Environmental Impact and Marketing Business Strategies, Essay Example

The marketing manufacturer manager of a fiberglass home insulation company found information indicating that there was a recent rise in energy prices. The marketing manufacturer manager automatically linked an increase in energy prices to consumer purchases of energy efficient material for their homes, such as fiberglass home insulation. He immediately wanted to double the inventory and floor space with the insulation products; however, the general sales manager took another perspective as consumers losing the ability to purchase products due to a recession caused by the energy prices. In reality, both individuals have a valid concern and are looking at the end result on both sides of the spectrum. The state of the economic environment puts pressure on the industries and the primary stakeholders involved, such as the marketing manufacturers and the retailers. It is important for both parties to understand which type markets and channels to use in order to utilize their resources appropriately. In addition, it is important for the parties to understand which markets to address and which consumers to target. The challenge therefore, is for the marketing manufacturer to identify the most efficient and effective channel strategies in going forth with an increase in production. (Deolite, 1)

Manufacturers are responsible for developing new products and in turn creating capacity channels and reducing channel conflict. The product success is dependent on the channel strategies and it is recommended that alterations in these strategies should occur on regular basis. (QDI Strategies) There are specific questions that the manufacturer should develop in the channel strategy and planning process. For instance, the manufacturer inquire about the target customers and which channels they purchase, how do competitors channel strategies affect the market, and is there an understanding of the expected revenues, costs and risks involved with the proposed product? (Deolite, 1) In the above case, the manufacturer understands there is a need for change with the changing market. The manufacturer’s instinct perceives the energy market to boost energy efficient product consumer rates and therefore wants to make the change to increase production of the product. There are some considerations or strategies that the manufacturer should consider in order to be successful in the decision. For instance, the manufacturer should incorporate a strategy that communicates and effectively delivers the value of the product. The value should represent the benefits that the consumer obtains and the total cost the consumer is spending. In addition, the strategy should incorporate a value in which customer perceives as a good value. (QDI Strategies)

Another channel strategy the manufacturer should undergo is providing a relationship with the retailer and establishing a valued partnership. The channel strategy should include the introduction to senior management and planning in order to increase the knowledge of customer needs. In addition, the channel strategy should help develop a social and structural bond with the retailer. This type of channel strategy would reduce the retailers’ fears of the financial risks involved as there is a greater established trust and bond. (QDI Strategies)

Overall, the identification of a potential change in the market due to an environmental issue in regard to energy efficiency can lead to either a negative or positive consumer response. If perceived as a benefit for consumer production by the marketing manufacturer, the manufacturer should identify and implement the most effective channel strategies that will reduce the fears of the retailer involved. It is the manufacturer’s responsibility to change the strategies accordingly in regard to the product, retailer needs, as well as the customer needs. Implementation of the appropriate channel strategies will result in a successful product and relationship between the manufacturer and retailer.

Works Cited

Deloitte. Channel Strategy Getting Straight to the Point. (2012). 4pp. Retrieved from: http://www.deloitte.com/assets/Dcom-UnitedKingdom/Local%20Assets/Documents/Industries/Consumer%20Business/WICM/UK_CB_ChannelStrategy.pdf

QDI Strategies. Distribution Strategy. Channel Marketing Strategies Does Your Channel. Marketing Strategy Have the Power to Succeed? QDI Strategies. (2012). Retrieved from: http://www.qdistrategies.com/channel.php