What were the key decisions taken by p g in relation to the distribution channel

Moreover, the reduction of trade barriers and tariffs indicated that to retain a competitive advantage globally the company had to develop an effective International strategy, whilst benefitting from economies of scale.

Desktop modeling tools such as Micro TSP have made this kind of statistical analysis part of the mainstream now. A typical marketing-mix model would have recommended cutting media spend and instead resorting to heavy price discounting.

Making use of their services is a tempting alternative. What was the major information technology enabler to make the reengineering effort successful?

This effect can be captured through modeling the price in MMM. The cross-price elasticity and the cross-promotional elasticity can be used to devise appropriate response to competition tactics.

The objective is to reach the customer in as many ways as possible. Skills You want your customers to receive the best possible service. Ch10 of textbook; Case Cross-check of the Marketing Mix A step back needs to be taken at this point to see how all the elements identified and planned for relate to each other.

For example, the initial performance of Coke Zero was really poor and showed low advertising elasticity. Now that the attack has ended, what can the iPremier Company do to prepare for another such attack?

Meeting at a regular time intervals ensure regularity. Marketing-mix modeling presented a rigorous and consistent approach to evaluate marketing-mix investments as the CPG industry had already demonstrated. Supply Chain Strategy Consider the experiences that you have had in buying a car; compare those to the experience of buying a computer online.

In some cases it can be used to determine the impact of individual advertising campaigns or even ad executions upon sales. They added "People" to the list of existing variables, in order to recognize the importance of the human element in all aspects of marketing. This strategy is best suited for many fast-moving consumer goods FMCG and for many fads.

Both of these tactics may be highly effective within the corresponding demographic groups but, when included in aggregate in a national or regional marketing-mix model, may come up as ineffective.

Typical output of such analyses include a decomposition of total annual sales into contributions from each marketing component, a.

Understanding the Marketing Mix Concept – 4Ps

He holds a Bachelor of Arts in history and economics from Bristol University. One of the main strategic decisions to be taken in relation to the distribution channel is deciding on the intensity of the distribution channels.

The variation in the base volume is a good indicator of the strength of the brand and the loyalty it commands from its users.

Some MMM approaches like to include multiple products or brands fighting against each other in an industry or category model - where cross-price relationships and advertising share of voice is considered as important for wargaming.

Also relationship between marketing and sales may be radically different in the launch and stable periods. Some of these distributors will have specialized in certain product categories, but many others would be dealing with varied products. MMM defines the effectiveness of each of the marketing elements in terms of its contribution to sales-volume, effectiveness volume generated by each unit of effortefficiency sales volume generated divided by cost and ROI.

In relation to the bias against equity building activities, marketing budgets optimized using marketing-mix models may tend too much towards efficiency because marketing-mix models measure only the short-term effects of marketing. These learnings are then adopted to adjust marketing tactics and strategies, optimize the marketing plan and also to forecast sales while simulating various scenarios.

The creation of variables for Marketing Mix Modeling is a complicated affair and is as much an art as it is a science. When case managers were created indid the process work any smoother? However, crucial to these elements were sophisticated systems for co-ordination which Lafley recognised would be essential and championed the use of IT systems, even setting up a deal with Cisco systems to take full advantage of their complex systems, systems support; in order to reduce IT costs through economies of scale —spreading their system globally.

Many sellers of consumer durables, apparel, and other relatively high-value goods use this kind of distribution network. Evaluating Placement Options At this point the marketing manager needs to evaluate placement options to understand where the customer is most likely to make a purchase and what are the costs associated with using this channel.

There are also some of the following disadvantages that have to be considered: If modeled at the national level or even the market or DMA level, these effects may be lost in aggregation bias. If you were Teri Takai, what would you recommend to senior executives? The impact of marketing spend on [brand equity] is usually not captured by marketing-mix models.

Role of Marketing Manager A mature, intelligent and innovative marketing manager needs to be at the helm of the marketing mix. The Power of Virtual Integration: There is less competition at the point of sale.

Physical Evidence is proof and a reassurance that a service was performed People are the employees who deliver the service Processes are the methods through which a service is executed and delivered to the customer Lack of True Customer Focus Though a total focus on the customer and what they desire is a vital element of the 4P model, this truth is often in danger of being overlooked by enthusiastic marketing teams.That's why selecting a distribution channel is an important aspect of building a competitive advantage for businesses of every size, according to Shorey Consulting.

Distribution channels include your own direct sales force, retailers, distributors and the Internet.

Distribution Channel Management

1. What were the key decisions taken by P&G in relation to the distribution channel? P&G started testing different methords to change the way merchandisers could order products. InP&G tested a new approach to channel logistics for replenishment ordering with a moderate-sized grocery chain.

Customer Relationship Management Group 5 – PGP Dheeraj Kumar () Gautam Punj ) Parambrahma Panda () Vishrut Shukla () Ravi Purohit () O Question 1: What were the key decisions taken by P&G in relation to distribution channel? Could a mid-sized manufacturer have used this approach?.

If you were Bob Hemphill, what would be your plan for making the PTP implementation a success? HBS Case# Procter & Gamble What were the key decisions taken by Procter & Gamble in relation to the distribution channel?

P&G made three major decisions in relation to the distribution channel. The first decision was the implementation of CRP, which was focused on improving supply logistics and reducing channel inventory. The key decision taken by P&G in relation to the distribution channel was the introduction of the continuous replenishment system through the various retailers that they worked with.

This was implemented to solve many issues such as helping distributors prevent losing money by holding too much inventory.

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What were the key decisions taken by p g in relation to the distribution channel
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