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Analyzing Consumer Needs
A. LOT SIZE
Hertz preferred a channel from which it can buy a large lot size
A HOUSEHOLD wants a channel that permits buying a LOT Size of 1.
B. WAITING AND DELIVERY TIME The average time customers wait for receipt of goods. Customers increasingly prefer faster delivery channels .
C. SPATIAL CONVINIENCE
The degree to which marketing channels makes it easy for customers to purchase the product
Example : Chevolet offers greater spatial convenience to its customers
Chevrolet’s greater Decentralization helps customers save on transportation and search costs in buying and repairing an automobile .
E. SERVICE BACK-UP
Add-on services ( credit, delivery, installation , repairs) provided by the channel .
ESTABLISHING CHANNEL OBJECTIVES
Marketers should state their channel objectives in terms of :
Service output levels Associated cost and support levels .
Channel objectives vary with product characteristics :
For say :
Bulky materials require channels that minimum shipping distance and the amount of handling
Channel Alternatives differ in 3 ways which are :
1 TYPES OF INTERMEDIARIES
Sales Force Industrial Distributors Manufacturers’
Agency
2 NO. OF INTERMEDIARIES
1. Exclusive Distribution
2. Selective Distribution
3. Intensive Distribution
Three Strategies based on the no of Intermediaries are :
3TERMS & RESPONSIBILITIES OF CHANNEL MEMBERS
1.Price Policy
2.Conditions of Sale
3. Distributors’ territorial rights
4. Mutual services &
Responsibilities
These slides were Created by Jalaj Garg, IIT Guwahati, during a Marketing internship by Prof. Sameer Mathur, IIM Lucknow.(see www.IIMInternship.com)