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Operational marketing: Place (Distribution) (Ch17: Marketing Channels (2)…
Operational marketing: Place (Distribution)
Ch17: Marketing Channels
1) What is "marketing channels"
a set of interdependent organizations involved in the process of
making a product or a service available for consumption
or use by consumers or industrial users
Consumer pays a non negligeable margin of the distribution cost, even in large company. (supermarket)
The particular set of marketing channels a firm employs
Push
vs.
Pull
strategy.
Push
: push the retailers to put their product in the store.
Pull
: A lot of advertising.
consumer " I saw this on TV, do you have it."
Multichannel marketing
and
Omnichannel marketing
:tv:
There are ∆ channels flows
2) The role of marketing channels
Develop and disseminate persuasive information to stimulate purchasing
Gather information about potential and current customers, competitors, and other actors and forces in the marketing environment
Negociate and reach agreements on price and other terms and place orders with manufacturers
Provide successive storage and movement of physical products
Provide buyer’s payment of their bills
3) Channel-design decisions
a) Analyzing customer needs and wants
Desired lot size
Waiting and delivery time
Spatial convenience : Proxy carrefour
Product variety
Service backup
b) Channel-design objectives
Promotional effort
Cost effectiveness: take the balance between availability and delivery cost.
c) Channel strategy
i) Channel level
Zero-level channel: Zara, Tesla
Multiple levels: Delhaize
ii) Type of distribution strategy (3 types)
Exclusive distribution: sell only in few store. Allow to have a total control over the selling.
• Selective distribution: select a limited number of stores: Apple,
Intensive distribution: : Coke, Mars chocolate
4) Collaborating with channel members
Training and motivating channel members
5) Channel integration & systems
6) Marketing channels in a digital world
The digital channels revolution:
• Customer support in store/online/phone
• Check online for product availability at local stores
• Order product online to pick up at store
• Return a product purchased online to a nearby store
E-commerce:
Uses a Web site to transact or facilitate the sale of products and
services online
Pure-click vs. brick-and-click companies
M-Commerce (mobile devices):
keep consumers as connected and interacting with a brand as they choose
Ch18: Retailing
1) Types of retailers:
Types of retailers: store retailers
Specialty store
Department store:
Supermarket: large, high-volume to meet total needs for food and house-hold products
Convenience store: small store in residential area, often with large opening hours for convenience products
Drug store: health and beauty and other personal care
Types of retailers: nonstore retailers
Types of retailers: Corporate retailing and franchising
2) Modern retail marketing environment
Competitive retail market structure
• New retail forms and combinations
• Growth of giant retailers
• Growth of Intertype competition
• Emergence of Fast Retailing
• Discount of middle-market retailers
• Role of technology:
Amazon Go
3) Retailers’ marketing decisions
• Target market
Channels: retailers must decide which channels to employ to reach their consumers
Showrooming vs. webrooming
• Develop product differentiation
• Retailers must decide on the services mix to offer customers:
Pre-Purchase services
Post-purchase services
Ancillary services
• Store atmosphere
• Store activities and experiences: Nike
• Communications
Location: city central,