Channel Plan Designing - Term Paper Example

? Channel Design Process Channel Design Process Designing a channel plan is a very important part of planningfor the marketing of a new product or service. The channel details the distribution of the new service and products from the manufactures right to the end users or consumers (Louis and David, 2000). The channel plan is necessary for both online and traditional traders as it only acts as a guide for delivering goods and services to the consumers. In existing markets where the channel of distribution is not defined, marketers can also analyze and define the channel so as to help manufactures improve the distribution of their services and goods. A good channel distribution plan identifies the market segment that the products target, the preferences of the target customers, various market conditions and describes the appropriate structures that ought to be put in place so as to ensure efficient distribution of goods and services (John, 2002). Channel design planning enables products to grow from obscurity to become internationally recognized brands. This has made channel design planning one of the most demanded strategies in marketing in the contemporary world. The main essence of marketing channels is about making products and services available to consumers conveniently when, where and how they need them. A distribution channel entails a lot of strategies, most of which the consumer is not aware about because the consumer is only interested in getting the final product (Louis and David, 2000). The channels consist of very complex and dynamic systems which include distribution centers, technologies and strategies that are all aimed at ensuring the customers can access the products and service more conveniently. This plan will focus on creating a channel design for my new business dealing in interior design. This is a new business that I have set up by establishing an interior design company. In this company I intend to create decor products for homes and sell the same on the website of my company. I also intend to offer a wide range of services relating to interior design. There is already an existing market for interior design with few companies already existing I the industry. The problem however is that the distribution channel is not well designed. Having my own channel design plan will make my business stand out and benefit more from because it will be much easier for me to get my services and other products to the target customers. I decided to take my company to the internet because this is turning to be one of the easiest ways to get products to consumers. More and more consumers are becoming aware of buying goods from the internet making e-commerce one of the most popular business transactions. By selling my products on the internet I will be reaching out to consumers directly without the need of going through traditional middle men in the supply chain. This will make my products cheaper and attractive to my target consumers. A detailed analysis of the design plan is as shown below. The Market to be targeted by the new business Interior design is an emerging field that is gaining ground with a few established companies already offering their services to consumers. My new business hopes to grow quickly and become one of the leading businesses in the industry. In order to achieve this, it is important to identify my target consumers so as to be aware of the market segment that the business will be focusing on. The main consumers in the interior design industry include the real estate investors, home owners, event planners among others. There is a huge demand for decor materials, interior design advice among other services. Given this huge market the industry has, my business will only focus on events planners as the primary market segment. These events planner include planners of wedding receptions, birthday parties and other gatherings that need decor products. Since most of my products will be sold on the internet, a huge chunk of this segment will have to be internet users. Customers’ Preferences My target consumers need high quality and attractive decor materials as well as consultation services relating to interior design. Human beings like to have fun and gathering such as weddings, birthday parties, anniversary celebrations among others have become popular in the society today. One of the most important aspects of these gatherings is the aesthetic value that guests will enjoy at the venue. This has made interior design one of the most important parts of events planning. Customer preferences in this industry are guided by the desire to attract more people and make them love the whole event starting from the environment itself, thus, the need to have high quality services and products among customers across the industry. Evaluation of the Market Macro Conditions Since the 20th century, the internet has become one of the most powerful business tools to date. Electronic commerce, commonly known as e-commerce has greatly revolutionized the way businesses conduct their businesses. One of the ways in which the internet has revolutionized business operations is the removal of middle men in the supply chain and connected consumers directly to producers. With time, new middle men emerged on the internet, known as info-mediaries. These are the internet companies that provide consumers with information regarding the products and services that companies offer on the internet. These companies include Yahoo! Autobytel, eBay, and Google as well as other cyber retailers such as Amazon. These are the existing channels of distribution on the internet. The consumers will get the information about products and services from the new middle men on the internet and then come to the website of the company to buy the specific products. The company will then deliver the goods directly to the consumers. The competitive nature of internet business makes it very difficult for businesses to have a sustainable competitive advantage. This is because of the dynamic nature of the market which requires significant regular changes in the business strategy with regard to the marking strategy, product pricing and promotion. In order for a product to be sold effectively in this channel, there is need for there to be a lot of relevant information about it on the internet from the ‘middle men’ on the internet who are mainly the information providers. Channel Partners Appropriate channel partners that would enable efficient marketing of my products include social media companies such as face book and twitter, search engines such as yahoo and Google, online retailers such as Amazon and eBay among others. References Louis E. Boone and David Kurtz (2000), Contemporary Marketing, 10th ed. Fort Worth, Tex.: Dryden Press. John A. B. (2002). “Main Street Trumps Wall Street,” Business Week (June 10, 2002): 134– 138. Neves, M.F. (2000), ``Revolutions in food products distribution’’, Journal for the Fruit Processing and Juice Producing European and Overseas Industry (Fruit Processing/ Flussiges Obst), Vol. 10 No. 5, May, pp. 186-7. Read More