Marketing essay on: Channel member behavior & coordinating mechanism
Channel Conflict: At Coles, the channel structure states that it maintains fair relationships with their supplier so as to provide the best quality products to the customers. Coles also has an access to the public website for its present and potential customers. The website helps the customers or the public to be well acquainted with the different aspect such as logistics, supply chain, Occupational Health & Safety (OHS), etc (Chiang, Chhajed & Hess, 2002).
The channel structure of Coles could be defined with the help of a flowchart such as:
(Source: Simons & Bouwman, 2006)
Building relationships with the intermediaries would provide with different types of benefits to the consumers such as high levels of effectiveness, assortment of the products, routinization of the transactions, easy search of goods & services, etc (Chiang, Chhajed & Hess, 2002). With the help of cooperation amongst the intermediaries, the channel of distribution at Coles has been grasped in the much effective manner. With the help of cooperation amongst the suppliers as well as the manufacturers the complexity within the entire channel distribution can be reduced as well as duplicity within shipping, ordering, processing could be managed. Maintaining fair relationship between the intermediaries would help to bridge the gap between the assortment of the goods as well as the demand of the customers (Lewison, 1977).
Channel Cooperation: The channel cooperation at Coles is seen with respect to the relationship all the intermediaries of the organization possess. The channel cooperation at Coles can be seen with respect to the two main intermediaries i.e. manufacture and supplier.
Coles has an access to the direct website which caters to its potential as well as current employees. This has helped the organization to sell its products directly to the consumers by using various effective & efficient methodologies. Though, it must be taken into consideration that intermediaries provide with different types of benefits to the consumers such as high levels of effectiveness, assortment of the products, routinization of the transactions, easy search of goods & services, etc (Chiang, Chhajed & Hess, 2002).
With the help of cooperation amongst the intermediaries, the channel of distribution at Coles has been grasped in the much effective manner. With the help of cooperation amongst the suppliers as well as the manufacturers the complexity within the entire channel distribution can be reduced as well as duplicity within shipping, ordering, processing could be managed. Maintaining fair relationship between the intermediaries would help to bridge the gap between the assortment of the goods as well as the demand of the customers (Lewison, 1977).
It has been that, manufacturers most of the times produce goods & services in large quantities. Whereas, the demand for a particular quantity of a goods or service are less as compared to the quantities manufactured. Therefore, in order to have smooth flow of goods & services, the intermediaries would perform various functions such as sorting, accumulation of the goods, allocation of the services, create assortments, etc.
Cooperation within the channels of distribution would help in order to decrease the cost of distribution. With the help of channel cooperation the exchange relationships would be helpful in terms of delivery, lot size, payment norms, communication, etc. With the help of the channels of distribution, no seller as well as the buyer would bargain for any transaction (Chiang, Chhajed & Hess, 2002).
Cooperation amongst the various channels of distribution would help both the buyers as well as the seller’s to determine the needs of the consumers. This would help in order to provide with a good or a service which would match up the needs or the requirements of the customers. The degree of uncertainty within the channels of distribution would help to reduce the complexity of the same (Simons & Bouwman, 2006). For example, Coles refers to a leading retailer shop in Australia. Therefore, the consumers find out what are they looking for while they shop in the retail store. While shopping in the retail store, there are different lines of trade which is available such as grocery items, clothes, confectionery, hardware, shoes & slippers, etc (Simons & Bouwman, 2006). The consumers have to locate what are his requirements & which section shall he target in order to get his need fulfilled. In addition to maintain fair relationship with the two intermediaries, various private brands are being manufactured such as Coles, Coles smart buy, Coles finest, Coles organic & Coles green choice (Chiang, Chhajed & Hess, 2002).
Channel Control: The channel control along with Coles can be seen with respect to the channel members associated with the same. In order to maintain proper flow of goods & services the channel members would be able to maintain fair link amongst physical possession as well as ownership of the goods and services. This would include negotiations, direct flow of the goods & services, promotion flows, finance, assuming the different types of risks involved, ordering as well as payment of the same. Physical possession, ownership as well as proper flow of the goods & services from the manufacturers to the customer would help in order to have one direction within the channels of distribution (Lewison, 1977).
There are various support functions which would help in order to control the channel members as well as their distribution tasks. Some of the tasks which shall be taken into consideration would refer to storage, logistics, transportation, insurance, finance, advertising, etc. These variables would help in order to perform as well as facilitate the various agencies in order to practice the marketing channels (Chiang, Chhajed & Hess, 2002). When seen from the channel management or channel analysis point of view, channel control would be referred to as one of the most effective measures which would help in the transfer of the title, etc. The main cause of channel control is to take up different types of managerial decisions at Coles which are involved within the channel membership (ENotes, 2012).
Maintaining proper relationships within the channels of distribution at Coles would help in order to forge better as well as create cordial relationships within the channel members. The channel members are interdependent to one another. This means that, if the manufacturers will not manufacture the goods or services on time, the suppliers will not be able to take charge of the same & deliver it to the customers on time. The relationship between the channel members would be influenced with the help of the structured members. This would help to control the channels of management at Coles as well as maintain effective & efficient connectivity within the same. Relationships between the channels members of Coles would be able to influence how the channels of distribution are being framed (Chiang, Chhajed & Hess, 2002). This would also help in order to have an improved performance of the entire distribution system along with the various achievement achieved by managing the variables covered in the channel structure along with the channel flows.
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