Ch.11 Place

Question 0

Marketing distribution channel & it’s objectives

Answer 0

Interdependent orgs. (Suppliers, co., resellers, customers) helping make products & services available to users, increase consumer value (Amazon prime), complete transactions (providing info, funding buyers, matching needs, financing, risk taking)

Question 1

Supply chain

Answer 1

Businesses & services used to manufacture (RM) & transport a product

Question 2

Consumer [business] channels types

Answer 2

Direct- producer directly to consumer [business consumer]

Producer, retailer [business distributor], consumer

Indirect- producer, wholesaler [manufacturer’s representative of sales branch], retailer, consumer

Question 3

Perks of distribution channels

Answer 3

Reduce number of transactions, contacts & transforming assortments

Question 4

Vertical marketing system

Answer 4

Unified system ( produ, whole, retail)
By contracts- most common (contractual like Boston pizza)
By ownership (like luxottica (retailer) & LensCrafters(manufacturer))
By power (administered like walmart pays what it wants cause it has a pile of suppliers waiting for them to sell their products)

Question 5

Franchise organization

Answer 5

Manufacturer sponsored retailer (ford dispensers)
MS Wholesaler (coke bottles)
Service-firm retailer (Mcdo)

Question 6

Horizontal marketing system

Answer 6

Mutual gain for 2 companies

Ex: travel agency+airline

Question 7

Displacement = disintermediation

Answer 7

Eliminate channel intermediates (travel agency) in order to treat directly with the consumer (become a direct marketing channel)

Question 8

Direct marketing channels

Answer 8

Channel with no intermediate levels ex: internet, infomercials

Question 9

Multichannel distribution

Answer 9

Serves different segments through different channels:
Seg1 directly (sales force)
Seg2 directly (internet)
Seg3 (bus buyers) indirect 
Seg4 only intermediate = retailer
Ex: Apple

Question 10

How to choose a channel?

Answer 10

1. Know target market needs
2. Set objectives according to env, company, consumers, products, …
3. Choose # of intermediates! their types & responsibilities

Question 11

Distribution coverage strategies

Answer 11

Intensive- as many distributors as possible (apple is everywhere)
Selective- few per territory (marriott hotels)
Exclusives- one per territory (Arab hotel)

Question 12

Channel conflict & types

Answer 12

Channel members disagree on goals, roles, rewards
Can be healthy
Horizontal- same level (2 ford dealerships #level=retail)
Vertical- dif. Level (tuppers in store, avon sales persons go online)

Question 13

Wholesaling

Answer 13

Selling to those who buy to resale

They do:
Collect market info for suppliers
Warehouse
Finance
Build assortment

Question 14

Retailing

Answer 14

Selling to final consumers

Startegies:
Impulse buying
Popularity
Small average sales

Question 15

Retailer classification

Answer 15

Amount of service (self like gasolinera, limited & full like car dealerships)
Breadth & depth of product line (dpmts, specialty, superstores, convenience (less variety like oxxo), category like Payless, supermarket like Safeway...)
Relative price (discounters like viana, factory outlets, warehouse clubs, off-price like winners)
Ownership (individual, chain stores- common ownership, centralized power (winners), franchises are contractual (Mcdo))

Question 16

Placement planograms

Answer 16

Donde ponder las costs en las shelves en los retailers

Question 17

Store design & types

Answer 17

Attractive layout, but easy to find stuff and comfortable place to shop at [maximization of exposure & time]
Grid superstore
Racetrack ikea
Free form forever 21

Question 18

Atmospherics

Answer 18

Design of an environment via visuals, music, scent in order to stimulate customers perceptual & emotional responses and shopping behaviour
Lightning
Mood
Color
music
Scent

Question 19

Sensory influence

Answer 19

Influence of environment on customer perception and behaviour
Makes use of associations : put complementary shops(aerie&aeropostal)/products near each other, brand related (hollister= surf)(chapters=coffee)

Colours red vs blue
Sounds slow/sad vs fast/happy (pace, workers, impulse purchases)
Smell (workers, customer’s memory)

Question 20

Trends in retail

Answer 20

One stop
-price, + service
New techno (Esperate al iPhone 5s)
\+ concentration 
\+ market growth (one direction/the voice= international)

Question 21

Issues

Answer 21

Power concentration
- shopping malls
+ aging population

Question 22

Public policy & issues

Answer 22

Exclusive distribution (territorial, prohibit dealers to handle competitors)
Tying agreements (forcing to carry whole product line, no peek & choose)