Marketing Channels Flashcards
Explain the paper:
Chakravarty, et al (2014). Customer orientation structure for internet-based b2b platform firms
Summary:
The paper is about how businesses buy and sell things to each other online. It talks about two different ways this can happen: one where there is a common buyer and one where there isn’t. The paper looks at how these different ways affect how well the businesses do. They did a survey of 109 businesses to find out how they were doing and what they were doing to be successful. They found that it’s important for these businesses to focus on making both buyers and sellers happy, and that it’s harder to do this when there isn’t a common buyer. They also found that it’s important for these businesses to have a lot of buyers, but not too many sellers.
Buyer/seller concentration:
* Concentration leads to dependency
* Powerful buyers/sellers might demand special treatment
* The platform can alter quality of service, infrastructure, transaction experience or switching costs
Customer orientation:
* Total orientation: Customer and seller combined
* Asymmetrical orientation: One side is favoured over another. Balancing dependency
* Understand, serve and satisfy:
a. Intelligence generation
b. Intelligence dissemination
c. Responsiveness
Explain the paper:
Gill, et al (2017). Return on engagement initiatives- A study of a business-to-business mobile app
Summary:
The study focuses on a specific mobile app designed for business-to-business interactions and aims to understand how these initiatives foster emotional and psychological bonds between customers and the firm. The authors conducted a survey-based study with 202 business customers who used the mobile app and found that engagement initiatives positively impact customer satisfaction, loyalty, and willingness to recommend the firm. The study also highlights the importance of emotional and psychological bonds in business-to-business interactions and provides insights into the design and implementation of effective engagement initiatives.
Findings:
* Increased revenue: 19.11 % - 22.79 % against nonadopters
* More projects lead to more profits/sales Reduced customer uncertainty
* Traditional measures for RoEI have been customer visits and attitudes
Engagement initiatives:
- Not sales directed
– Aim for strong relationships through engagement
- Create new customer touch points/information channels
Refer back to the B2B engagement elements of Helpful, Relateable and authentic
Explain the paper:
Käuferle, M. and Reinartz, W. (2015). Distributing through multiple channels in industrial wholesaling: How many and how much?
**Summary: **
The paper is about the challenges faced by managers in determining the most efficient route to distribute products in industrial wholesaling. The authors analyze the drivers of distribution intensity and its impact on performance, considering factors such as the variety of channels and the degree of channel usage. The study reveals that firms align their distribution intensity to their individual context, leading to efficient intensity levels. Additionally, the results highlight the importance of considering the complexity of products and the customer base when determining distribution intensity.
What types of Marketing channels are there?
When should B2B companies choose indirect and direct marketing?
Direct Marketing:
* Complex or customized products
* Large customer base
* Unique value proposition
Indirect Marketing:
* Broad market coverage
* Lack of resources or expertise
* Geographic reach
Explain:
Marketing Flows
Why is it challenging choosing the right marketing channel?
- The alternatives are numerous
- Marketing goals and priorities differ between channel members
- Segments vary which may require numerous channels concurrently
- Customer requirements and business environments constantly change
- Technological change is changing opportunities and requirements
Therefore marketing managers face two ongoing tasks
* Designing marketing channels (structure)
* Managing the marketing channel
What are the two types of intermediaries?
Distributor
* Trade under their own name
* Take title (and carry inventory) for the products they sell
* Provide credit, deliver, offer an assortment, offer technical skills, maintain customers and find new ones
* Considerable freedom in decision-making regarding sales and marketing
* Exclusivity or non-exclusivity
Agent
* Trade on behalf of the manufacturer
* Do not take title nor hold inventory
* Are normally paid commission
* Often relatively few customers or concentrated geographically or in few industries
* Exclusivity or non-exclusivity
Name some Multi-channel challenges
Integration between different channels, in particular online and ‘traditional’ channels
* Which products should be sold online?
* Cannibalization of ‘traditional’ channels?
* Risk of unhappy customers, if channels are poorly integrated
Allocation of tasks and responsibilities across different channels (who does what?)
* Channel members may worry about being bypassed, e.g. because of new online channels
* Tasks must be allocated so as to promote cooperation, not conflict
Handling of conflicts
* Do channel members perceive the job as a zero-sum game?
* Incentives that promote cooperation
What can you say about intensity of distribution of the Value chain?
Traditional: Mass coverage, selective or exclusive
Variety of channels: Number of distinct channels offered for transactions
Degree of channel usage: Degree to which a firm allocates resources to all distribution channels included in the respective multi channel system, to provide easy access
Describe the Value Chain model
Value drivers:
- Economies of scale = low cost
- Differentiated product
Describe the value shop model
Value drivers:
- Learning and knowledge
- Status and reputation
Describe ROEI
Return on Engagement Initiatives (RoEI)
RoEI refers to the measurement of the economic benefits generated from engagement initiatives, which are indirect in nature
Describe the Value network model
Value drivers:
- Size = network effects
– Infrastructure and transparency
Explain the difference between conventional and platformbased B2B exchange
- In a conventional B2B supply chain, there is a vertical chain consisting of an upstream manufacturer, an intermediary distributor (or dealer), and a downstream buyer or end customer (e.g., a small business). The interests of the manufacturers and distributors are aligned because they serve the needs of a common buyer 4. The distributor manages the relationships with the upstream seller (manufacturer) and the downstream buyer as two distinct dyadic relationships
- Platform-based B2B exchange, there is no common buyer for all the involved parties, which makes interest alignment inherently challenging 4. The platform acts as an intermediary, connecting buyers and sellers, but there is no direct interaction between the manufacturer and the buyer 4. Instead, the parties transact with the intermediary distributor
- The key differences between conventional and platform-based B2B exchange lie in the presence of a common buyer, the management of relationships, and the direct interactions between buyers and sellers
