Chapter 9 COMPLETED

Question 1

4 important considerations for channel proposition (SPRB)

Answer 1

Sales growth
Profitability
Return on capital
Brand leverage

Question 2

Channel mapping

Answer 2

A diagram of the types of purchase points a business uses - different channels have different levels of sales and productions

Question 3

Types of channels

Answer 3

B2B and B2C
Distributors
Value-add resellers (VAR)
Consumer retailers
Direct sales
Telemarketing
Sales reps
Agents
Wholesalers
OEM (original equipment manufacturers)

Question 4

3 components to channel performance (COS)

Answer 4

Customer reach (volume)
Operating efficiency (cost to serve)
Service quality (retention)

Question 5

Digital marketing channels

Answer 5

Most potential for expanding customer reach is the digital marketing channel. Has the ability to reach a world of prospective customers at a low marketing cost

Question 6

Direct vs indirect channels

Answer 6

Direct = higher margins, channel management costs
Indirect = lower margins, no personal channel management costs

Question 7

3 components of product performance to consider in selecting marketing channel (PQ, PA, PF)

Answer 7

Product quality
Product assortment
Product form

Question 8

3 components of service quality to consider in selecting marketing channel (AS, AD, TS)

Answer 8

After-sales service
Availability and delivery
Transaction services

Question 8

3 other considerations in selecting marketing channels apart from product performance and service quality (BR, CI, CE)

Answer 8

Brand reputation
Managing customer interactions
Improving cost efficiency

Question 9

3 competitive advantages in marketing channels (SSD)

Answer 9

Sales force advantage
Sales productivity
Distribution advantage