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Channel Stewardship and Mapping Channels Class Notes

Channel stewardship enables companies to design and evolve their channel strategy in response to marketplace changes. It leads to high performance by keeping the strategy in tune with customer and competitive environments. As a channel steward, a company oversees its channel value chain activities to ensure customer needs are met. The key disciplines of channel stewardship include mapping industry channels and forces, building and updating the channel value chain, and aligning the channel system.

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Rohit Ghosh
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734 views

Channel Stewardship and Mapping Channels Class Notes

Channel stewardship enables companies to design and evolve their channel strategy in response to marketplace changes. It leads to high performance by keeping the strategy in tune with customer and competitive environments. As a channel steward, a company oversees its channel value chain activities to ensure customer needs are met. The key disciplines of channel stewardship include mapping industry channels and forces, building and updating the channel value chain, and aligning the channel system.

Uploaded by

Rohit Ghosh
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Concept of Channel Stewardship

• It enables a company to design, manage, and evolve, its channel strategy in light
of changes that arise in the competitive and customer environments.
• Channel stewardship leads to high performance, because it is more in tune with
the changes in the marketplace.

developing and managing channels of distribution HBSP


• A channel steward helps to ensure customer needs are met.
• The channel steward is generally a group of senior managers in the
company that produces goods and/or services.
• Sometimes an intermediary can also take on the role of channel
steward.
• Channel Steward oversees the ‘Channel Functions’ which create value
for the customer (Channel Value Chain Activities)
• Channel Stewardship encompasses three broad disciplines –
• Mapping the industry channels
• Building and updating the channel value chain
• Aligning and influencing the channel system

developing and managing channels of distribution HBSP


The Three Disciplines of Channel Stewardship

developing and managing channels of distribution HBSP


Mapping the Industry Channels
(Mapping the Four Forces Affecting Channel Strategy)

developing and managing channels of distribution HBSP


Mapping the four forces

Customer wants and needs


• Consider not just products or service but a number of other elements including complementary products and
services eg in an auto.
• I
Channel Capabilities and costs
• Capabilities of the supply chain greatly influence value of product or service
• Efficiency is not the only objective : Efficacy?
• Is it just a physical distribution system or more?
Channel Power and Influence:Comes in 2 forms
• Unique product technology
• Market access and intelligence
Competitive postures and actions:
• Suppliers and channels partners compete with each other and channel systems
• Need to map these forces before changes introduced.
developing and managing channels of distribution HBSP
Questions to Jump start the process
Customer wants and needs :
• What do consumers buy , why do they buy, how do they buy?
• How do industry players segment the markets ?
• What influences have impacted consumers wants and needs?Any shifts?
• Are consumers satisfied with the output of channels ? Any gaps?
Channel capabilities and costs:
• What are the industries capabilities (speed, assortment,warranty )
• How have channel capabilities and costs evolved?
Channel power and influence
• How has channel power and influence shifted between constituents?
• What accounts for this shift? And who has gained and why?
Competitive postures and actions
• What has been the competition? How has it evolved?
• Who is the dominant player? Most profitable ? How have their channel strategies evolved?
developing and managing channels of distribution HBSP
Channel evolution in the PC industry
1975-1980 1980-1985 1985-1990 1990-2005 2005-2015
Market APPLE IBM IBM & DELL HP
Leader compaq

Dominant Boutique Direct Value added Direct -Tel/Net Electronics


Channels retailers Salesforce reseller(VAR) VAR’s stores
Speciality ComputerSup CSS Direct
computer store er store(CSS) Electronic CSS
stores

Customer Consumerists Businesses Business’s Business’s Consumers


Segments (hobbyists) Professionals Consumers Consumers (edn,infotainm
Professionals Consumers( edu SME’S SME’S ent)
cation) SOHO’s SOHO’s Businesss
SME’S/SOHO’s

developing and managing channels of distribution HBSP

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