ch 16 Flashcards
the tactical objective:
create value for consumers through four utilities
time- making the product available at a convenient time
place- making the product available at a convenient place
form- making the product in the form consumers want
possession- transfer product ownership to consumer
break bulk
buy in quantities you want
provide assortment
find a variety of products
hold inventory
get the product when you want it
offer services
promotion, delivery, warranty
market efficiency
buy form a few sellers instead of many
market channel perfomance
customer reach (volume) operating efficiency (cost to serve) service quality (retention)
direct channel
produces higher margins must bear the cost of channel management must bear all marketing costs manufacturer controls service quality manufacturer interfaces with customers at all contact points
indirect channel
produces lower margins
provides lower channels management costs
provides lower marketing costs
removes the manufacturer form the end-user customer
manufacturer is dependent of channel partners to deliver the desired level of customer service
retailing mix
Place, product, pricing, promotion, presentation, personnel
atmospherics
elements in the store’s design that appeal to consumers’ emotions and encourage buying
first moment of truth
3-7 seconds when the shopper notices an item on a store shelf
second moment of truth
when consumers use the product
every usage experience is a change to delight customers
signage
Price influences sales more than signs
However, if the product is on sale, pricing signage increases sales over no signs
Benefit signs dominate at both regular and sale prices
colors: entrances and impulse buys
want warm colors
red is associated with warmth and power
