To remove conflict is major challenge for conflict management. First of all, concentrate all dealers on subordinate goals of company. If there is big confliction between company and dealers, then company can take some meeting with dealers and agree them by giving positive arguments.
* Diplomacy :- A person goes to dealer and resolve the confliction
* Mediation :- Solve problem by expert of third party.
* Arbitration :- Agreement between two party by giving argument and confliction by arbitrator.
Showing posts with label marketing. Show all posts
Showing posts with label marketing. Show all posts
Saturday, September 4, 2010
Conflict Management
Conflict management is the process to reduce the problems of channel of distribution by solving them effective ways.
Main conflicts
Suppose company wants to achieve rapid market. In this case fix low price policy. But all dealers are seeing short run high profit. So, they are charging high profit margin and products are not sold easily by dealers. It will create confliction between dealers and company
Main conflicts
Suppose company wants to achieve rapid market. In this case fix low price policy. But all dealers are seeing short run high profit. So, they are charging high profit margin and products are not sold easily by dealers. It will create confliction between dealers and company
Types of Marketing Channels
A. Conventional Channel or Non- Integrated Channel
1. Manufacturer to Consumer
In this channel there is no intermediary. Manufacturer makes the goods and directly distributes to consumers.
2. Manufacturer to Retailer to Consumer
Retailer is the intermediary between manufacturer and consumer. He purchases goods from manufacturer and sells to consumer.
3. Manufacturer to Wholesaler to Retailer to Consumer
In this channel, there are two option, one is wholesaler and other is retailer. Wholesaler buys large scale and sells to retailer and the retailer sells to consumer.
4. Manufacturer to Wholesaler to Consumer
Consumer can buy easily and directly from wholesaler. So, in this channel there is only one intermediary and he is wholesaler.
5. Manufacturer to agent to wholesaler to retailer to consumer
B. Integrated Channel or Non conventional channels
Integrated channel are modern channel for distribution of goods. These channel can be divided into two parts.
1. Vertical Channel
Vertical channel is that corporate channel which are useful for the flow of products which are capital nature. In this, if one company contracts with other manufacturers who will convert the capital product into most usable shape and sell it to the dealers. Then it will be vertical channel.
2. Horizontal Channel
Two companies join together for marketing of any product for reducing competition and excess capacity.
1. Manufacturer to Consumer
In this channel there is no intermediary. Manufacturer makes the goods and directly distributes to consumers.
2. Manufacturer to Retailer to Consumer
Retailer is the intermediary between manufacturer and consumer. He purchases goods from manufacturer and sells to consumer.
3. Manufacturer to Wholesaler to Retailer to Consumer
In this channel, there are two option, one is wholesaler and other is retailer. Wholesaler buys large scale and sells to retailer and the retailer sells to consumer.
4. Manufacturer to Wholesaler to Consumer
Consumer can buy easily and directly from wholesaler. So, in this channel there is only one intermediary and he is wholesaler.
5. Manufacturer to agent to wholesaler to retailer to consumer
B. Integrated Channel or Non conventional channels
Integrated channel are modern channel for distribution of goods. These channel can be divided into two parts.
1. Vertical Channel
Vertical channel is that corporate channel which are useful for the flow of products which are capital nature. In this, if one company contracts with other manufacturers who will convert the capital product into most usable shape and sell it to the dealers. Then it will be vertical channel.
2. Horizontal Channel
Two companies join together for marketing of any product for reducing competition and excess capacity.
Monday, June 14, 2010
Channel of Distribution
Channel of distribution are the intermediaries which transfer goods from producers to consumers. Thus marketing channel are useful for proper distribution of goods and services. Following are main principles which apply on the channel of distribution.
1. The principle of minimum total cost of transaction :
Suppose, if goods are transferred to direct, the cost of transferring goods is Rs. 10.
But if it is purchased by channel of distribution, its cost is Rs. 2, it will be useful to reduce the cost of producers.
2. The principle of smoothness gap in assortment and sorting :
The intermediaries takes the goods and save it in store and sells it when consumer needs the goods. So, manufacturing needs intermediaries.
3. The principle of searching :
Channel of distribution creates the market of specific goods where consumer can search and buy.
4. Personal Touch
The channel of distribution close to the consumer, so they can know the needs of consumer and solve the problems of consumers.
1. The principle of minimum total cost of transaction :
Suppose, if goods are transferred to direct, the cost of transferring goods is Rs. 10.
But if it is purchased by channel of distribution, its cost is Rs. 2, it will be useful to reduce the cost of producers.
2. The principle of smoothness gap in assortment and sorting :
The intermediaries takes the goods and save it in store and sells it when consumer needs the goods. So, manufacturing needs intermediaries.
3. The principle of searching :
Channel of distribution creates the market of specific goods where consumer can search and buy.
4. Personal Touch
The channel of distribution close to the consumer, so they can know the needs of consumer and solve the problems of consumers.
Sunday, June 13, 2010
Price Setting Process
When a company develops a product, it is very necessary to set its specific price. But there are many factors which affect its setting which we can show following steps of its process.
1st Step : Selecting the Price Objectives :
We all know the price setting is the major part of marketing policy and one of P4 of marketing mix. So, it is the first in which you have to select the price object for setting it. It may be
a) Survival the product in market :
Company thinks that his product is new and for creating its position in market, company should take minimum price from its customers.
b) Maximum profit objective :
If company wants to earn maximum profit, the company can set high price under price skimming. Company thinks that if it will fix high price, no competitor faces it.
c) High market share objective :
Company's object is to increase sale. So, it will determine low price than competitors.
2nd Step : Determining the Demand :
Main aim of taking second step is to check whether our set price is best for increasing demand or not. In this step, we takes following decisions
a) Create the demand curve and check the trend :
With past records of our company's product price and past sales company can create demand curve, it shows the effect of changing price on demand of customer. The company can take the help of economist which they can explain its technical explanation. But with this, company can know whether company's price are creating bad effect on demand or good effect on demand.
b) Demand Elasticity
With this, company can estimate about how much demand is effected with increasing or decreasing the price.
3rd Step : Estimate the Costs :
For determination the price of product company should estimate the cost of product.
I) Calculate variable and fixed cost :
Fixed cost = Electricity + salary bill etc
variable cost = raw material cost + labour cost + other expenses etc.
II) Calculate differential cost in differential market :
Use activity base costing system if company sells product different time period.
III) Target Costing :
This is japan's technique
at what price consumer wants the product xxxx
Less margin = xxxx
-------------------------------------------------
Estimated price = xxxx
--------------------------------------------------
Cost must be less than estimated price
IV) Also estimate competitor's price:
4th Step : Selecting a Good Price Method :
a) Markup pricing :
Total cost price xxxx
Add % Margin on sale xxxx
----------------------------
Sale price xxxx
----------------------------
b) Perceived value price :
it is fixed on the basis of cost of market mix and margin
( product cost + advertising cost + placement cost ) + margin = fix price
c) Value Price :
Low price of quality product than competitors.
6th Step : Select the Final Price
After analysis of above five steps, marketer selects the final price of a new product.
1st Step : Selecting the Price Objectives :
We all know the price setting is the major part of marketing policy and one of P4 of marketing mix. So, it is the first in which you have to select the price object for setting it. It may be
a) Survival the product in market :
Company thinks that his product is new and for creating its position in market, company should take minimum price from its customers.
b) Maximum profit objective :
If company wants to earn maximum profit, the company can set high price under price skimming. Company thinks that if it will fix high price, no competitor faces it.
c) High market share objective :
Company's object is to increase sale. So, it will determine low price than competitors.
2nd Step : Determining the Demand :
Main aim of taking second step is to check whether our set price is best for increasing demand or not. In this step, we takes following decisions
a) Create the demand curve and check the trend :
With past records of our company's product price and past sales company can create demand curve, it shows the effect of changing price on demand of customer. The company can take the help of economist which they can explain its technical explanation. But with this, company can know whether company's price are creating bad effect on demand or good effect on demand.
b) Demand Elasticity
With this, company can estimate about how much demand is effected with increasing or decreasing the price.
3rd Step : Estimate the Costs :
For determination the price of product company should estimate the cost of product.
I) Calculate variable and fixed cost :
Fixed cost = Electricity + salary bill etc
variable cost = raw material cost + labour cost + other expenses etc.
II) Calculate differential cost in differential market :
Use activity base costing system if company sells product different time period.
III) Target Costing :
This is japan's technique
at what price consumer wants the product xxxx
Less margin = xxxx
-------------------------------------------------
Estimated price = xxxx
--------------------------------------------------
Cost must be less than estimated price
IV) Also estimate competitor's price:
4th Step : Selecting a Good Price Method :
a) Markup pricing :
Total cost price xxxx
Add % Margin on sale xxxx
----------------------------
Sale price xxxx
----------------------------
b) Perceived value price :
it is fixed on the basis of cost of market mix and margin
( product cost + advertising cost + placement cost ) + margin = fix price
c) Value Price :
Low price of quality product than competitors.
6th Step : Select the Final Price
After analysis of above five steps, marketer selects the final price of a new product.
Monday, May 10, 2010
What are Brand and branding? What are the Main Strategies of Its?
Definition of Brand of Company
Brand means name, symbol or design of the product of company. It creates difference of one company's product with other competitor company's product.
Definition of Branding of Company
Branding is technique in which company provides the name and design to each product for creating a special identity. It is helpful for consumer to identify special quality product or products in market.
Strategies of Branding of Company
Following are the main branding strategy which can be used for making and developing of new brand.
1. Brand Positioning Strategy
Brand positioning means bring the brand name of company in mind of customer. When a customer goes to market and he or she should demand of specific product. It means company is successful to position the brand in the mind of consumer. Company must be careful while positioning the brand.
a) It must not be copied from other brand.
b) Company's brand shows the benefits of products.
c) It simply convey the idea of belief and values of company.
2. Brand Name Strategy
You often see that one company's brand name are easily copied due to weakness of brand selection. For example YouTube.com video site's brand name has been copied by many other site like utube.com etc.
So be careful when you are creating the name of brand.
a) It should tell the quality of product.
b) It should be easily to pronounce, recognize and remember.
c) It should easily be translated.
d) It should be capable for legal protection.
3. Brand Sponsorship
a) National brand
Sometime, a company can spend money for marketing of company brand as nation or international basis.
b) Middle men's brand
It is private brand which is created by middlemen.
c) Licensing
Sometime, company can take the brand of other company on license basis for increasing sale.
d) Co-brand
Sometime, company can contract with other company and mix other company brand as co-brand with his products brand and sell after this.
e) Takeover the brand
Google takeover the YouTube, so, its brand is also taken over by google.
4. Brand Development
a) Main name of brand + one more line which shows the quality of product
b) Use the same famous brand in other products.
c) Multi brand - Two or more name brand of same product.
5. Brand Management
a) Brand Equity
For brand management, management calculates the estimated value of brand. It shows as brand equity. It is an asset of company. Suppose, Lux, company creates lux brand equity fund with Rs. 9000000 and utilizes it for advertising, now its brand has becomes famous. Company can calculate its estimated value and try to protect it by opening brand asset management team.
Brand means name, symbol or design of the product of company. It creates difference of one company's product with other competitor company's product.
Definition of Branding of Company
Branding is technique in which company provides the name and design to each product for creating a special identity. It is helpful for consumer to identify special quality product or products in market.
Strategies of Branding of Company
Following are the main branding strategy which can be used for making and developing of new brand.
1. Brand Positioning Strategy
Brand positioning means bring the brand name of company in mind of customer. When a customer goes to market and he or she should demand of specific product. It means company is successful to position the brand in the mind of consumer. Company must be careful while positioning the brand.
a) It must not be copied from other brand.
b) Company's brand shows the benefits of products.
c) It simply convey the idea of belief and values of company.
2. Brand Name Strategy
You often see that one company's brand name are easily copied due to weakness of brand selection. For example YouTube.com video site's brand name has been copied by many other site like utube.com etc.
So be careful when you are creating the name of brand.
a) It should tell the quality of product.
b) It should be easily to pronounce, recognize and remember.
c) It should easily be translated.
d) It should be capable for legal protection.
3. Brand Sponsorship
a) National brand
Sometime, a company can spend money for marketing of company brand as nation or international basis.
b) Middle men's brand
It is private brand which is created by middlemen.
c) Licensing
Sometime, company can take the brand of other company on license basis for increasing sale.
d) Co-brand
Sometime, company can contract with other company and mix other company brand as co-brand with his products brand and sell after this.
e) Takeover the brand
Google takeover the YouTube, so, its brand is also taken over by google.
4. Brand Development
a) Main name of brand + one more line which shows the quality of product
b) Use the same famous brand in other products.
c) Multi brand - Two or more name brand of same product.
5. Brand Management
a) Brand Equity
For brand management, management calculates the estimated value of brand. It shows as brand equity. It is an asset of company. Suppose, Lux, company creates lux brand equity fund with Rs. 9000000 and utilizes it for advertising, now its brand has becomes famous. Company can calculate its estimated value and try to protect it by opening brand asset management team.
Sunday, May 9, 2010
What is Product Mix?
Product mix is the set or group of products which a particular company offers to public. Product mix is very helpful for taking advantage one product brand benefit for selling other product. For example:
Godrej Agrovet division has following product mix:
a) animal feeds
b) agricultural inputs
c) horticulture
d) tissue culture
e) retailing
Godrej Agrovet division has following product mix:
a) animal feeds
b) agricultural inputs
c) horticulture
d) tissue culture
e) retailing
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