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Marketing Channel
Marketing Distribution
reach the point of product origin to the consumer with the purpose of moving products to the final destination.
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Channel Members
(intermediaries, resellers, and middlemen)
negotiate with one another, buy and sell products , facilitate the ownership
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discrepency of quantity
the difference between the amount of product produced and the amount and end user wants to buy
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discrepncy of assortment
the lack of all items a customer needs
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temporal discrpency
when a customer is not ready to buy a product
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spatial discrepency
its harder to get something that isnt around the area
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taking title means
they own the merchandise and control the terms of sale
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example of intermedaries
retailers and wholesalers
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Product characteristics
- whether the product is standarized or customized for the consumer.
- like insurance
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Buyer considerations
affecting wholesaler choice include how long the buyer is willing to wait to receive product
ex:buying book online
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market characteristics
whether it will sell in one area
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Transactional functions
contacting potential customers, determining goods and services, assuming the risk of your inventory
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logistical functions
overcome temporal and spatial discrepncies, mantaining inventory,
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facilitating functions
gathering info about other channel and consumers, facilitate the glow of goods to the final consumer
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an agent broker/channel is used
markets withh small manufacturers and mayn retailers
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two channels:
retailer- most common when retailer is large and buy in large quantities
wholesaler channel is used for low cost items that are frequently purchased, candy, cigs, magazines
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Supply chain management
- givinig managers total visibility of the supply chain both inside and outside the firm.
- -customer driven
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Benefits of Supply Chain Management
lower inventory, transportation, warehousing, and packaging costs
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managing channel relationships
- power, control, leadership, conflict, and partnering
- chanel power- control other chanel members
- chanel control-one member controls another
- chanel leadership-excercise authority
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The logistics of supply chaing
- 1. sourcing and producing materials and supplies.
- 2. production scheduling
- 3.order processing
- 4.inventory control
- 5.warehouse materials and handling
- 6. transportation
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Inventory control system
develops and maintains an adequate assortment of materials of products to meet a manufacturers or customers demands.
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supply chain manages generally choose a mode of tran basis
- cost
- transit time
- reliability
- capability
- accessiblity
- traceability
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Trends in Supply Chain Management
- -advanced computer techonlogy
- -outsourcing logistics functions-warehousing to a third party
- -electronic distribution-etrade , Itunes, and movies.com
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Channels and Distribution Decisions for Global Marketing
spread of free trade agreements and treaties, global marketing channels and management of the supply chain have become increasingly important to US corporations that export their products manufactured abroad
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retailing
activities directly related to sale of goods and services to the consumer for personal , nonbusiness,
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retail establishment
classified by ownerships, level of service, product assortment and price
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Retail operations
- -ownership
- -level of service
- -product assortment
- -price
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Major types of Retail operations
- Department Stores-carry everything
- Speciality Stores- (footlocker) specializing in a type of merchandise
- Supermarkets-large, self serviced
- Drugstores
- Convinience store-mini supermarket
- Category Killers- narrow mech(best buy)
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Nonstore selling
- Automatic Vending-machines
- direct retailing-door to door
- direct marketing-from their home
- electronic retailing-tv networks, online retailing
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retailing market strategy
- defining a target mix
- choosing the retailing mix
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Retailing Mix
first element is the product offering, decide what to sell on basis of what their target market wants to buy.
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Promotion
advertising, public relations, and sales promotion
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Promotional Mix
- advertising-paid communication in the sponsor or company is identified.
- public relations-helps organization communicate with its customers, suppliers,
- sales promotion- stimulate immediate increases in demand
- personal selling-perosnal paid for comm
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Promotional Goals and AIDA
- attention, interest, desire, and action.
- attention-gain att of target market
- interest- simple awareness of a brand leads to sale
- -desire- convince
- -actions- target market hasnt been convinced.
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Factors affecting promotional mix
- nature of the product-
- stage in profuct lifestyle
- target market characteristics
- available funds
- push and pull strategies
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Major Types of Advertising
- Institutional-enhance image
- product-promotes good or specific service
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Product Advertising
- pioneer-demand for new
- competitive- influence demand for specific brand
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Creative and Media Decisions in Advertising
advertising campaign
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