case, more so than the latter. Knowing the difference between the two is important. Indeed, a pull strategy relies more on advertising to get customers to buy a product. On the other hand, a push strategy relies more on sales and promotions at the point of sale. Given the manufacturer mentioned in this report is going to be using a channel design strategy, a push strategy would be much more appropriate. This can be done mostly by the channel members along with proper planning and management from the manufacturer. Examples of promotions and efforts would include free samples of the product, coupons and other such tools. Of course, the channel members that are in the stores when the product goes on sale, as well as the employees that work directly for the store, can be prepared to incentivize purchase or trying of the product. This, in turn, would help build demand for the product at the store and point of sale level without the need to spend money (or at least as much money) on advertising (Magloff, 2017).

Even with the “push” approach noted above, there is a way to build demand via advertising. However, it should be targeted specifically to the people that are most likely to buy the product. This would include people that already frequent the chain that offered the exclusivity rights. It would also include other people in the applicable geographical area that might not shop at that store already but that do not do so right now. With that being said, social media and Google can be used to target people in the applicable demographics and that reside (or stay) within the relevant cities and spots. If done the right way, there can be marketing that is efficient, targeted and well-performing. Google, for example, allows one to advertise to an specific area. For example, if the manufacturer wanted to advertise only to those that are within five miles of a store that will be selling the merchandise, the manufacturer could easily do so. They would only pay “per click” and they would be able to set a firm maximum budget as to what they want to spend, if that is an issue. Social media, as mentioned above, is another way to intricately and precisely target people that are of the right age and that live in the area. Facebook, Twitter and Instagram are all avenues to take. This social media and Google/Search Engine Optimization will obviously involve both the manufacturer itself as well as the channel members. It is important that the entire campaign is as seamless and crafted as possible. It should not be remotely obvious that more than one firm is involved with the promotion and sale of the product. The precision involved should range from the way the product is presented in the stores themselves to the dress and composure of the people that are selling and promoting the product. It would include support staff and personnel that will answer emails and calls regarding any issues that are had with the product. The website of the manufacturer should be presentable, polished and otherwise in sync what everything else that is part of the sale campaign, both visible and behind the scenes (Watson, 2017).