WK 11: PLACE Flashcards
Place:
Delivering the product to the right customers at the right place at the right time using the right channels
Intermediaries:
Increase efficiency of distribution
Direct supply chain:
Producer —> consumer
Indirect supply chain:
Producer —> retailer —> wholesaler —> consumer
Pros and Cons of intermediaries:
Pros:
Increases efficiency/lower workload
Increased reach and exposure
Cons:
More competition
Lower profit margin per unit
Less knowledge on consumers
Limited/No control over marketing mix elements
Channel Conflict:
Conflicts/disputes between different partners in the same marketing channel
Intensive distribution:
Greater reach
Convience goods
Customer assistance not provided
Selective Distribution
Balance between reach and control
Shopping or specialty goods
Limited customer assistance
Exclusive distribution
Limited market coverage
Specialty goods
Customer service expected
Push vs Pull strategy
push is about pushing the product through channels to customers,
pull is about creating consumer demand that pulls the product to them
To Minimize the Risk of Channel Conflict:
Establish guidelines around minimum advertised price while recognizing that channel partners must earn fair returns to stay motivated
Try avoiding long-run agreements
Create systems where competing channels aren’t competing for the same set of customers
Diversify product offerings across different channels (e.g., launch exclusive products on your own website / store)
OmniChannel Marketing:
Cross-channel strategy that relies on integrating customers’ journey on different channels to create a seamless customer experience