What marketing decisions do these marketing intermediaries make ?

1. What marketing
decisions do these
marketing
intermediaries
make ?
Monarch Lakhanpal
NIT Jalandhar

2. Until a target market is not defines ,
consistent decisions cannot be made
about product assortment , décor and
advertisements .and service levels
Fashion and You , the online retail
portal has found success by
offering brands at discounted
prices to its customers

3. Fabindia reaches individuals
and institutional buyers with
its unique ethnic offerings
through multiple
channels.Some of which
includes Internet , stores
and catalogs

4. ( A)
( B )
( C )
( D )
Product assortment is done
on basis of
1)Length
2)Breadth
(a)Narrow and shallow
assortment –Small lunch
counters
(b)Narrow and deep
assortment-
Delicatessen
(C)Broad and shallow
assortment –Cafeteria
(d) Broad and deep
assortment -Restaurant

5. Some possibilities of product
assortment :
•Feature Exclusive national brands that are
not available at competing retailers –Wills
Lifestyle has added Wills Luxuria, an
expensive men’s wear range .
•Feature mostly private labelled
merchandise –Benetton and GAPmostly
carry privately labelled clothing in their
stores.
•Feature surprise or ever changing
merchandise –Men’s Wearhouse offers a
surprise assortment of export surplus at
heavy discounts .

6. Feature blockbuster distinctive
merchandise events
Bloomingdale’s ran a
month
long celebration for the
Barbie doll’s
50thanniversary

7. Feature the latest or newest
merchandise first
ZARA
excels in and
profits from
being first to
market with
appealing new
looks

10. Use of computers to track inventory , compute economic
order quantities , order goods and analyse money spent on
vendors and products.

11. Radio frequency Identification ( RFID )
- Is used to to monitor inventory and track goods in real
time .

12. Direct product profitability ( DPP )-
to measure a product’s handling costs from the time it reaches the
warehouse until a customer buys it in the retail store.

13. All retailers want
HIGH (turns X earns)
But both do not go together
Most of then fall into :
(1) high markup–lower volume
(2) low markup–higher volume

16. Different essence in every department of store makes your
store stand -out
Store atmosphere

17. Store Activities and experiences
There has started a fight between Internet and Store shopping.
Stores can use this fact as a plus point .
Customers can first experience the product and then buy which is not possible in online
shopping
Panasonic and Sony create a Home like environment at their
stores to let their customers experience their home theatre

18. Communications
Ads in magazines like
Vogue, Vanity Fair etc
•Discount coupons
•Membership cards
•Special sales on
holidays

19. Stores at Central business districts

21. (1)Shopping Strips
(2)Store inside a large store
(3)Stand alone stores

23. How should we
handle
Orders?

24. Higher customer
satisfaction
Higher profit

25. WAREHOUSING
Where would we locate
our stocks? ?

27. More stocking
Faster Delivery
But , Higher Cost
To reduce costs :
•Centralize the inventory
•Use faster transport
•Assembly, packaging , and
constructing promotional
display in the plants itself

30. a. Low setup cost- stable average cost
b. High setup cost- reduce the average cost
•Larger the quantity ordered, less frequently an order needs to be placed

31. •ORDER-PROCESSING COST, compared with INVENTORY CARRING
COSTS.
•Order processing cost and inventory:carrying costs sum up at
different order levels graph.

32. •POSITIONING OF INVENTORY ITEMS-according to risk and
opportunity.
-bottleneck items(high risk, low opportunity)
-critical items(high risk, high opportunity)
-Commodities items(low risk, high opportunity)
-Nuisance items(low risk, low opportunity)
•NEAR ZERO INVENTORY STRATEGY-build for order, not for stock
also known as SOMO, “sell one, make one.”

34. Criteria to keep in mind while for
shipping :
•Speed
•Frequency
•Dependability
•Capability
•Availability
•Traceability
•Cost

35. Containerization
consists of putting
goods in boxes or
trailers that are
easy to carry
between two
transport modes.
Fishyback
Trainship
Piggyback
Airtruck