Session 13 Delivering Value

Question 1

Channel functions need __

Answer 1

Information and logistics

Question 2

Information component to the channel function is about:

Answer 2

Primary (educating on how to use the product)

Comparative (comparing relative to other features / products)

Question 3

Logistics component to channel functions include:

Answer 3

Product variety
Convenience
Waiting time
Lot size (min order)
Financing
Before and after sales transaction

Question 4

Channel Length

Answer 4

Information and logistics
Direct vs indirect selling

Matrix of these things. Length is high for direct selling where info is needed and indirect selling where logistic is needed

Question 5

Channel breadth

Answer 5

Channel nitrile vs shopping effort
Wide (intensive) vs narrow (selective)

Breadth is narrow when need for control and shopping effort is high

Question 6

Channel conflict is driven by:

Answer 6

Role conflict - unclear responsibilities

Goal conflict - different goals between distributor and manufacturer

Perception of reality: differing views between sides on success of the product

Question 7

Channel power is driven by:

Answer 7

Reward power (incentives and kickbacks)

Coercive power: eg size of Walmart

Expert power: access to specific insights can be shown

Question 8

3 criteria to evaluate channel:

Answer 8

Cost
Control
flexibility

Question 9

Soren case takeaway

Answer 9

No incentives from retailers to push this

Consumer awareness was low (didn’t get economics or actual benefit of product)