Matakuliah : J0504 - Strategi Pemasaran
Tahun
: 2009
Value Chain Strategy
Pertemuan 17
Buku 1 Hal: 318-343
Learning Objective
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Strategic role of value chain
Channel strategy
Managing the channel
International channels
Bina Nusantara
Strategic role of value chain (1)
Distribution functions
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Buying and selling
Assembly
Transportation
Financing
Processing and storage
Advertising and sales promotion
Pricing
Reduction of risk
Personal selling
Communications
Servicing and repairs
Value chain structures - consumer products
Producers
Supply Chains
Sales
Agents
Direct
Channel
Retailers
Wholesalers
Wholesalers
Retailers
Retailers
Consumers
Value chain structures - organizational products
Producers
Supply Chains
Sales
Agents
Direct
Channel
Distributors
Distributors
Sales
Agents
Distributors
Re-sellers
Organizational Customers
Strategic role of value chain (2)
• Channels for services
• Direct distribution by manufacturers
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Buyer considerations
Competitive considerations
Product characteristics
Financial and control considerations
Factors Favoring Distribution by Manufacturer
Profit margins
adequate to support
distribution
organization
Complete line
of products
Opportunity for
competitive
advantage
Distribution
by the
manufacturer
Purchases are
large and
infrequent
Small number of
geographically
concentrated
buyers
Rapidly changing
market environment
Early stages of
product life cycle
Complex product
application
Supporting
services are
required
Extensive
purchasing
process
Channel strategy (1)
• Types of channel
– Conventional channel
– Vertical marketing systems
• Ownership VMS
• Contractual VMS
• Administered VMS
• Relationship VMS
– Horizontal marketing systems
– Digital channels
• Product digitization
• Channel digitization
Channel strategy selection
1. Type of distribution channel
Conventional
Horizontal
marketing system
Vertical marketing system
Ownership
Contractual
Administered/
Relationship
2. Intensity of distribution
Intensive
Selective
3. Channel configuration
Exclusive
Channel strategy (2)
• Distribution intensity
– Intensive
– Exclusive
– Selective
• Channel configuration
– End-user considerations
– Product characteristics
– Manufacturer's capabilities and resources
– Required functions
– Availability and skills of intermediaries
Channel strategy (3)
• Channel maps
• Selecting the channel strategy
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Market access
Value-added competencies
Financial considerations
Flexibility and control considerations
Channel strategy evaluation
Illustrative channel map for heating units
Production =
100,000 units
Consumption =
100,000 units
Direct sales = 10,000 units
84,000 units
Independent
Distributors
Construction
SubContractors
42,000 units
42,000 units
Production
Of Central
Heating
Boilers
Small
Hardware
Retailers
5,000 units
Direct sales = 1,000 units
Large
Hardware
Retailers
40,000
units
75,000 units
Commercial
Construction
Companies
(85,000 units)
7,000
units
2,000
units
5,000 units
Domestic
Customers
(15,000 units)
Channel strategy (4)
• Changing channel strategy
– Channel strategy modification
– Channel migration
– Channel audit