Marketing Pp. Lesson 12-13 17 Designing And Managing Marketing Channels

Front 1

What are Marketing Channels?

Back 1

Sets of interdependent organizations involved in the process of making a product or service available for use or consumption.

Front 2

What are Channels and Marketing Decisions? (2)

Back 2

1. Push strategy
2. Pull strategy

Front 3

What is the push strategy?

Back 3

A “push” promotional strategy makes use of a company's sales force and trade promotion activities to create consumer demand for a product.

The producer promotes the product to wholesalers, the wholesalers promote it to retailers, and the retailers promote it to consumers.

A "push" strategy tries to sell directly to the consumer, bypassing other distribution channels (e.g. selling insurance or holidays directly). With this type of strategy, consumer promotions and advertising are the most likely promotional tools.

A good example of "push" selling is mobile phones, where the major handset manufacturers such as Nokia promote their products via retailers such as Carphone Warehouse.

Front 4

What is the pull strategy?

Back 4

A “pull” selling strategy is one that requires high spending on advertising and consumer promotion to build up consumer demand for a product.

If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers.

Front 5

What are the 8 Channel Member Functions?

Back 5

1. Gather information
2. Develop and disseminate persuasive communications
3. Reach agreements on price and terms
4. Acquire funds to finance inventories
5. Assume risks
6. Provide for storage
7. Provide for buyers’ payment of their bills
8. Oversee actual transfer of ownership

Front 6

What steps do you use to designe a Marketing Channel System?

Back 6

1. Analyze customer needs
2. Establish channel objectives
3. Identify major channel alternatives
4. Evaluate major channel alternatives

Front 7

What are the Channel Service Outputs?

Back 7

1. Lot size (how many trucks)
2. Waiting/delivery time
3. Spatial convenience: Degree to which the marketing channel makes it easy for customers to purchase the product
4. Product variety: assortment breadth
5. Service backup: installation, repairs, credit

Front 8

Identifying Channel Alternatives?

Back 8

1. Types of intermediaries:

Depends on the service outputs desired by the target mkt & the channel's transactions costs. The company must search for the channel alternative that promises the most long-run profitability.

2. Number of intermediaries:
a. Exclusive distribution
b. Selective
c. Intensive

3. Terms & responsibilities of channel members:

The producer must determine the rights & responsibilities of the participating channel members, making sure that each channel member is treated respectfully & given the opportunity to be profitable.

Front 9

What are the 3 major channel alternatives criterias?

Back 9

1. Economic Criteria

The first step is to determine whether a company sales force or a sales agency will produce more sales.
The next step is to estimate the costs of selling different volumes through each channel. The final step is comparing sales & costs. Each channel will produce a different level of sales & costs.

2. Control Criteria

The agents may concentrate on other customers' products or they may lack the skills to handle our products.

3. Adaptive Criteria

The channel members must make some degree of commitment to each other for a specified period of time.

Front 10

Wat is een Verticale Marketingsysteem?

Back 10

Een verticaal marketing systeem bestaat uit elkaar in het distributiekanaal opvolgende schakels die trachten zoveel mogelijk marktinvloed te krijgen en die naar buiten optreden als een eenheid

Front 11

What are the three vertical marketingsystems

Back 11

1. Corporate VMS

Combines successive stages of production & distribution under single ownership. (Sears).

2. Administered VMS

Coordinates successive stages of production & distribution through the size & power of one of members (Kodak, Gillete, P&G)

3. Contractual VMS
Wholesaler-sponsored voluntary chains
Retailer cooperatives
Franchise organizations

Independent firms at different levels of production & distribution integrating their programs on a contractual basis to obtain more economies &/or sales impact than they could achieve alone.

Front 12

Wat is Franchising?

Back 12

Bij franchising geeft een franchisegever op basis van een contract aan een franchisenemer het recht gebruik te maken van een bepaald verkoop- of distributiesysteem

Front 13

Wat zijn de formules voor de 3 Distributiekengetallen?

Back 13

Distributiespreiding=

= (aantal winkels met M/aantal winkels met S) x100%

Marktbereik=

= (omzet in S bij winkels met M/totale omzet in S) x 100%

Omzetaandeel=

= (omzet in M/Omzet in S bij winkels met M) x 100%N.B. :

M=merk (bijv. mars); S=productsoort (bijv. snoep)

Front 14

Wat zijn de formules voor de twee Selectie-indicator = gemiddelde omzet in S bij winkels met M gemiddelde omzet in S bij winkels met S

Selectie-indicator = marktbereik
distributiespreiding 
N.B. : M=merk (bijv. mars); S=productsoort (bijv. snoep)

Back 14

Selectie-indicator= gemiddelde omzet S bij winkels met M gemiddelde omzet in S bij winkels met S

Selectie-indicator = marktbereik
distributiespreiding 


N.B. : M=merk (bijv. mars); S=productsoort (bijv. snoep)