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Marketing Channel (Channel
Design Framework, JIT,
Supplier collaboration and
Conflict)
Exam Tips On How To Answer Essay Questions
Include analysis, evaluation, and synthesis
types, function, importance, example, challenges
effectiveness, strength & weakness
intro, body, conclusion

1
...
It involves analyzing customer
needs, identifying channel partners, evaluating channel performance,
and making necessary adjustments to improve channel effectiveness
and efficiency
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Costs and benefits
One of the most important factors is analyzing the costs associated with
each potential channel and weighing them against the benefits they can
bring
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For example, selling through a
physical store might involve higher setup and operational costs compared to
an online store
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Customer expectation

Marketing Channel (Channel Design Framework, JIT, Supplier collaboration and Conflict)

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Understanding where your target customers expect to find your product can
guide your channel selection
...
On the
other hand, if they value personal interactions and expert advice, a brickand-mortar store might be more appropriate
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Alternative of channel
Evaluate the various options available for reaching your customers
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Each option
has its pros and cons in terms of control, reach, and cost
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Channel objective
Consider the objectives you have for your distribution channels
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For instance, if you're aiming for widespread availability,
using a network of retailers might be beneficial
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Channel Overlaps
In some cases, different channels might overlap or cannibalize each other's
sales
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You need to carefully
manage such overlaps to avoid confusing customers or undercutting your
own sales efforts
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Nature of product
The characteristics of your product can heavily influence your channel
choice
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7
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Direct sales can give you more control over the customer
experience, but it requires building your own sales team and infrastructure
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8
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This can help you better serve the specific
needs of different customer groups
...
Your product
‘Comey’ cosmetics is targeted to the elite rich Malaysian women
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What
are the factors that you would consider in the channel design?

2
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It involves
producing or delivering goods and services exactly when they are needed,
eliminating excess inventory and reducing costs associated with storage,
handling, and production
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Not be the higher quality but are chosen for their cost-effectiveness and
availability to ensure the smooth flow of production without excessive
inventory costs

3
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They should
effectively communicate with common understanding and clear goals, and their
relationships must be based on trust to successfully implement and execute supplier
collaboration
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Barriers to Supplier Collaboration:
Lack of Trust

Marketing Channel (Channel Design Framework, JIT, Supplier collaboration and Conflict)

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Information
Misaligned goals and objectives
Communication and cultural barriers
Resource constraints
Resistance to change
Power imbalance

How to improve supplier collaboration:
Select the right supplier/customer
Regularly meet with your supplier
Get supply chain visibility
Think long-term supplier collaboration
Open communication

Problems if channel members focus on their own profits only
high inventories - no one to depend
poor quality
low customer services
increased return

4
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These entities can include manufacturers, suppliers, distributors,
retailers, and even customers
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Why does conflict happen?
1
...
For instance, a manufacturer may want to reduce costs,
while a retailer may focus on maximizing sales and customer satisfaction
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2
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This can
lead to errors, delays, and ultimately, conflict between parties
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Power Imbalances: Power dynamics within the supply chain can contribute
to conflict
...

4
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5
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When
these risks materialize, they can trigger conflicts as entities try to shift blame
or find solutions
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Competitive Pressures: In situations where supply chain partners are also
competitors, there can be conflicts over market share, pricing, and market
strategies
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Quality and Performance Issues: Poor quality products, delays, and
deviations from agreed-upon standards can lead to conflict between parties
responsible for different stages of production
...
Lack of Alignment: When supply chain partners have different
understandings of roles, responsibilities, and expectations, it can lead to
disagreements and conflicts over who should do what
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Economic Factors: Economic pressures, such as cost-cutting initiatives or
demands for higher margins, can strain relationships and lead to conflict as
parties try to protect their interests
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Cultural and Organizational Differences: Different organizational cultures,
practices, and approaches to business can clash within the supply chain,
leading to misunderstandings and conflict
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In other words, it's a conflict between
entities that are at the same stage of the distribution process, such as
retailers competing with each other or manufacturers competing with
other manufacturers
...
For
example, if two retailers selling the same product are located in close
proximity, they might engage in price wars or promotional battles to
attract customers, leading to horizontal conflict
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These conflicts often arise
due to differences in goals, expectations, or power dynamics between
the levels
...
Such conflicting
objectives can lead to disputes and tensions
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This can occur when there
are disagreements not only between entities at the same level
(horizontal) but also between entities at different levels (vertical) within a
distribution channel
...
This combination of conflicts can
create complex challenges within the channel

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