Term
| the essence of modern marketing management: |
|
Definition
| to develop a marketing mix of product, price, promotion and distribution (place) |
|
|
Term
| firms should place a high priority on distribution when... |
|
Definition
1. customers needs highlight distribution as important
2. homogeneity exists on other 3 Ps
3. competitors are weak in heir distribution efforts
4. efficiency gains are possible over current efforts. |
|
|
Term
|
Definition
| firms should stress distribution when it serves customers needs in he target market. Marketing channels are so closely lined to customer need satisfaction because it is through distribution that firms can provide the kinds and levels of service that make for satisfied customer. Convenience is becoming increasingly important. |
|
|
Term
|
Definition
| distribution advantages are not easily copied by competitors. distribution advantages are based on a combination of superior strategy, organization, and human capabilities. |
|
|
Term
|
Definition
| competitors neglect of distribution strategies provides excellent opportunities. the channel manager must analyze target markets to determine whether competitors have neglected distribution and whether vulnerabilities exist that can be exploited. |
|
|
Term
|
Definition
| "hooking up" with a mix of cooperative channel members will strengthen the channel. because each channel member is an independent entity, rewarding opportunities exist for channel managers to cultivate cooperation among members that possess specialized skills that would be too costly to develop or perform in house. |
|
|
Term
| channel strategy affects channel design in that... |
|
Definition
| appropriate strategies will guide the design phase so as to help the firm realize a differential advantage. (Zara's corporate channel) |
|
|
Term
| a differential advantage occurs when... |
|
Definition
| a firm attains a long-term, advantageous position in the market relative to its competitors. |
|
|
Term
|
Definition
| the reputation a member acquires among its other channel participants for furnishing products, services, financial returns, programs, and systems that are in some way superior to those offered by competing members. |
|
|
Term
|
Definition
| is what a firm does with its channel planning and decision making to attain the channel position it desires. |
|
|
Term
| chosen members of the channel should... |
|
Definition
| reflect the channels positioning efforts while simultaneously assisting the firm to achieve its distribution objectives. Reflect the objectives and strategies of the organization as a whole. |
|
|
Term
| Closeness of channel relationships: factors to consider |
|
Definition
| distribution intensity, target markets, products, company policy, middlemen, environment, and behavioral dimensions. |
|
|
Term
| portfolio concept to motivating others... |
|
Definition
| a tool for motivating different types and sizes of channel members participating in various channel structures who may respond differently to various motivation strategies. |
|
|
Term
| evaluation of channel member performance... |
|
Definition
| channel manager's involvement in evaluating member performance is integral to developing and managing channel. |
|
|
Term
| Evaluation of channel member performance: Always important to ask... |
|
Definition
| Have provisions been made in the design and management of the channel to assure that channel member performance will be evaluated effectively? |
|
|
Term
|
Definition
| a plan of action to achieve your goals |
|
|
Term
|
Definition
| a strategy that is fundamental to the over all existence of the firm. Where they want to go long term |
|
|
Term
| business (fundamental) strategy |
|
Definition
| all about trying to reach a goal/objective focused on business |
|
|
Term
|
Definition
| short term actions that support a business strategy |
|
|
Term
|
Definition
| the broad principle by which the firm expects to achieve its distribution objectives for its target market. |
|
|
Term
| 3 general ways to view the importance of distribution in overall corporate strategy making: |
|
Definition
1. who is in charge
2. type of strategy-making
3. value chain analysis |
|
|
Term
|
Definition
| decisions involving either the development of new marketing channels where none had previously existed or the modification of existing channels |
|
|
Term
| Who engages in channel design: Manufacturers |
|
Definition
| includes also service providers and franchisors, must look down the channel toward the market. |
|
|
Term
| Who engages in channel design: wholesalers |
|
Definition
| must look both up and down the channel |
|
|
Term
| Who engages in channel design: retailers |
|
Definition
| must look up the channel to secure suppliers |
|
|
Term
|
Definition
1. recognize the need for channel design decision
2. set and coordinate distribution objectives
3. specify distribution tasks
4. develop alternative channel structures
5. evaluate relevant variables
6. choose the "best" channel structure
7. select channel members |
|
|
Term
| setting distribution objectives requires... |
|
Definition
| knowledge of which, if any, existing objectives and strategies may impinge on these new distribution objectives. |
|
|
Term
| holistic approach is needed... |
|
Definition
| distribution is often really a facilitator for achieving the firms other objectives, product marketing, price marketing, promotion marketing. And the firms marketing mix objectives are derived from the firms overall objectives and strategies. |
|
|
Term
| outlining distribution tasks is... |
|
Definition
| highly idiosyncratic and situationally specific. i.e. tasks are a function of the distribution objectives and the firms involved. |
|
|
Term
|
Definition
market variables
product variables
company variables
intermediary variables
environmental variables
behavioral variables |
|
|
Term
|
Definition
market geography
market size
market density
market behavior |
|
|
Term
|
Definition
bulk and weight
perishability
unit value
degree of standardization
technical vs. nontechnical
newness |
|
|
Term
|
Definition
size
financial capacity
managerial expertise
objectives and strategies |
|
|
Term
|
Definition
availability
cost
services (available from intermediaries) |
|
|
Term
|
Definition
economic
sociocultural
competitive
technological
legal |
|
|
Term
|
Definition
| develop congruent roles for all channel members. Be aware of member "power bases". Manage communication channels to minimize possible conflict. |
|
|
Term
| Heuristics in channel design |
|
Definition
-Heuristics: rules of thumb
-Benefits: fairly simple prescriptions for channel structure.
-Limitations: mostly useful as a rough guide to decision-making. |
|
|
Term
| Why is management incapable of choosing an optimal channel structure? |
|
Definition
-all possible outcome alternatives are unknown
-precise methods for calculations the exact payoffs associated with each alternative structure do not exist.
which is why we assume with the use of heuristics and why tacit knowledge is so important. |
|
|
Term
| some techniques for enhancing our channel design decisions include the: |
|
Definition
-'characteristics of goods and parallel systems" approach
-financial approach
-transaction cost analysis approach
-management science approaches
-judgmental-heuristic approach |
|
|
Term
| assuming that managements ability to make judgments is high and good empirical data on costs and revenues exists then... |
|
Definition
| its possible to make satisfactory channel design choices using the judgemental-heuristic approach |
|
|
Term
| Judgmental heuristic approaches: 3 general approaches: |
|
Definition
1. straight qualitative judgment approach
2. weighted factor score approach
3. distribution costing approach |
|
|
Term
| channel member selection is the |
|
Definition
| last phase in channel design. however its most often not the result of channel design. |
|
|
Term
|
Definition
| the greater (lesser) the intensity of distribution, the lesser (greater) the emphasis placed on member selection. |
|
|
Term
|
Definition
1. finding prospective channel members
2. applying selection criteria to determine the suitability of prospective members
securing the prospective channel members as actual channel members |
|
|
Term
| in order of likely importance to the channel manager... |
|
Definition
field sales organization
trade shows
reseller inquires
customers
advertising and promotion
trade shows
other sources |
|
|
Term
| salespeople are the best positioned to: |
|
Definition
-pick up information about availability or likely intermediaries
-know more management and salespeople of major intermediaries in a territory who are not currently members
-have lined up prospective intermediaries because of existing relationships (even if not members) |
|
|
Term
| possible problems for field sales organization are: |
|
Definition
-manufacturers may not adequately reward their salespeople for their time and effort in establishing these connections.
-rewards push salespeople to work outside their existing, or formalized, roles |
|
|
Term
| Trade sources: often the most specific information regarding an industry come from these sources: |
|
Definition
trade associations
trade publications
directories
trade shows
firms selling similar products
the "grapevine" |
|
|
Term
| reseller inquires occur when a |
|
Definition
| channel member learns about possible future members through direct inquires from those interested in handling their products or selling through their firms (retailers and wholesalers). |
|
|
Term
| one of the best ways to gain information about potential members is |
|
Definition
| through formal or informal surveys |
|
|
Term
| trade publication advertising can |
|
Definition
| generate a large number of inquires (from both up and down the channel). |
|
|
Term
| trade shows and conventions are |
|
Definition
| extremely beneficial to small manufacturers and retailers to meet with firms who might be interested in their market strategy to provide a unique advantage only available from a small firm. (less power, better info, etc) |
|
|
Term
| other possible sources of customer sources are |
|
Definition
-chambers of commerce, banks and local real estate dealers
-classified telephone directories or the yellow pages
-direct mail solicitations
-contacts from previous applications
-independent consultations
-list brokers that sell lists of names of businesses
-business databases
-the internet |
|
|
Term
| possible selection criteria for finding possible channel members are |
|
Definition
-credit and financial condition
-sales strength
-product lines
-reputation
-market coverage
-sales performance
-management succession
-management ability
-attitude
-size |
|
|
Term
| securing channel members: an effective selling job is necessary to |
|
Definition
| secure good intermediaries. |
|
|
Term
| offering inducements: while many types of possible inducements exist, most will fit into one of the 4 areas... |
|
Definition
1. product line
2. advertising and promotion
3. management assistance
4. fair dealing and friendly relationships |
|
|
Term
| product line inducements.... |
|
Definition
1. include manufacturers offering good product line with strong sales figures and profit potentials
2. should stress value of a good product line from the channel members perspective |
|
|
Term
| advertising and promotion inducements in the consumer market.... |
|
Definition
| should gain immediate credibility by using a strong program of trade paper advertising |
|
|
Term
| advertising and promotions inducements in the industrial market... |
|
Definition
| should gain recognition by using a strong program of trade paper advertising. |
|
|
Term
| management assistance inducements should highlight to prospective members where the channel manager will help with the following: |
|
Definition
1. training
2. financial analysis and planning
3. market analysis
4. inventory control
5. effective promotion (both methods and support) |
|
|
Term
| its the channel managers responsibility to... |
|
Definition
1. convey that he/she is genuinely interested in establishing a good relationship based on trust
2. demonstrate concern for the well-being of all members both as business entities and as people in general. |
|
|
