Lectures 10A and 10B (extra reading needed) Flashcards
What are the external decisions need to be considered for setting up a distribution channel
Customer characteristics
Nature of the product
Nature of the demand
Competition
Legal Regulation
What are the 3 internal decisions need to be considered when discussing the distribution channels
Decisions concerning the structure of the channel
Major decision choosing a mix of distribution channels
Managing and controlling the decisions
What does distribution involve?
Distribution involves activities that make products available to customers when and where they want to purchase them
What are the factors in which determine whether someone can buy a product
If the product is in adequate quantities
In a convient location
At a time the consumer wants to buy
What does a marketing channel enable
Create utility
Possession
form
Facilitate efficient exchange
Reduces costs
reduces transactions
What is the order/reorder point
The amount which products will be restocked - note that the consumer will
What are the 3 market coverage strategies
Exclusive
Selective
Intensive
what are the 5 types of flows in a distribution channel
Physical flow
Title flow
Payment flow
Information flow
Promotional flow
what are the 3 types of integration in a marketing channel
Vertical integration
Horizontal Integration
multichannelintergration
What are the 4 factors which effect the structure of the distribution channel
Market coverage
Distribution length and width
Control costs
Degree of integration
what is exclusive market coverage
selecting one intermediary in a specific region
What is Selective market coverage
choosing a number of intermediaries for each market to be penetrated
What are control costs
the control of one member in the vertical distribution channel it’s ability to influence the decisions and actions of other channel members
What are the factors which influence channel width
product type
product lifecycle
Price
Brand loyalty
Purchase frequency
Product Uniqueness
Selling requirement
Service requirement
Technical complexity
what are the functions of an Intermediary
Carrying of inventory
Demand generation or selling
Physical distribution
After-sales service
Extending credit to customers
how is integration achieved
Acquisition or light-ownership
what are reverse flow-channels
when the products useful life ends or someone doesn’t want it anymore
What is Dual Marketing
same product is being sold to the consumer and the market at the same time
What is cross-channel distribution
Partyis left behind and distribution channels start to coordinate
What is omnichannel strategy
Goal is to deliver a seamless experience for the customer to better engage him or her
What is an example for multi-channel distribution strategy
Dell
What are the advantages for multiple distribution channel strategies
Extended market coverage and increased sales volume
If suppliers can avoid direct price comparison across channels through they can charge higher prices through some channels
Lower absolute or relative cost
Better accommodation of customers evolving needs
More and better information
Disadvantages of multiple channel distribution strategies
Coordination of prices across channels costs extra resources
Coordination of products offered to different channel members (with different needs and requirements) costs extra resources
Loss of distinctiveness Increased organisational complexity
what are the 5 factors which are included in managing and controlling distribution channels
Selecting intermediary
Contracting
Motivating
Controlling
Termination
What are the types of channel conflict
Vertical channel conflict
Horizontal Channel conflict
Multi-channel conflict
What are the strategies for managing channeling conflict
Strategic Justification
Dual compensation
superordinate goals
Diplomacy
Co-optation
Employee exchange
Joint membership
how have digital channels made consumers more demanding
digital channels have connected buyers and sellers globally
Expect seamless integration
Customers want the advantages of both physical stores (personalized services) and digital (Vast selection
Expect seamless integration between the two channels
wants customer support
Check online for product availability
return a product purchased from a nearby store
What does digital channels provide in international markets
provides opportunities for interactive shopping in international markets and allows more contact with the consumer
What does digital channels enable
SME’s to access niche markets due to traditional market channels being to expensive
Internet offers direct contact with the consumer base throughout the globe
establishes infrastructure in foreign countries
what are the favorable international market characteristics for digital channels
Ineffencies in traditional distribution channels
Market fragmentation
Minimum Scale barriers
enables distribution of commodity and short-lifecycle products
What are the two types of E-commerce companies
Pure clicks
Clicks and Bricks
what are pure clicks
Companies who have launched a website without any previous existence as a firm
what are the examples of a pure click companies
Search engines - Google
Transaction sites - Ebay
Content sites - Netflix
Enabler sites - booking.com
What are the success factors for a pure click company
Security and Privacy
Fast delivery services
Good customer services
Avatars
fast, simple and easy to use websites
personal interaction
Easy returns
What are Bricks and clicks companies
Existing companies that have added an site as a channel for sales and/or distribution
what are the strategies which can appease intermediaries whilst integrating a digital channel
Offer different products online and offline
Offer offline partners higher commission
Take order online but allow retailers to manage delivery
what is an example for successful integration with physical and digital channels
Harvey Davidson
why is logistics important for an organization
impacts the brand image from efficient services
Marketing strategy should be enhanced by logistics
What are the marketing objective for logistics
Getting the right goods to the right place at the right time for the least cost
what does consumer behavior suggest about logistics
Consumers would rather consistency than failed promises
what are the 4 main logistic processing decisions
Order Processing
Warehousing
Inventory
Transportation
