[MUSIC] Hi, I'm here today with Maria Teresa Aranzabal, which is a Professor Marketing at IE Business School. And she's an expert in distribution channels, so she's going to help us introduce the distribution channel strategy. That as you know, is part of the marketing mix and of course, part of the marketing plan. Hi Maria, how are you? >> Hi Ramon, very well. >> I would like to ask you today, what do you consider necessary when putting together a marketing plan concerning the distribution channel and retailing strategy? >> Okay, first of all, I want to explain the role of marketing channels. They do perform a role of moving products and services from the manufacturers to the clients or consumers. So there are at least four aspects that we need to consider. The first one, we'll need to start with the customer needs. What do they want? Afterwards, we have to establish our objectives. What do we expect from our channels? Then we need to set or we need to find out what are the alternatives that we have. And finally of course, we have to evaluate. >> Good, so it's going to be an interesting journey until you find the distribution channel strategy. My second question will be, is there a checklist that we can define of things that you have to consider when doing the distribution channel strategy in a marketing plan? >> Okay, we have always to remember that we have to know to whom we're going to make accessible these types of products or services. Then you would have to set out the objectives. We will have to take into account the nature of our company. What type of products we have. Also how is the environment, the type of competitor we may have. >> Mm hm. >> And when we start to think about the alternatives, we need to consider at least three aspects. The number of channels that we can use. So in that case, having many channels can have advantages, because their reach can be big. But it has the disadvantages that we can have conflict, so we have to find out, no, what an equilibrium. So, there may be several levels or numbers of channels and these can also be dated or undated. So, we have to consider also this aspect. If, depending on the type of customer that we have, we will have to decide how they are going to be. And there is another issue to consider also. That is, if we are going to have a channel where we have not only many intermediaries. But, we are going to have a very extensive distribution. So then, we are talking about intensive or if it's going to be something very exclusive. We also have to decide, what are going to be the terms and responsibilities. If we are going to have a pricing policy. The level of service that we should give. The territory exclusivity that we should have. When we talk about the evaluation, we need to evaluate it at least in three aspects. The economical aspects, if we actually our results. The control issues, should we give more control to our or not. And there is a third aspect and that now is becoming more important. That is the adaptability, because channels and companies, we are becoming much more global. So, it's very important that since the distribution channels are usually long term, to make sure that they can adapt over the time. >> Okay, so it seems like this is going to be a long-term decision, so it's better to think carefully. And consider all the things that my team was mentioning when deciding the distribution channel strategy. One final question. Just give us some ideas about trends in the distribution channel and retailing. A strategy that should consider when doing marketing plan. >> Okay, there is some of them that they are trained that are general trained not only in distribution. One of them of course is Internet is changing everything and is not only that is a distribution channel, no. Also, we're using internet in many other aspects that are helping the companies. We have another issue. That is of course, the client. We are in the age of the customer, so we have to always focus on what the customer wants and we have to satisfy this customer. We have the data, so we have to be able to use that data to get good insights on our customers. Of course, with all these changes, there are another two issues that one, of course, is globalization. We are going everywhere, expanding everywhere, and even the sourcing we are getting it comes from different countries, and we need a new culture. >> Mm-hm. >> And this culture is also related with a responsibility that companies want and even the customers with the environment. And the final one could be the operations. From the operational point of view, it would mix it with the knowledge and internet. There are also big changes going on. >> Good. >> And there is one very important thing that I want to tell you just to summarize, no? We have to always think first in the consumer. And then, we will be able to design the adequate channel to distribute then the product and services. >> Good, interesting trends and it's been a very interesting discussion, thank you, Maria. If you want to know more, if you want to explore more of the distribution channel and retailing strategies. I advise you that we have another course, which is distribution channel and retailing. Which is part of the marketing mix implementation especialization, that I think will be very interesting. Like I was saying, if you want to know more about this specific field Thank you very much. >> Thank you, Ramon. [MUSIC]
