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Channel Marketing > Management Module > Flashcards

Management Module Flashcards

1
Q

What is Retailing?

A

Selling goods or services to the end customer

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2
Q

Define Channels of Distribution!

A

Chain of Organisational Actors & Relationships through which goods & services are delivered from producers to consumers

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3
Q

What are the (5) types of flow in a Marketing Channel?

A

(1) Physical Goods
(2) Titles aka Prop.Rights
(3) Payments
(4) Information
(5) Promotion

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4
Q

What are the (5) types of actors in a Marketing Channel?

A

(1) Producers
(2) Wholesalers
(3) Jobbers (Small wholesalers with specific products)
(5) Retailers
(5) Shoppers
(6) Agents (Do not take title, paid on commission for deal facilitation)

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5
Q

What is a Marketing Channel?

A

A marketing channel consists of the people, organizations, and activities necessary to transfer the ownership of goods from the point of production to the point of consumption

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6
Q

What is the tendency of a channel towards?

A

To increase efficiency! A channel over time should become more streamlined and efficient. Reduce contacts, and transactions and speed up delivery!

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7
Q

Value Delivery Dimensions, please Name & Explain the four

A

(1) Time Value (When the customer needs it)
(2) Place Value (Where the customer needs it)
(3) Ownership Value (Channel grants access to product for occasion of usage: Coinbase allows storage of your purchased coin in your wallet)
(4) Tailoring Value (Refine to suit needs)

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8
Q

How has COVID changed retail?

A

Strong ECommerce growth, and overall significantly reduced trade volumes.

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9
Q

Please name the (5) Mega Trends

A

(1) AI & Machine Learning
(2) Penetration of AR
(3) Rise of social media as a touchpoint
(4) Tailoring value perfectly
(5) CSR importance growth

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10
Q

Define: Store Format

A

Appearance and feel of the marketplace. Determined by attributes like: image, layout, to the product range on offer.

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11
Q

Name 4 Brick & Mortar store formats; and break down their attributes!

A

Stores:
Department // Discount // Convenience // Supermarket // Specialty

Dimensions:
Size, location, Assortment, Prices, Hours and Ambience

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12
Q

Describe the store format: “Specialty Store”

A

Small retailer (<5000ft), such as a coffeeshop. Selling a small bredth, but high depth of products (30 types of weed and hasj, but nothing else). Nice ambience, regular opening hours, higher service quality from the expert grassman makes it a little more premium than your neighbourhood dealer.

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13
Q

What is the key Attribute that sets Supermarkets apart from Hypermarkets?

A

Location! (central vs hubbs)

Square meterage! Hypermarkets are >20000ft

Products
Hypermarkets sell more non food too

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14
Q

What are common Online Retail Formats?

A

General Marketplaces (Alibaba, Amazon). Aims to be one stop shop.

Auction Marketplace (Craigslist & Ebay). Huge variety, no titles

Social Media
network effects rule

Unique Items Marketplaces
(Gamestop.com)
The online Specialty Store. Scale allows these to broaden the range on offer

Subscription Box
Tailored value recurrent offering

Deals Daily
(Groupon)
Off price retailer on the internet

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15
Q

Draw the (1) Retail Marketing System vs the (2) Consumer Marketing System. What is the difference?

A 
_Prod\_\_
2    |       -       |    1
      |       -       |
Customer    Retailer
      |\_\_\_\_\_\_\_|

In 1) Retailer Marketing: Retailers spend to increase store visits, customer loyalty, and shopping experiences. Otherwise *2) producers do this directly

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16
Q

Describe the (4) phases which occur in (Retail Marketing) Strategy setting

A

Retail Marketing process
(1) Analytics
Analysis of Macro & micro

(2) Strategic Moment
Segment, target, position

(3) Operating Moment
Services, Assortment, Price, Communication

(4) Control Moment
KPI achieving

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17
Q

Retail Marketing: Please explain “Macro Analysis”

A

Retailers research: (PESTLE)

  • Political
  • Economy
  • Society and Culture
  • Technology
  • Location, and area demographics
  • Etc

Factors impacting business decisions post market-entry

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18
Q

Retail Marketing: Please explain “Micro Analysis” (3)

A

Elements of Micro Analysis:

-Competition
(Competitor Analysis, share of wallet)

-Market Demand
Quantitative (Overall, channel -, format -, and category demand). Qualitative (Shopping behavior, customer journey frictions & opinions)

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19
Q

Name (4) Retail Trends!

A
  • Market Liberalisation
  • Business Globalisation
  • Inflation Minimalisation
  • Sector Convergence
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20
Q

Name (4) Key Retail Challenges affecting Consumer-facing businesses?

A
  • Understand Customer Journey (How did they hear about us, did they enjoy buying from us, how was their after sales…)
  • Master Bargaining Power (In Italy they use buying groups for this)
  • Private Label Leveraging (More and more marketplaces have own products)
  • Lead through Technological Innovation (DATAAA)
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21
Q

What are Zara’s (2) Main Competitive Advantages?

A

Time to Market (4 weeks vs industry 6 months), Market Responsiveness (Quick demand response)

22
Q

Which Front End and Back End competencies unlock Zara’s Competitive Advantage?

A

Front End: Use of: Place (Highstreet), Product (high variety, quality) , Value (pricing model, trend sensitivity)

Back End: Information System, Logistics,

23
Q

How do we compare Retail Formats through KPIs?

A

Ratios!

  • Gross Margin Return on Labour,
  • Gross Margin Return on Footage,
  • Gross Margin Return on Inventories
24
Q

Please Define and Explain the (8) functions that occur in the channel [“Channel Functions”].

Think of Channel Functions as all those activities that the Channel Actors undertake.

A
  • Distribution: move goods
  • Contact: Find & communicate with buyers
  • Promotion: Disseminate information about offers
  • Matching: Fit buyer needs (a pallet or a single)
  • Negotiate: Reach agreements on price & terms
  • Finance: Assume risks of channel work, pay suppliers when, and when to change customers
  • Information: Provide into about market actors & trends
25
Q

What are the (3) Types of Normative Channel Goods?

A

Necessity Goods (Potato.)

Normal Goods (Positive income:demand relationship) (Pasta)

Griffith, aka Luxury Goods Positive demand correlation with price (Watches)

26
Q

What is the difference between Experience goods and Search Goods?

A

Experience: Convince by emotion (holidays)

Search: Objective comparison convinces (potatos)

27
Q

What are common Wholesaler Services?

A

To Manufacturers: Scale production facilitation, bulk storage, risk protection, financing (Hi Ted, okay, yeah I’ll buy your whole batch)

To Retailer: Supply of different goods, Storage, Financial assistance (Hi Dan, sure, you want one of everything?)

28
Q

Outline the challenge of Cross Channel Competition

A

Coordinating and integrating of content is the #1 challenge to omni-channel marketing managers. How do we get customers to use our services everywhere, all the time, and how do we ensure that if we sell a movie on Amazon, they haven’t seen it already on Prime?

29
Q

Stupid Question time: What is a Channel?

A

Channels are systems of actors and relationships that producers put in place to secure the availability of the merchandise where shoppers buy, the retail outlet(s).

30
Q

Whats the Difference between Marketing Channel and Supply Chain?

A

Marketing Channel: Emphasis on transactions, power, social exchange relationships. This approach looks for win-win rather than zero sum game.

Supply Chain: Emphasis on coordination, integration and operations. Operations here defined as logistics, procurement, and sales.

31
Q

Which of the 4Ps foes Channel Marketing concern itself with?

A

Place.

32
Q

Channel Processes: Indicate the (4) step process of creating value in marketing.

A

1) value analysis
2) value creation
3) value communication
4) value delivery

33
Q

What are the (3) elements of Channel Design?

A

1) Distribution Approach (degree of intensity)
2) Channel relationships (degree of integration)
3) Channel Structure (horizontal vs vertical)

34
Q

Distribution Approach: Outline and evaluate the (3) strategies

A

1) Intensive Distribution
All point of sale can get the product (max volume, mass-market). This saps control over marketing mix of product.

2) Selective Distribution
Control image by trade in managed environments. usually durable and high-quality goods. Sadly, volume suffers, and advertisement effectiveness suffers too.

3) Exclusive Distribution
Tightly managed, or proprietary channels. Luxury goods. Super controlled image, but low volume.

35
Q

In Distribution Approaches, which form of marketing [PUSH // PULL] works for which strategy?

A

Pull: [Intensive], Unilever marketed its LUX soap as desirable and customers begged supermarkets to stock it. Requires LOADS of advertising.

Push: [Selective/Exclusive] use of perceivable touchpoints “push” customers to the product. (Red Bull gets is own stand in gas stations for “Push”). Requires retailer incentives to sell.

36
Q

What are the Horizontal Channel Structures (Pillar of Channel Design)

A

Horizontal Structures are indicated by levels of intermediaries between Manufacturers and End Customers.

0 Level is D2C
1 has 1 reatiler
2 a wholesaler and retailer
3 WS + Jobber + Ret

37
Q

What are the (4) Vertical Channel Structures? Please explain the impact of lengthening the channel.

A

The degree to which the channel branches to indirect channels in Industrial Marketing Channels.

0 DTC
1 Industrial distrib. added
2 Manuf. Rep & Ind. Distrib,
3 A manufacturer’s sales branch, which uses A representative, and an industrial distributor

The longer the lower the effort, but the higher the loss of brand control.

38
Q

How are Horisontal and Vertical Channel Structures different?

A

Horisontal is to end customer, Vertical is to industrial Customer. This implies the use of very different intermediaries.

39
Q

Which (4) variables define the choice for customer facing (horisontal) retail format?

A

1) Service Requirements
(Is it SAAS, or is it apples?)

2) Customer Shopping Habits
(Where, how, how often are they shopping?)

3) Product Type
(Size, shape, duration of interaction, durability, perishability, cost)

4) Characteristics of Commercial System
(Japan? Use million intermediaries. The US? Use wholesalers & jobbers)

40
Q

In Channel Relationships, what is the key decision question?

A

Make or Buy? Invest in home made, or accept loss of control.

41
Q

Channel Designs must be….

A

Consistent with Positioning Strategy, and Coherent within its three dimensions!

42
Q

In Retail Strategy, what does the Business Model lay out?

A

Achieving and sustaining a competitive advantage.

Tool:
Business Model Canvas

43
Q

Which tactics imbue a sustainable competitive advantage, and which do not?

A

DO: (Sustainable)
Location, Cust.Loyalty, Cust.Service, Exclusive Products, Low Cost Supply Chain, Info System, Buying Power, Employee Morale

DO NOT: (Unsustainable)
Better Computers, More Employees, More Goods, Lower Prices, More Advertising, Cleaner Stores, More Promotions

44
Q

In Retail Strategy, How does segmentation work?

A

Group Shoppers (Demographic information) to infer Shopping Behaviour (WTP inferred). (Ex-Ante)

Or! Group shoppers on how they behaved (Ex-Post). Can be in store, or broader lifestyle.

Or! By attitudes, Survey them ask “what do you think about…” to distil characteristics

45
Q

What is Marketing?

A

Business Practice that Ensures: Customer Acquisition & Retention

46
Q

Store Positioning, which (5) attributes determine it?

A

1) Location!
2) Service Level
3) Product Lines
4) Relative Price
5) Organisational Approach (control)

47
Q

What are the two multi-channel strategies?

A

1) Multi-outlet & Multi-channel; multiple channels to buy (phone, web, store) and multiple outlets (other stores stock, own stores, wholesale selling, etc)

2) Multi Channel
Clothing company reached through direct, long and short channels.

48
Q

What drives conflict in Multi-Channel Strategy?

A

Objective, expectation and perception divergence.

If your app, and store do not gel then its not a coherent strategy, but it will depend on the threshold for conflict (dictated by competitors, customer expectations and your offering).

49
Q

In Multi-Channel Strategy, what are the (2) strategies one can pursue (example for each)

A

1) Product Differentiation (Different packaging for different channels)
2) Service differentiation (Offer a website: differentiates by longer hours, always close, direct information)

50
Q

Whats the difference between Multi-Channel and Omni-Channel?

A

Emphasis moves from opening multiple channels, to aligning these channels to support and the shopping experience start to finish.

51
Q

What is Channel Integration (in Omni-Channel)

A

Seamlessly move from device to device (to other channel), continuing customer shopping experience.

52
Q

What are (5) tactics in Omni-Channel deployment

A

1) Cross channel personalisation
2) Seamless check-in/out
3) Social integration
4) Omni-device access (channel integration)
5) Integrates support

Channel Marketing (2 decks)

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