Placing strategy

Question 1

How do channel members add value?

Answer 1

Help to complete transactions & fulfil completed transactions

Question 2

Information

Answer 2

Refers to gathering and distributing information about consumers, producers, & other forces in the marketing environment.

Question 3

Promotion

Answer 3

Refers to developing and spreading persuasive communications about offers.

Question 4

Inventory management

Answer 4

Refers to matching inventory levels with market demand.

Question 5

Negotiation

Answer 5

Refers to reaching an agreement on price and other terms so that the ownership can be transferred.

Question 6

Physical distribution

Answer 6

Refers to transporting and storing goods.

Question 7

Financing

Answer 7

Refers to acquiring & using funds to cover costs of channel work.

Question 8

Risk taking

Answer 8

refers to assuming the risks of carrying out channel work.

Question 9

List down the steps of Channel Design Decisions

Answer 9

1. Analyzing consumer “service” needs.
2. Setting channel objectives & constraints.
3. Identifying major alternatives.
4. Evaluating the major alternatives.

Question 10

Analyzing consumer “service” needs.

Answer 10

When it comes to buying products, customer desires:
Convenience in terms of accessibility, seamless processes, ease of payment

Extensiveness of product range in terms of variety, depth

Speed of delivery

Quality of service

Question 11

Setting channel objectives & constraints.

Answer 11

Company to identify:
Customer segments to serve.
Best channels to reach these segments
Company & competitor considerations such as company size, nature of products, competitors strategies

Question 12

Identifying major alternatives.

Answer 12

Intensive distribution. For convenient products. As many retailers as possible.

Selective distribution. Comparison deliberation of products. Easy for customers to buy while at the same time, it’s not as extensively available or widespread as the convenience goods. More than one retailer but fewer than intensive.

Exclusive distribution. For specialty / prestigious products. Luxury brands selling their products only through their own boutique store to portray an image of exclusivity. Limited retailers.

Question 13

Evaluate major alternatives

Answer 13

Economic conditions
Adaptability
Control

Question 14

Channel Management Decision

Answer 14

1. Selecting
2. Managing & Motivating
3. Evaluating & Feedback

Question 15

Selecting

Answer 15

Extent of experience, profitability, product lines, reputation, cooperativeness to decide on partnership.

Question 16

Managing and Motivating

Answer 16

Jointly plan advertising, promotion, incentives, sales training and remuneration schemes.

Question 17

Evaluating & Feedback

Answer 17

Evaluate against (predetermined) agreement metrics , such as sales, growth potential, level of customer service rendered.