Week 8 Flashcards
what is a marketing channel of distribution
a marketing channel consists of individuals and firms involved in the process of making a product or service
utility consumers receive
- form utility
- time utility
- possession utility
- place utility
types of functions by intermediaries
- transactional (buying, selling, risk taking)
- logistical (assorting, storing, sorting, transporting)
- facilitating (financing, grading, marketing information and research)
direct and indirect marketing channels
direct: producer to consumer
indirect: intermediaries are inserted
intermediaries: retailer, wholesaler, agent
dual distribution
a firm reaches a customer by employing two or more different types of channels for the same basic product
strategic channel alliances
one firms marketing channel is used to sell another firms product
vertical marketing systems
professionally managed and centrally coordinated marketing channels designed to achieve channel economics and maximum marketing impact
3 types of vertical marketing systems
- corporate (forward, backward)
- contractual
- administrated
factors affecting channel choice
- target market (density, points of difference, head to head)
- buyer requirements (information, convenience, variety, pre or post sale services)
- profitability (channel costs)
digital marketing channels
the products and service directly available to customer
channel captain + channel influence
channel member that coordinates, direct, and support other channel members
channel influence:
- economic: bisa reward others (strong financial position)
- identification: firm influence
- expertise: in inventory management or order processing
- legitimate right: power to direct the behavior of others
direct vs mutlichannel (omnichannel)
direct: customers buy products by interacting with various advertising media without face to face meeting with the sales person
multichannel: blending different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building
relationships with consumers who shop and buy in traditional intermediaries and online
building your marketing plan
- identify which channel or intermediaries provide best coverage of the target market
- specify which channel and intermediaries will best satisfy the important buying requirements
- determine which channel and intermediaries will be most profitable
- select your channels and intermediaries
disintermediation
a channel member bypass another member and sells or buy product directly
terms:
- middleman
- agent or broker
- wholesaler
- retailer
- distributor
- dealer
- middleman: between manufacturer and end user markets
- agent or broker: legal authority to act on behalf of the manufacturer
- wholesaler: sells to other intermediaries, usually to retailers,
- retailer: sells to customers
- distributor: perform a variety of distribution functions
- dealer: distributor, retailer, wholesaler, and so forth
contractual vertical marketing system
- wholesaler sponsored
- retailer sponsored cooperatives
- franchising (manufacturer sponsored retail, manufacturer sponsored wholesale, service sponsored retail, service sponsored)
target market coverage (density)
- intensive distribution
- exclusive distribution
- selective distribution
Potential for disagreements concerning:
- who performs channel functions
- how profits are distributed
- who will provide what products and services
- who makes critical channel related decisions
sources of channel conflict
- vertical conflict: between different levels of marketing channel
- horizontal conflict: between intermediates at the same level
logistics and supply chain
logistics management
- customer requirements
- flow
- cost effective
- customer service
supply chain
- supply chain management
- integration across firms
aligning a supply chain with marketing strategy
- understand customer
- understand the supply chain
- harmonize supply chain with marketing strategy
- total logistics cost
- customer service
- total logistics cost: includes expenses for transportation, inventory, materials handling, and more
- customer service: the ability to satisfy customers in terms of time, dependability, communication, and convenience
customer service factors
- time
- order cycle time
- replenishment time
- inventory delivery systems - dependability
- communication
- convenience
vendor managed inventory (VMI)
inventory-management system
whereby the supplier determines the product amount and assortment a
customer (such as a retailer) needs and automatically delivers the appropriate
items
reverse logistics
set of activities conducted after the sale of a product to recapture value and end the product’s lifecycle (spy valuenya naik abis diskon hehe)
- Reclaiming recyclable and reusable materials
- Rework for consumption or use for repair
- Benefits environment
- Reduces waste
traditional market place
- face to face exchanges
digital natives
- ability to design and execute marketing program with unique value creation
- build relationships for favorable customer experience
digital marketplace is a digitally enabled environment characterized by
- face to screen exchange relationship
- electronic images and offerings
interactive marketing
two way buyer seller electronic communication in a computer mediated environment in which the buyer controls the kind and amount of information received from seller
choice board
allow individual customers to design their own product and services by: answering a few questions and choose offering attributes, prices, and delivery menu
collaborative filtering
a process that automatically groups people with similar buying intentions, preferences, and behaviors and predicts future purchases
7 website design elements that drives customer experience (7C)
- context
- commerce
- connection
- communication
- customization
- community
- content
why do consumers shop and buy online?
- convenience (bots and eight second rule)
- choice (offering selectin, choice assistance)
- customization
- communication (marketer to consumer, consumer to marketer, chat rooms, messaging, social networks, buzz, blog, viral marketing)
- cost (dynamic pricing, lower price online than in stores)
- control (over shopping and purchase decisions, behavioral targeting)
3 Steps implementing multichannel marketing
- document cross-channel consumer behavior
- employ mutually reinforcing communication and channels
- monitor and measure performance
