What marketing decisions do these marketing intermediaries make?

1. Yash Patel
IIT Madras

3. They must define and profile Target
Market to make consistent decisions
about product assortment, store
décor, advertising messages &
media, price and service levels

4. Mistake in Choosing or Switching
Target markets can be Costly
Jeweler ZALES:
Decided to chase upscale
customers
Lost many traditional
customers without winning
the new customers they
expected

5. They must the channels to be used
to reach the customers
It should be done via multiple
channels working together effectively

6. JC Penny has ensured that its
internet, store and catalog
business are fully intertwined

7. FabIndia has
successfully used an
integrated
multichannel
approach to retail
stores, the internet
and institutional sales
to establish the brand

8. The product assortment must match
the target market’s shopping
expectation in breadth and depth

9. Feature Exclusive National
Brands that are not available at
competing retailers- Wills Lifestyle
has added wills luxuria, an
expensive men’s wear
Feature most private label
merchandise- Beneton designs
most of the clothes in their
stores
Feature Blockbuster distinctive
merchandise events-
Bloomingdale’s ran a month long
celebration for Barbie Doll’s 50th
anniversary

10. Feature Surprise or Ever
changing merchandise –
Wearhouse offers a surprise
assortment of export surplus at
heavy discounts
Feature latest or newest
merchandise first - Zara first to
market with appealing new looks
and designs
Offer merchandise customizing
service - Harrods makes custom
tailored suits, shirts and ties

11. Procurement is the acquisition of
goods, services or works from an
outside source

12. Computers are used to track inventory,
compute economic order quantities, order
goods and analyze money spent on vendors
and products
Direct Product Profitability (DPP): Used to
measure product’s handling cost from the time
it reaches the warehouse until a customer
buys it in the retail store

13. Prices must be set in relationship to
the target market, product and
service assortment mix and
competition
All retailers want High turns x earns
But usually both don’t go together

14. Westside has combined a hip image
with affordable prices

15. Unerringly reliable
service should be
provided, whether
face-to-face,
across phone
lines, or via online
chat

17. Every store has a look, feel, and a
physical layout that makes it hard or
easy to move around

18. Different essence in every department of store
makes your store stand
OUT

19. Stores provide a shopping
experience as a differentiator from
Online Shopping
Store atmosphere should match
shoppers’ basic motivation

20. Panasonic and Sony creates a home like
environment at their stores to let their customers
experience their home theatre

21. Wide range of communication tools
are used to generate traffic and
purchases
- Ads
- Money saving Coupons
- Membership cards
- Special Sales on holidays

22. Most advantageous locations for the
outlets must be decided based on:
- Survey of consumer shopping habits
- Traffic Counts
- Analysis of Competitive Locations

25. Most companies try to shorten the order-
to-payment cycle- that is the elapsed time
between an order’s receipt, delivery, and
payment
Lower the cycle takes, higher the
customer satisfaction, higher the
company’s profit

27. Every company must store the finished goods
until they are sold, because production and
consumption cycles rarely match
To reduce the inventory costs:
- Centralize the inventory in one place
- Use fast transport to fill orders
- Assembly, packaging and construction
promotional displays in plants itself

29. Inventory refers to the goods and materials
that a business holds for the purpose of
resale
Inventory Management involves:
- Deciding at what stock level to place a
new order
- Deciding how much to order

30. Inventory costs: Cost related to storing and
maintaining its inventory over a period of time
Order Processing Costs: Setup and running costs
for the manufacturer
Larger the quantity ordered, less frequently an
order needs to be placed

33. Transportation choices affect product pricing,
on-time delivery performance, and the
condition of the goods when they arrive, all of
which affect the customer satisfaction
Criteria to keep in mind while shipping:
Speed Frequency
Dependability Cost
Availability Traceability
Capability

34. Containerization :
Consists of putting
goods in boxes or
trailers that are
best to carry
between two
transport modes
Piggyback
Air Truck
FishybackTrain ship