Week 2.4 Marketing channels

Marketing Environment

Simon Isrif, 438344, DIM1VC

07-12-2016

Week 2.4      Marketing channels

      (Outsidesource, n.d.)

Draw an overview of the distribution channels for your product. Describe the channels in terms of complexity and distance.

Sennheiser uses multiple distribution channels for its headphones and other products to aim at a larger, more varied target group. Sennheiser focusses on both consumers and business customers. This multi-channel marketing strategy includes the following channels for consumers:

·         Producer-consumer: A direct, low distance channel with low complexity used primarily through eCommerce (internet communications, selling and purchasing).

·         Producer-retailers-consumers: A channel where products first go to retailers after production before they are sold to the consumers. Distance and complexity increases.

And the following for business-to-business:

·         Producer-business customers:  A direct channel similar to the Producer-consumer channel. An example in which this channel applies for Sennheiser is the selling of products to professional users, like for example DJ’s or other artists. This channel has a low distance and complexity, which consequently is useful for business customers who then can receive technical assistance with ease.

·         Producer-business to business distributors-business consumers: A channel that is aimed at reaching a larger number of business customers. Products are send to distributors before being sold to business consumers. By the building of an inventory of the distributors, a larger quantiy of good can be sold to companies in for example the office and telecommunication sector in which Sennheiser is active (Sennheiser, n.d.). The channel complexity and distance increases compared to the more direct Producer-business customers channel.

Describe which distribution functions are fulfilled through the different channel members.

Both the ‘Producer-consumer’ and ‘Producer-business customers’ channels serve as a direct channel in which distribution functions like price negotiation and costumer relationship building are the main focus. These channels create a greater communication and relationship between the producer (Sennheiser) and the costumers.

The ‘Producer-retailers-consumers’ channel and ‘Producer-business to business distributors-business consumers’ channel mainly fulfil the distribution functions involved in the promotional and storage/distribution sector (Tutorsonnet, n.d.).

How can your product’s image be influenced by the retail concept in which it is sold?

The retail concept in which Sennheiser headphones are sold can influence the product’s image greatly. Sennheiser values highly qualified dealers that focus on customer service and a qualitative retail environment to mirror the quality offered in their products. Sennheiser even has an “Authorised Sennheiser Partner” labelling system to protect the brands image (discussed in the next paragraph).

Which distribution strategy has been chosen for your product?

In 2013, Sennheiser introduced the selective distribution strategy for its products. This strategy applies for all the dealers across the different channels. The selective distribution strategy was introduced to protect the Sennheiser brand by providing accreditation, which in this case means labelling the qualified dealers as an “Authorised Sennheiser Partner”, this way of labelling channel members makes it easier to monitor and distinguish the difference between the various vendors (Sennheiser, 2013). Selective distribution is desirable when a company, like Sennheiser, values customer service and a high quality standard from its channel members.

References

Outsidesource. (n.d.). Making sense of multi-channel marketing. Retrieved from http://www.outsidesource.com/blog/making-sense-of-multi-channel-marketing

Sennheiser. (2013, November 11). SENNHEISER UK FURTHER INVESTS IN SELECTIVE DISTRIBUTION STRATEGY. Retrieved from http://en-uk.sennheiser.com/news-sennheiser-uk-further-invests-in-selective-distribution-strategy-

Sennheiser. (n.d.). SENNHEISER AT A GLANCE. Retrieved from http://en-uk.sennheiser.com/about-sennheiser-at-a-glance

Tutorsonnet. (n.d.). Functions Of Distribution Channel. Retrieved from http://www.tutorsonnet.com/functions-of-distribution-channel-homework-help.php