Toyota and Toddler University, Essay Example

Chapter 9, Issue for Discussion Question #9:

Toyota was successful thanks in part to their channel management and motivating their channel members. Rosenbloom discusses the importance of channel management believes, “channel management involves all of the plans and actions taken by the manufacturer aimed at securing the cooperation of the channel members in achieving the manufacturer’s distribution objectives.” (Rosenbloom 165) In the automobile industry, the use of effective distribution channels and it is essential in improving their value in the market.

Toyota was effective in releasing its Lexus to the market, which were successful because it providescustomers with the service and convenience of purchasing them at their dealerships.  In order to be successful in their distribution they first needed to create cooperation among the channel members and effective channel management.The first steps to creating effective channelsare to develop close relationships with the channel members. “By developing close relationships, “partnerships”, or strategic alliances can manufacturers, and channel members work together to achieve high levels of effectiveness and efficiency in distribution…” (Rosenbloom 166) The relationships that Lexus has with its dealers is very close in order to have trust in them to have the cars available to customers.  Motivating channel members is essential to the distribution objectives, and the underlying channel strategy. More importantly the best way in motivating the channel members and effective management is through distribution programming, which deals with all aspects of the channel relationship.

Channel management is critical in Toyota and other companies. It helps companies decrease their costs and reach customer profitably. Motivating channel members through promotions and other strategies helps with member cooperation, and keeping the distribution objectives, that are essential in the success of the organization.

Chapter 10 question, Issue for Discussion Question #3:

Many organizations recently have discovered the convenience of saving costs and inventory space due to new sleeker product designs and channel management to their distributors. Toddler University Inc., has also found success in redeveloping their products that have helped to reduce the retailer’s inventory and cater to their customer by providing the conveniencein the goods, they are purchasing. Toddler University Inc., has developed a shoe that are able to use one-width shoe that can insert five shoe inserts of varying width, which has helped cut down on inventory. This s a remarkable product and channel management strategy.

In channel management the organization must provide a strategy in which, “they are aware how channel management interfaces with other variables of the marketing mix: product, price, promotion, and logistics.” (Rosenbloom 312) The way in which the channel management strategy and the product strategy interfaced was with product planning and development leading to a smarter more efficient shoe design; product life cycle; and the strategic product management. The strategic management helps in having close relationships with the channel members in pushing the products to be viable and profitable to both retailers and the corporation. The relationship or partnership is added by channel motivation and an effective product that helps both “partners.”

For Toddlers University Inc., they have developed an efficient product that not only serves the best interest and convenience of the customers, but also helps in managing inventory for the retailers. In channel management, the company works to provide their dealers or channel members with products that improve their value in the marker. Their product strategy and channel management strategy interfaceconsider the product planning and development, the product cycle, and the strategic product management that help with the success of the products and both the retailer and the company’s success.

Works Cited

“Channel Strategy.” Search IT Channel. N.d. Web. 23 Jan 2014. http://searchitchannel.techtarget.com/definition/channel-strategy

Rosenbloom, Bert. Marketing Channels.Cengage Learning. 2011.