Marketing channel and distribution
March 21st Curtis 340 10:30am
65 multiple choice
5 essay
Chapters 8-14, 18
Chapter 8:
Target market
Channel design strategy Market density refers to the number of buyers or potential buyers per unit of geographical area.
Market Behavior consists of four Sub-dimensions:
1. When the market buys
2. Where the market buys
3. How the market buys
4. Who buys
Market Size-makes you think of the number of buyers
Market Geography- the greater the distance between the manufacturer and the consumer, the more likely you will need to use intermediaries
MSA- Metropolitan statistical area
Efficient congestion advantages of highdensity markets – Minimizing convenience costs and commodity costs
Sub dimensions of market behavior Where, when, why, how buyers purchase products
Seasonal items/seasonal variations: Snow blower example. (If there is a big change for seasonal items, you must adjust in accordance to the demand)
Multiple channels-
What is the term for different types of stores (brick and mortar, online stores, catalogs etc)?
Industrial organizations
Sets of people who participate in industrial buying decisions and who are responsible for the consequences resulting from the decision whole or in part.
Users
Influencers
Deciders
Approvers
Buyers
Gatekeepers Users (who has the authority to make a final decision)
Chapter 9
How to motivate channel members- The why and how. Basic Framework:
1. Find out the needs and problems of channel membersrt. 2. Offer support to the channel members that is consistent with their needs and problems.
3. Provide leadership through the effective use of power. What is the goal of motivating manufactures? You have to secure channel members.
Before you secure channel members, you first need to know their needs; what they want. Tailor your program to their needs.
Channel member audit and other types of analytics for channel member securing
Strategic alliances and cooperative program- Know the difference between the two (Walmart and PG- strategic) Strategic is long term relationship, cooperative is short term. PG can provide leadership
Chapter 10
Product issue in channel design
4 P’s product- 1. product life cycle-will effect how you manage your channel. Introduction, growth, maturity, and decline. You need different channel managemt strategies for each stage. What should you do when your product meets maturity? In decline, the profit margin will drop, and you don’t need as many intermediaries. 2. Product positioning strategy in channel management 3. Why manufacturers engage in trading up and trading down (Target with denezin jeans) price place promotion
4 C’s
Chapter 11
Pricing issues
Discount: $7 -manufacturers get from retailers $13what people pay $6 difference so profit margin is 6/7
Why manufacturers provide discount to large stores-walmart, lowes, etc
Referent price point
MSRP
Sometimes you get product from unauthorized dealers- Grey market
Free riding/writing?
Chapter 12
Promotion 2 kinds, pull and push strategy.
For pull, consumer demand-they will seek product from retailers
Push strategy- manufactures cooperate with channel
