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13 Cards in this Set

  • Front
  • Back

Importance of DM

Vital in creating value


•intrinsically linked to pricing


•virtual/physical/service

Aims

•provides utility


•establishes service levels


•minimise costs


•customer feedback loop


•increase efficiency


•co-ordination of roles

Customer needs

•convenience -customers don't have a lot of time


•service and support


•a good price


•availability


•speedy delivery


•reliable supply


•range of choice


•empathy when supply is interrupted

Convenience is key

•access


•search


•possession


•ease of obtaining


•transaction

Sustainable competitive advantage

•navigation is process of steering between the mass and variety of information


•reach, richness, range

Channels

•direct (own channels)


•good for supplier


•however, problematic for buyer due too availability,speedy supply and range of choice


Omni-channels

Seamless integration allowing customer to interact over many touchpoiints

Decision influencers

•organisational objectives


•market size, dispersion and remotness


•buying complexity and behavior


•product characteristics


•changing environment (PESTLE)

International influences

•companies entry mode


•generic strategy


•nature and features of product service


•infrastructure in foreign country


•technology existing


•foreign market structure


•culture and consumer literacy

External factors affecting channel decisions

•consumer charateristics


•nature of product


•nature of demand


•competition


•legal regulations


•business practices

Decision concerning the structure

*market coverage



•channel width


*channel length•channel width •control/cost•degree of integration


•control/cost


•degree of integration


Concerning Managing and controlling distribution channels (Arnold,2000)







•select distributors


•look for distributors capable of deveolping markets


•treat local distributors as long term partners


•maintain control over marketing strategy


•make sure distributors provide you with a detailed market financial performance data


•build links among national distributors

Internet

Disintermediation


Shift spending online too offline


Larger selection


Common due to use of smartphones and tablets