channel design and gap analysis
TRANSCRIPT
Channel Design and Gap Analysis
Overview
The marketing channel challenge
involves…
1. Understanding gaps in your channel design.
2. Adjust or re-design
3. Monitor performance of channel members
FIVE STEP CHANNEL ANALYSIS
Step 1 - Segmentation
• Define and profile service output demands (SOD) by segment.
– Value added services performed by your
channel members
• Identify environmental characteristics and constraints
– Limited infrastructure, government constraints,
economic, technological
Step 2- Positioning
• Position yourself in the channel (know your strengths / weaknesses)
• Which segments are a good target (channel resources are limited)
– Segments must be profitable, accessible,
actionable and measurable
Step 3 - Targeting
• Knowing what segments to ignore in one’s channel design and where to apply managements effort.
• Focus on key segments that reap the profitable sales.
• Be aware of– Managerial bounds
– Environmental bounds
– Competitive benchmarks
Step 4 (a) and (b) – Establish new or refine
existing channels
• Gap analysis
– Demand side
– Supply side
Gap Analysis
• What gaps in the service outputs of the ideal,
existing, and management bounded
distribution systems should the firm try to
eliminate?
• Figure 7.3 identifies three situations that
require corrective action. Source: (Stern, Sturdivant and Getz, Accomplishing Marketing Channel Change: Paths and Pitfalls, 1987)
Figure 7.3 Gap Analysis in Distribution System Design
Management
Bounded
Distribution
System
Ideal
Distribution
System
Existing
Distribution
System
Situation A: Strategic Fit
Interpretation: Any distribution related problems result from poor execution,
not poor design of the system.
Necessary Actions: Sharpen performance; maintain existing system.
Figure 7.3 Gap Analysis in Distribution System Design
Management
Bounded
System
Existing
Distribution
System
Ideal
Distribution
System
Interpretation: Management has designed a system which reflects its needs,
but has given inadequate attention to customer needs.
Necessary Actions: Investigate validity of management constraints and
objectives, and analyse customer requirements and expectations.
Situation B: Partial Fit
Gap
Figure 7.3 Gap Analysis in Distribution System Design
Existing
Distribution
System
Management
Bounded
Distribution
System
Interpretation: End-user satisfaction can be improved by improving service
outputs.
Preferred Actions: Examine certain management criteria to assess the
possibility of bringing the existing systems even closer to the ideal distribution
system.
Situation C: Complete Misfit
Ideal
Distribution
System
Gap Gap
Step 5 – Channel Implementation
• Communicate changes and improvements
• Identifying power sources
• Identifying channel conflicts and resolve
• Coordinate, Control and manage relationships with channel partners.
Summary
• Its important to review your distribution channels
• Identify gaps and close them
• Monitor and control your relationships
• Conduct periodic gap analaysis
You are welcome to contact Nigel Bairstow at B2B
Whiteboard your source of B2B Asia / Pacific
marketing advice
http://www.linkedin.com/pub/nigel-bairstow/6/41b/726
http://twitter.com/#!/b2bwhiteboard