Transcript The Dawn of a Maturing Industry

Chapter 8
Channels in ecommerce
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Learning objectives
Different channels that are available for ecommerce
How to manage multiple sales in ecommerce
How to blend channels for growth and profitability
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Introduction
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Channel for marketing is a mix of field sales, retail, business
partners, direct marketing, call center, and electronic media
This is already happening in In industries such as digital,
technology, retail, and financial services
This implies to grow profitably and effectively, it will require a
mixture of optimized channels
The optimization will lower selling costs, happier customers,
and more reliable results
CASE : Airtel
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The company initially dealt with automating customer billing
processes only. The marketing was done through sales force
through direct marketing route. Then it adopted mass
communication channels such as TV, digital banner to attract
customers. Now a combination of third party business
partners, such as stationary shop owners who their own office
space to sell ‘recharge vouchers’ to individuals and its own key
customer account sales forces along with banner
advertisements in different internet websites and call center
channels to generate demand and support business partners.
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e-commerce in multichannel marketing
e-commerce portals need to collect data for each and every sale
these data generate information so that proper managerial decision is taken
These decisions help improve sales for the organization
Channels come in many different types and roles
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Sales channel
Service channels
Direct marketing channel
Business partner channel
Ecommerce channel
Tele marketing channel
Call centre based channel
Email based channel
SMS based channel
combine these call center and electronic channels with traditional field
sales, retail, and distribution partners into multichannel selling systems
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e-commerce in multichannel marketing...contd..
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internet penetration and consumers becoming are tech savvy
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can support both direct selling and indirect selling
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Dell vs HP : unlike Dell, which thrusts its marketing only on e-commerce, HP has
decided to use multi channel marketing so as to get maximum market share in
personal computer industry - “hybrid” process had a 50 percent close rate
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Hybrid reduces
 conflicts between selling channels,
 lost sales leads that fall through the cracks,
 gaps in market coverage
 focus from building channels to integrate channels
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Such hybrid channels reduce
 Salespeople in different channels will compete for the same business;
 Leads might not be followed up for converting them to customers;
 Inconsistencies in customer relationship management;
 Ineffective integration of channels because of which there could be revenue
leaks.
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e-commerce in multichannel
marketing...contd..
To be effective in multichannel system, e-commerce
should define
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Service Level Agreements (SLA) for each channel
new incentive plans that encourage people in different channels
to work together
strategizing the entire potential market
defining new rules and channel policies
Order fulfilment through ecommerce
Integrated environment so as to build partnerships with
its vendors, sub-contractors, logistics providers as well as
its customers
helps its stakeholders in increasing their value proposition
long term business strategic partnership is developed
Provides support with different degree of customization
to suit the partners specific requirements
customers are offered a choice of different levels of
support to suit their specific requirements
Project management tools help to provide a detailed plan
and schedule for the implementation program
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Order fulfilment through ecommerce..contd..
Ecommerce portals provide required training and skills to their partners
 impart online training modules
 Online training reduces time involved in logistics
continuously fine-tuned to enhance response to market needs
Inventory Management through the portal
Helps in Inbound Planning Process
 Inquire into expected receipts against purchase orders or Advance
Shipment Notices (ASN)
 (Re) print receiving worksheets for an ASN
 Create or modify ASNs
 Create LPN's (License Plate Numbers)
 Schedule docks and workers for unloading
 Enter, modify or change the status of ASN's
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Order fulfilment through ecommerce..contd..
Consolidating Orders through the portal
 Load Planning Module (LPM) tools help in consolidation
 LPM considers trailer availability, customer and SKU loading
constraints to plan loads
 Warehouse level inventory allocation is done for the load
 Shipments can be grouped
 e-commerce portal in supply chain
 Builds long-term strategic relationships with all the business
partners including customers
 Recognizes and rewards team efforts
 Easy to use and implement
 Flexible, modular and scaleable
10 Open systems, client/server
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CASE: Carwale.com and Cardekho.com
Points to be discussed
 Research on suitable model based on
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Price
Model
Features
Prospect to converts
Scheduling of test drives
Options provided
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Colour
Model
Financial
Case: Cafe Coffee Day
Discuss
 New business model in coffee
 New experience for all stakeholders
 Order fulfilment
 Value propositions to all partners
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Summary
We discussed role of e-commerce in a multi channel systems
 Using technology improve effective conversion rate
 information does not fall through cracks
 improving predictability, sustainability and accuracy of
results
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