Lecture 9 Managing Distribution Channels

Question 1

Agent

Answer 1

Brokers, sales agent but dont take ownership the product themselves

Question 2

Facilitator

Answer 2

advertising agency, v…v dont take ownership

Question 3

Which is the most and the least flexible in 4Ps?

Answer 3

Distribution channel is the least flexible while pricing is the most flexible

Question 4

Why are marketing distribution channels important?

Answer 4

 Successful value creation needs successful value delivery, therefore distribution channel decisions are important.
 Channels need to be carefully designed and managed. They should aim for channel co-operation but channel conflict can arise and needs to be minimised.
 Distribution channels do not stand still as new channel systems evolve. Many organisations now operate in a multichannel environment which has benefits and drawbacks.
 Retailers now strive to compete in an omnichannel
environment bringing together the physical and digital
aspects of customer experience in a personalised manner

Question 5

upstream parrner

Answer 5

expertise, consultant etc

Question 6

downstream partner

Answer 6

wholesaler and retailer

Question 7

Push and pull strategy

Answer 7

Push strategy: the producer target the wholesalers, wholesaler target the retailer, retailer target consumer, all by promotional activities
While pull strategy means the producer directly target the customer by promotional activities

Question 8

What r the gaps between production and consumption?

Answer 8

• Time
• Space
• Quantity
• Variety
  => Intermediary r used to bridge the gaps

Question 9

Channel Member Functions

Answer 9

• Gather information on customers, competitors, suppliers etc.
• Develop and disseminate persuasive communications to stimulate buying.
• Negotiate and reach agreements on price and other
contractual terms to transfer ownership/possession.
• Place orders with manufacturers.
• Acquire funds to finance inventories.
• Assume distribution-related risks.
• Provide for successive physical storage and transportation.
• Provide for buyers’ payment of bills.
• Oversee actual transfer of ownership from one
organisation/person to another.

Question 10

Channel Design Decisions?

Answer 10

 Analyzing customer needs and wants
 Desired lot size
 Waiting and delivery time
 Spatial convenience
 Product variety
 Service backup

Question 11

Terms and responsibilities of channel

members

Answer 11

 Price policy
 Conditions of sale
 Distributors’ territorial rights
 Mutual services and responsibilities

Question 12

Multi-channelling benefits n challenges

Answer 12

Benefits
 Aids adaptation to changing customer needs & buying behaviour
 Suits broad product lines
 Additional outlets for excess manufacturing capacity
 More precise targeting
Challenges
 Competing demands on internal company resources
 Inter-channel rivalry
 Intermediary dissatisfaction
 Customer confusion

Question 13

Geofencing?

Answer 13

geofencing

Question 14

Omnichannel retailing

Answer 14

◦ Multiple channels work seamlessly together and
match each target customer’s preferred ways of
doing business to create a differentiated and
personalised experience
◦ Calls for integrated marketing channel system