GLASSARIES With markets and customer experiences being transformed by show-rooming, transparency, e-commerce and globalization, distribution channels have become critical sources of sustainable competitive advantage. A great product isn’t enough — managing channel conflicts, developing win-win partnerships, and understanding omni-channel marketing and hybrid shopping behavior are just as important for success. Glassaries —the beauty company—may not be as well-known as competitors like Avon, but its direct selling model has been extremely successful. Sales grew by 17 percent in 2011, and although growth slowed to 4 percent in 2012, this still beat out Avon, whose sales decreased in the same period. The company has over 3 million independent representatives in the United States and has focused on using these representatives to increase the exposure of its Nutrilite nutrition supplements and Artistry beauty products, as well as the corporate brand itself. According to Chief Marketing Officer- Karlson Joseph, direct selling is working better than ever for the company—and not as a result of any changes to their selling model. Rather, she notes that Amway is better at leveraging its existing resources by working closely with its independent distributors, who are able to give Glassaries a clear picture of what customers are really looking for and where the brand is missing opportunities. Working closely with distributors through its direct selling model has helped Glassaries adjust its marketing strategy, thereby increasing sales. While popular in the United States ($30 billion in sales), the real success of direct selling is in Latin America, Asia, and Europe ($102 billion). 

Direct selling appeals to many people because it allows them to become independent agents and set their own work schedules. Of the 13 million salespeople in direct selling, more than 80 percent work part time.

a) How is the role of an organizational mission critical for marketing channel management? 

b) As a student of Marketing discuss the different distribution channel intermediaries which the marketing team of Glassaries is exploiting.

c) Distribution channel members are always faced with conflicts .Explore these conflicts and show how they may be addressed by firms.

Answer rating: 100% (QA)

A An organizations mission and purpose will not help you to plan your business and marketing activities but it will also provide a starting point for your marketing campaigns and will guide you toward... View the full answer