Your SlideShare is downloading. ×
Session 27  MG 220 MBA - 15 Nov 10
Upcoming SlideShare
Loading in...5

Thanks for flagging this SlideShare!

Oops! An error has occurred.

Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Session 27 MG 220 MBA - 15 Nov 10


Published on

Session 27 …

Session 27
MG 220 Marketing Management
MBA 10

Published in: Business, News & Politics

  • Be the first to comment

  • Be the first to like this

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

No notes for slide


  • 1. MG 220 Marketing Management MBA 10 Fall 2010 Muhammad Talha Salam, Asst. Professor Access it online: Part 6: Delivering Value > Channel integration and systems: SKIM > E-Commerce Marketing Practices: SKIM > Retailing > Private Labels Class Presentation | Session 27 | 15 Nov 2010
  • 2. Access it online: Channel Integration and Systems Vertical Marketing Systems (VMS) VMS • Conventional Marketing System: Independent producer, wholesaler, retailer WHILE • Vertical Marekting System: Producer, wholesaler, retailer acting as a unified system • This concept is widely used in different forms: Corporate, Administered, Contractual • VMS is all based on power of any one of the member of Marketing System (not necessarily producer, but also retailer or wholesaler) • Corporate VMS: combines successive stages of production, distribution and retailing under single ownership. Companies buy from companies they own. • Administered VMS: coordinates successive stages of production and distribution through the size and power of one of members • Contractual VMS: consists of independent firms at different level of production and distribution integrating their programs on a contractual basis to obtain more economies or sales impact than they could achieve alone MG 220 Marketing Management 2
  • 3. Access it online: Channel Integration and Systems Horizontal and Multichannel Marketing Systems Horizontal Marketing Systems • Two or more unrelated companies put together resources or programs to exploit an emerging marketing opportunity Multichannel Marketing Systems • Occurs when a single firm uses two or more marketing channels to reach one or more customer segments. MG 220 Marketing Management 3
  • 4. Access it online: E-Commerce Marketing Practices Key definitions Internet has impacted channel strategies a lot and these are some relatively new trends which are now strongly established. E-business • Use of electronic means and platforms to conduct a company’s business E-Commerce • Company (or its website) offers to transact or facilitate selling of products and services online. E-Purchasing • Companies decide to purchase from online suppliers E-Marketing • Describes company efforts to communicate and promote their products online PURE CLICK COMPANIES • Companies which started and are operating only on internet i.e. as online or e-business e.g. BRICK-AND-CLICK COMPANIES • Companies which existed otherwise and added online stores later. E.g. Walmart MG 220 Marketing Management 4
  • 5. Access it online: Retailing Definition | Types of Retailers | New Models for success What is Retailing? • All activities involved in selling goods or services directly to end consumer for personal, non- business use. EXAMPLES? Types of Retailers • Based on Levels of Service: – Self-service – Self-selection – Limited service – Full service • Matrix showing positioning strategies for retailers: • Non-store retailing – Direct Selling – Direct Marketing – Automatic Vending – Buying Service New Models for success – Strong retail brand approach – The showcase store MG 220 Marketing Management 5
  • 6. Access it online: Retailing Marketing Decisions Key decisions to be taken by retailers • Target Market • Product Assortment • Procurement – Policies and procedures for procurement based on assortment • Services: – Deciding on services mix in terms or pre-purchase, post-purchase and ancillary • Store Activities & Atmosphere • Price – Pricing strategies for retailers • Communication – All decisions related to communication i.e. promotion to generate traffic • Location: – Three keys to success in retailing are: Location, Location and Location! MG 220 Marketing Management 6
  • 7. Access it online: Retailing Trends in Retailing Upcoming and relatively new trends in retailing • New Retail forms and combinations – Supermarkets having bank branches, bookshops having coffee shops • Growth of intertype competition – Different type of stores are competing for same consumer. E.g. Electronics retailer competing with Hyperstar • Competition between store and non-store retailing – Non-store based retailing is taking business away from store-based retailing • Growth of Giant retailers – Through better information systems, logistical superiority, giant retailers offer better prices • Decline of Middle Market Retailers – Hour-glass approach i.e. growth is either at top or at bottom. Middle level retailers are shrinking • Growing investment in technology – For better conducting of business use of technology is increasing • Global Presence of major retailers – Many retailers from Europe and North America are now presence in almost all continents and are constantly expanding globally MG 220 Marketing Management 7
  • 8. Access it online: Private Labels What is a Private Label? • A brand developed by the retailers and wholesalers themselves • This a challenge for manufacturers that retailers can offer private labels in competition • But there is a limit to how much private label can be used • They might not be attractive as national brand and/or they might not be feasible to produce ‘privately’ House Brands • Why go for Private Labels • First: They are more profitable. Intermediaries find low-cost producers and get it developed and earn better margins themselves • Second: It can be a differentiating factor for retailers MG 220 Marketing Management 8
  • 9. Access it online: Private Labels The Private Label Threat • Generally retailers have advantage here. • They can even charge extra fee from manufacturers for their shelf space • Consumers’ being more price sensitive is also hurting national brands • Manufacturers react to this threat by focusing more on consumer-driven promotion to maintain strong brand preference MG 220 Marketing Management 9
  • 10. MG 220 Marketing Management MBA 10 Fall 2010 Muhammad Talha Salam, Asst. Professor Access it online: Part 6: Delivering Value > Covering balance from prev session > Two topics from Part 6 to be covered: > Wholesaling > Market Logistics: SKIM > Overall review of Part 7 Class Presentation | Session 28 | 22 Nov 2010