week 20 Flashcards
what are disributio/marekting channesl
set of interdependent organisation that help mamke product avalaible for use/consumption by consumer/bs user
what are the 2 types of marketing chnnels
direct distributino
indirect distributio
what is direc tdistribution
producer to end user
what are the 4 stages of the marketing channes
producer
wholesaler
retailer
end user
what are the 5 types of flows in mkting channels
physcial flow
flow of ownership
payment flow
information flow
promotion flow
what is phsycial flwo
journey from manufacturer to shelves and fro shelves to consumes
waht is flow of owneship
who carries repsonsiblty for products ,
financial risk and repsonsibilies
who will pay for damages and insurance
what is payment flow
how studfd paid for ?
more retiler - more expensive as every retailer/middle man adds a margin on top
we can say direct distribution can reduce payment flow
what is information flow
when consumer buy certian types of things - this can generate info about consumer and demand in mkt
info needs to make way back to producer info goes back through channel to reach manufacturer
what is promotion flow
adv ,mkting
responsibility of utting out adv and sales promo
need to be regulated and demarcaref
affects price control too
what are the two types of conflicts in marekting channels
horizontal
vertical
the mor elements added in distrbuition channel the more likely
conflicts are to occur
what is horixontla conflict
conlict that is at same level - e..g retailter v retailer
2 shops nearby - one decreases price - cosnuemr sswitch and decrease from other stores customers
producer may ned to interven
verticla distribution
happena t diff elvel between two reps of distribution channel
can be 2 going at it or more
e.g.retailer v producer
franchise angry at mcdonals for new rules as affects customemr service
waht is direct sellign and waht is it aka
producer to end user
consumers also selling to otehr consumrs
direct to consumer
give exape direct distribution
apple selling from apple store
what is ratinoal for intermediaries
sometimes cannot have direct acces to some whole saler
for every individual item if you had to go to every singe seller v complicated for consumer
what do retailers do
primarily sell goods and service directly ro dinal consumer for peronsla uses
who do wholesalers sell to
primarily sell to other firms who are buying for resale or business use
what do wholesalers often buy
large quanity of products directly from proucer
who/wheredo wholesalers operate
beind scence and largelyt unkow to customer
wholesaler opreate between who
producer and retailer
what are limited line / speciality stores/category killers
selling wide range of a type of product
meaingn less profitable and feasible for dpt stores and general stores to sellprodcu
e,g, schuh
toys r us
what id the diff between supermarkets and super stores
market - in cities
stores - outside of cities
whatr are th 3 types of ecomomerce
web aggragtors
web speilaists
web direct
what are web aggregators
department stores sellign wide range of product
e.g. amazon and ebay
what are web specialists
just sell one type of thing
e,g, asos
waht is wev direct
direct distributino - sell irectly ro consumer e.g. alibab
why would aband use catlaogues and mail/phone orders
a way of selling that fits consumers
what is a hybrid retial store
introducing tech into stores
e.g virtual try ons
scan qr code and get indor about product ingerdients
what is an ominchannel store
selling through many diff ways
e.g retailers , directly ,
mixing digital w phsycoal selling
3 typees of distributino intentsity
intensive
selective
exclusie
what is intensive distribution intensity
5/7 main points
higher reach and higher cost
widespread market coverage
widely accepted channel
diversity of outlets
multiple locations
convenience orientated
want you as a producer to have access to as many points of sales as possible
with intesive distribution intensity as a producer what dod yuo want to have
access to as many points of sales as possibel
what si less important in intensive distrinution
customer service
give example of distributino intensity product
dairy milk choclate bar
what is exclusive distribution intensity
higher control, better customer support
important channel for strong brands
image focused channel
control over commm , service and price
few channel locations
emphasis on experience
why do we care about customer support in exclusive distribution
want to eb in contorl of promo and custimer service
why do we go for exclusive location in exclusive distribution intensity
we asuuming dont need to be clsoe to customer as trhey can and are willing to travel
what is selective distributino intensity
in the middle of intensive and selective
what is selective distribuion intesnity
moderate market coverage
well established channels
less generic format than intense channels
moderate number of outlets
consumer shodl be willing to travel to store
selective distribution is well suited for what type of product
shopping products - modeate level of involvement
what do we identify with selective distribution and why
zones cnsumer may eed to acccess goods - to allow for travel ?
what is webrooming
lookign something wanna buy online then buying in shop
from web to room
e.g. shoes
what is showroomign
looking at somethign wanna buy in shop then later buying it online , usually at a lower price
from the show to the room
e,,g tv , electric , home appliances
what products would we use for showrooming
shopping o medium levle of engagmer
for convenience - sue ot to ompare
why is showrooming uncommon w luxury/speciality products
as consmer expeirnce matter, we vlaue the experuience
we dont just lok for chapreest price
