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Service Marketing > Channel Marketing > Flashcards

Channel Marketing Flashcards

1
Q

Definition of Channel Management (2)

A

Channel Design:
Involves developing a channel structure, that links the SBU’s strategy with the needs of the market

Channel Operations:
the development of policies & procedures to gain & maintain the cooperation of institutions & organisations in the distribution channel. Selecting, recruiting, motivate channel members.

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2
Q

Definition of a channel

A

… is all players that participate and support the process of shifiting goods from the producer to the end user.

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3
Q

Typical decision criteria to answer “direct” or “inderect” channel

A
  • complexity of product
  • individuality of product
  • price level of product
  • single product in customer’s shopping basekt
  • local, national, global demand
  • number of customers
  • niche or volume product
  • market in or outside home country….
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4
Q

Sales means -> Power.

What are the 1. PRO’s and 2. CON’s

A

PRO:
multiplying sales work -> volume increase
Integrating sales specialists -> efficiency ingrease
CONS:
loss of control -> confidence and verification
distance to end user -> difficult product enhancements

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5
Q

What is the main target of channels?

A

CHANNEL brings them together
Sellers:
uncertain how to reach the targeted end-user
End-user:
uncertain where to find the products they want

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6
Q

Demand-side factors:

Adjustment of Assortment discrepancy (4)

A
  • sorting
  • accumulation
  • allocation
  • assorting
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7
Q

Demand-side factors:

Overcoming space and time (3)

A
  • Spatial convenience (stationary location)
  • waiting and delivery time (stock)
  • near customer service (support, advice)
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8
Q

Demand-side factors:
Adjustment of Assortment discrepancy
SORTING

A

breaking down a heterogeneous supply into separate stocks that are relatively homogeneous
(e.g. a citrus packing house sorts oranges by size and grade.

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9
Q

Demand-side factors:
Adjustment of Assortment discrepancy
ACCUMULATION

A

bringing together similar stocks from many sources into a larger homogeneous supply

(e.g. wholesalers accumulate varied goods for retailers, and retailers accumulate goods for their consumers.

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10
Q

Demand-side factors:
Adjustment of Assortment discrepancy
ALLOCATION

A

breaking down a homogeneous supply into smaller and smaller lots (bulk breaking)

(e.g., goods received in carloads are sold in small volumes. A buyer of small lots in turn sells individual single units)

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11
Q

Demand-side factors:
Adjustment of Assortment discrepancy
ASSORTING

A

building up of an assortment of products for resale in association with each other

(e.g. wholesalers build assortments of goods for retailers, and retailers build assortments for their consumers.)

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12
Q

Demand-side factors:
Overcoming space and time
SPATIAL CONVENIENCE

A

making goods physically available for easy and fast access

typically in shops (consumer products) or in warehouses with speed delivery (business products)

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13
Q

Demand-side factors:
Overcoming space and time
WAITING AND DELIVERY TIME

A

reducing waiting time for the customer by having a stock of goods being in demand available

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14
Q

Demand-side factors:
Overcoming space and time
NEAR CUSTOMER SERVICE

A

providing the know-how to support the customer on all kinds of questions or problems.

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15
Q

Supply-side factors:

are… (2)

A

routinization of transactions

reduction in number of contacts

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16
Q

Players in the channel:

Category 1

A

Manufacturer, Importer, Supplier

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17
Q

Players in the channel:

Category 2

A

Intermediaries

… wholesalers, distributors, agents, brokers, retailer, resellers

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18
Q

Players in the channel:

Category 3

A

End-users

… business users, consumers

19
Q

competence and interests of the players (4)

A 
Manufacturer 
... product, assortment, brand, marketing
Wholesaler
... procurement, logistics, supply chain
Retailer, dealer
... industries end-users, sales, point of sales
End-user
... product feature, quality, image
20
Q

Relevance of channels: a sales channel can… (5)

A

.. be a strategic advantage
.. use economies of scale and economies of scope
.. boost your market presence
.. reduces no of contacts
.. offer a One-Stop-Shopping for the customer

21
Q

the different views of producer and dealer concerning their goals
PRODUCER

A

◊ High coverage of (his) target group
◊ „Committed“ intermediaries (meaning, the own brand is No 1 out there)
◊ Positioning and selling his brands actively
◊ Producer marketing has to be implemented on the trade level

22
Q

the different views of producer and dealer concerning their goals
INTERMEDIARY

A

◊ Broad offering (meaning, all relevant producers)
◊ Little sales effort („Cash cows“, fast-selling items)
◊ Independent marketing, financed by the producer
◊ Minimal follow-up efforts (meaning, no returns due to good product quality)

23
Q

Definition of wholesaler

A

a market operator who procures goods from manufacturerers or other suppliers and sell them to resellers

24
Q

Difference between

Distributor and Wholesaler

A

Distributor handles exclusively for a producer

Wholesaler represents many producers

25
Q

Different business models in wholesale (3)

A

Value added distributor (economies of scope)
Broadline distributor ( economies of scale)
Fulfilment (optimized logistics processes)

26
Q

Different business models in wholesale

BROADLINE distributor

A

Product characteristics:
high volume
ready-to-use

Earnings:
low margin product sale
possibly logistic services (same day delivery)

27
Q

Different business models in wholesale

VALUE ADD distributor

A

Product characteristics:
high-end
expensive
specialized

Earnings:
high margin product sale
consultancy
training
project management
28
Q

Different business models in wholesale

FULFILLMENT distributor

A

Product characteristics:
High volume

Earnings:
For each performed transaction

29
Q

Types of retail

A 
Department Store
Supermarket
Discounter
Specialist store (market)
Shopping Center
30
Q

Types of retail

Differentiation by “location”

A 
Sales space (stationary trade):
Migros, Wal-Mart, Shopping center

without sales space
Amazon, ?

Non-fixed locations
door-to-door sales, sales van, market trade

31
Q

Types of retail

Differentiation by “attraction focus”

A

Convenience
Shopping Center, Convenience Store, Gas station shop, Kiosk, drive-in-store

Assortment
Supermarket, Boutique, Drugstore, Department Store

Price
Discounter, Second-Hand shop, factory outlet, duty free shop

32
Q

Types of retail

Differentiation by “sales policy”

A

Specialist Store
Specialist Market
Supermarkets, Hypermarkets
Discounter

33
Q

Industry developed channel concepts (3)

New channel approaches

A

Verticalisation
Factory outlets, flagship stores, franchise systems, Rack Jobbing, shop in shop

Direct Sales
online sales, vending machines, door-to-door sales

New Sales Channels
gas station, post offices, train stations

34
Q

eShop of a PRODUCER

chances / problems

A

chances:

  • limiting channel power
  • expanding available market
  • enhancing gross margin (reducing channel costs)

problems
- irritation of resellers (loss of commitment, turnover, etc.) - handling volume

35
Q

eShop of an (existing) RESELLER

chances / problems

A

chances:
- attracting customers by different channels (for information, buy, payment, pick-up, service, etc.) - increasing customer base

problems:

  • irritation of end users (inconsistencies between channels)
  • eShop might cannibalize stationary store
36
Q

eShop as a (new) RESELLER

chances / problems

A

chances:
New business models possible without regards to existing business

problems:

  • one under thousands
  • getting good products
37
Q

the different views of producer and dealer

PRODUCER’s targets (3):

A

increasing turnover
increasing number of customer
increasing customer loyalty

38
Q

the different views of producer and dealer

DEALER’s targets (3):

A

increasing turnover
increasing number of customer
increasing customer loyalty

39
Q

Evaluation criteria of a new supplier:

A 
◊ turnover, margin, profit
◊ costs (initial, on-going)
◊ (additional) resources?
◊ image value?
◊ „easy selling“?
◊ post-sales problems?
40
Q

strategic decision for a sales partnership (6)

view of the sales partner

A
  • Management commitment of the producer
  • Product offer
  • Sales strategy
  • Sales partner program
  • collaboration
  • Sustainability
41
Q

Reasons for partner recruitment

A
  • Setting up a new sales channel
  • Setting up a complementary sales channel
  • Enlarging the existing partner base
  • Compensation of a lost partner resources
42
Q

Process of partner recruitment

A
  • define criterias
  • systematic search
  • contact
  • sell the partnership
  • contract
43
Q

Partner performance (4)

A

Loyality - Commitment - Management - Success Measure

44
Q

Partner loyalty arises…

A

from economical advantages and emotional effects

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