Nowaday, products and services must go throught multiple marketing channels before to approach enduser. So a marketing channel strategy will help design and manage overall channel structure specifically and efficently. Firstly, the understanding and managing sales channel critical is extremely to most businesses. Because of total sales through sales channels (e.g., retailers, wholesaler) occupies one third of GDP. Secondly, the channels help the manufacturers connect and link to endusers. If marketing channel strategies is not effective, the manufacturer’s products or services will limit reach and lack of attractiveness to buyer. Thirdly, when customers are taked better they will be satisfied and tend to be loyal to that brand. Therefore channel experience determines people’s perceptions of the manufacturer’s brand image and thus enduser satisfaction.
Marketing Strategy Chapter (Offerings) Marketing Principle #3 All Competitors React Managing Offering-based Sustainable Competitive Advantage © Palmatier, 2017, Marketing Strategy, Palgrave ISBN: 9781137526236 Agenda Introduction Offering and Innovation Strategies Developing Innovative Offerings Repositioning and Disruptive Innovations Conjoint Analysis Launching and Diffusing Innovation Strategies Psychological, People, and Products Factors Bass Diffusion Model Managing Offering-Based Sustainable Competitive Advantages Steps to Building Offering Equity Research Approaches to Designing and Launching New Offerings Takeaways © Palmatier, 2017, Marketing Strategy, Palgrave ISBN: 9781137526236 Developing an Innovative Offering is Critical to Many Firms’ SCA GE is pursuing 100 “imagination breakthrough” projects to drive growth “Innovation is the only way that Microsoft can keep customers happy and competition at bay” (Ballmer) Today, innovation is the number one strategic priority at 40% of companies versus 19% in 2005 (BCG) 86% of senior managers believe that “innovation is more important than cost reduction for long-term success” (Bain) However: short-term business pressures often undermines innovation CEOs want returns from marketing in 6-12 months Resources taken from long-term initiatives to hit short-term targets Accounting practices for market-based assets impact decisions © Palmatier, 2017, Marketing Strategy, Palgrave ISBN: 9781137526236 3 Innovation Offering Innovative new offerings help firms build and maintain SCA and barriers to the competitive attacks that arise because competitors continually react to a firm’s success (MP#3) Offering is a purposely broad term that captures both tangible products and intangible services provided by firms Most offerings must be augmented by and linked to brands and relationships to ensure the firm’s SCA, because it generally is relatively easy for competitors to copy offerings, given enough time and money © Palmatier, 2017, Marketing Strategy, Palgrave ISBN: 9781137526236 Example: Dell (US) Dell operates in a technology space, but perhaps its most compelling innovation has been the ordering and logistics processes that it introduced in the market Building-to-order “semi-custom” computer products and selling them directly to consumers online was radical when it first appeared Dell’s SCA did not depend on its design or manufacturing competencies; Dell even outsourced the manufacturing Rather, the SCA came from an offering in which it built computers to order, sold them online, and significantly cut costs by avoiding the expenditures associated with maintaining storefronts and inventory or suffering obsoletion costs © Palmatier, 2017, Marketing Strategy, Palgrave ISBN: 9781137526236 What Is Innovation? Innovation is the “creation of substantial new value for customers and the firm by creatively changing one or more dimensions of the business” Key Aspects of Innovation Broader than product or technology innovation Must generate new value for customer and seller Involves change leading to differentiation and SCA How did Starbucks, Dell, and IPod create value and SCA? © Palmatier, 2017, Marketing Strategy, Palgrave ISBN: 9781137526236 See 12 Different Ways for Companies to Innovate (Sawhney, Wolcott, and Arroniz) Many Aspects of the Offering Can be Innovated There are many different ways a firm can innovate; it helps define the innovation space according to what, who, how, and where aspects Change what the firm offers, in line with a traditional view of new product or service innovation Changing who the customer is represents another route that involves innovations related to customers, experiences, and value capture Changing how you sell to customers pertains to the processes, organizations, and supply chains that a firm uses Changing where to sell to customers comprises presence, networking, and brand innovations Innovation Rader Captures many different ways a firm can innovate; helps define the innovation space according to what, who, how, and where © Palmatier, 2017, Marketing Strategy, Palgrave ISBN: 9781137526236 Innovation Radar Brand Leverage E R the brand E H into new W Networking markets Interconnections as a strength W HA T Develop new products or services Platform Use interchangeable designs Presence Solutions Change where products are sold Provide a total solution Organization Value capture Change firm structure Supply chain Changing what the firm offers Change how customers pay Experience Change Change supply customer chain Processes Customer interactions Change Change customers to operating target processes OW H Changing how to sell to customers Offering W HO Changing where to sell to customers Changing who the customer is Adapted from Sawhney, M., Wolcott, R.C., & Arroniz, I (2006), “The 12 Different Ways for Companies to Innovate,” MIT Sloan Management Review, Vol 47 (3), p 75 © Palmatier, 2017, Marketing Strategy, Palgrave ISBN: 9781137526236 Starbucks Brand Offering (WHAT) Solution Networking Customers (WHO) Presence (WHERE) Supply Chain Organization Platform Customer Experience Process (HOW) © Palmatier, 2017, Marketing Strategy, Palgrave ISBN: 9781137526236 Value Capture Walmart Offering (WHAT) Platform Brand Solution Networking Customers (WHO) Presence (WHERE) Supply Chain Organization Customer Experience Process (HOW) © Palmatier, 2017, Marketing Strategy, Palgrave ISBN: 9781137526236 Value Capture 10