Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Marketing Management > Chap 10: Distribution channel > Flashcards

Chap 10: Distribution channel Flashcards

1
Q

Distribution channel

A

The process of making products/service available for business units and customers that need it.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Distribution channel (Kotler & Keller)

A

A set of interdependent organizations participating in the process of making the product/service available.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Three types of distribution channels

A
  • Merchants: Wholesaler & Retailer
  • Facilitators: Transportation companies, banks, warehouse, advertising agency, etc.
  • Agents: Broker, sales agent, manufacturers
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

To manage marketing channels management, three requirements include:

A
  • Economics: managing resources/cost to achieve targeted ROI.
  • Coverage: optimize exposure availability and access by customers to the proposition.
  • Control: achieve optimum performance in all aspects of mix, targeted cost and goals.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Marketing channel strategy needs to make 3 decisions

A

Direct, Indirect and Multichannel

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Indirect channel include

A
  • Market coverage: intensive, selective or exclusive
  • Channel members: numbers and types
  • Managing relationships: trust and channel conflict
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Marketing “flows” for Forklift Trucks

A

Forward flow (physical, title, communication), Backward flow (payment) or both directions (information)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is push strategy?

A

It is used for low brand loyalty. Product is an impulse item and product benefit is well understood.
Brand choice is made at the store,

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is pull strategy?

A

It is used for high brand loyalty and high involvement category, with consumers can perceive product’s differences.
Brand choice is made before going to store.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Channels-design decisions include 3 steps

A
  1. Analyze customer needs and wants
  2. Establish objectives and constraints
  3. Identify and Evaluate major channel alternatives
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Criteria to evaluate the major channel alternatives

A
  • Product
  • Market
  • Producers
  • Competitors
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

6 different sales channels for selection

A

Internet > Telemarketing > Retailers > Distributors > Value-added partners > Sales force

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Conventional marketing channel

A

Consists of independent producer, wholesaler and retailer. Each is a separate business seeking to maximize its own profit. No channel member has control over other members.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Vertical marketing system

A

Consists of producer, wholesaler and retailer acting as a unified system. The channel captain owns or franchises other members or has so much power that they all cooperate.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Three types of VMS

A

Corporate, Administered and Contractual VMS.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Corporate VMS

A

combines successive stages of production & distribution under one ownership.

17
Q

Administered VMS

A

coordinates successive stages of production & distribution through the size and power of one of the members.

18
Q

Contractual VMS

A

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

19
Q

Three types of contractual VMS

A

Wholesaler-sponsored voluntary chains, Retailer cooperatives and Franchise organizations.

20
Q

Implication of VMS

A

Serving 70% of consumer marketplace, VMS creates new competition in retailing by threatening bypass large manufacturers that set their own specialty stores.

21
Q

Horizontal Marketing Systems

A

Unrelated companies put resources together to exploit the market.

22
Q

Why Omnichannel? (Brynjolfsson and Rahman, 2013)

A
  • Retailers used to rely on barriers such as geography and customer ignorance to advance their positions in traditional markets.
  • Yet, technology diminished the barriers and changed the customer behaviour and preference thanks to: location-based app, availability of product and price information, ability to shop online and pick up at local store, etc.
23
Q

Strategies for Omnichannel (Won Briel, 2018)

A

Increase customer touchpoints by improving technology in the field of in-store experience, online shopping environment, cross-channel integration.

24
Q

Multi-channel benefits

A

Expand market coverage, Increase customer satisfaction, Reduce channel cost.

25
Q

Multi-channel limitations

A

Control and operation problem, Channel conflict, Customer confusion

26
Q

Reasons for channel conflict (Webb, 2002)

A
  • Goal incompatibility between channels
  • The difference in domain: population to be served, territory to be covered, function/task to be performed, technology to be employed
  • Different perception: poor communication between channel members.
  • Intermediary’s high dependence on manufacturers
27
Q

Channel conflict management strategy (Webb, 2002)

A
  • Pricing: suppliers price at website not lower than their partners.
  • Place: allow placing orders on website to their channel partners.
  • Product: limited offering on website, unique brand name for product, put high-demand product early on website
  • Promotion: provide product info with no order taking on website, promote channel partners, encourage partners to promote on their website.
  • Communication and coordination: how firms communicate/coordinate their overall distribution strategy
28
Q

Channel conflict

A

is a situation in which one channel member perceives another channel member(s) to be engaged in behavior that prevents or impedes it from achieving its goals

29
Q

Benefits of multi-channeling in the age of E-commerce

A
  • Adaptation to customer’s needs and shopping pattern.
  • Firms with excess capacity manufacturing can market at unsaturated channels.
  • Better focus on target market due to the personalized shopping experience
  • Provide a variety of product lines and price comparison.
30
Q

Benefits of intermediaries

A
  • Improved efficiency: reduce exchange complexity
  • Time, Information, Ownership utility
  • Accessibility
  • Product assortment
  • Specialist services
31
Q

Limitation of intermediaries

A
  • Loss of operational control

- Risk of products unbiased by channel partners

32
Q

Challenges for Omnichannel (Von Briel, 2018)

A
  • Balance e-commerce with traditional stores
  • Implement real-time inventory management across channels.
  • Repurpose the resulting surplus retail space
  • Personalise the customer experience across channels
  • Adjust the organizational mindset and developing human omnichannel skills
  • Integrate all functions through cross-departmental collaboration.
  • Ensure private and secure information and data.
  • Managing the constantly increasing breadth and growth of product varieties

Marketing Management (10 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions