Cd6813 channel


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ini semua slide marketing strategik kelas sabtu ukm semester 1 2010/2011

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  • Cd6813 channel

    1. 1. School of Business Management Universiti Kebangsaan Malaysia _______________________________________________________________________________________
    2. 2. ACTUAL PRODUCT LEVEL Marketing channels are set of interdependent organizations involved in the process of making a product or service available for use or consumption.
    3. 3. ACTUAL PRODUCT LEVEL Product variety  Service backup  Lot size  Spatial convenience The higher the level of the service output, the higher the price would be to the consumers.
    4. 4. 4 Consumer Marketing Channels
    5. 5. 5  Distribution coverage: Number of them needed  Types of marketing intermediaries  Terms & responsibilities of each
    6. 6. 6 Channels Alternatives for a Cellular Car Phone Maker
    7. 7. School of Business Management Universiti Kebangsaan Malaysia _______________________________________________________________________________________ • Exclusive Distribution • Intensive Distribution • Selective Distribution
    8. 8. School of Business Management Universiti Kebangsaan Malaysia _______________________________________________________________________________________ Exclusive Distribution • Limiting the number of intermediaries. • Used when producer want to maintain control over the service level and output offered by the resellers.
    9. 9. School of Business Management Universiti Kebangsaan Malaysia _______________________________________________________________________________________ Selective Distribution • The use of more than a few but less than all of the intermediaries. • Used by established companies and new companies seeking distributors. • Gained adequate market coverage with more control and less cost than intensive distribution. .
    10. 10. School of Business Management Universiti Kebangsaan Malaysia _______________________________________________________________________________________ Intensive Distribution • Manufacturer placing the products in as many outlets as possible. • Used for products which the consumer requires a great deal of location convenience
    11. 11. 12 TERMS & RESPONSIBILITIES OF CHANNEL MEMBERS Determine rights & responsibilities of participating channel members  “Trade-Relations Mix” 1. Price policies 2. Conditions of sale 3. Distributors’ territorial rights 4. Mutual services & responsibilities
    12. 12. ACTUAL PRODUCT LEVEL • Comprises an independent producer, wholesaler(s) and retailer(s). • Each is a separate business seeking to maximize its own profits, even if the goal reduces profit for the system as a whole. • No channel member has complete or substantial control over other members.
    13. 13. ACTUAL PRODUCT LEVEL • Comprises the producer, wholesaler(s), and retailer(s) acting as a unified system. • One channel member, the channel captain, owns the others or franchises them, or has so much power that they all cooperate. • The channel captain can be the producer, the wholesaler, or the retailer.
    14. 14. ACTUAL PRODUCT LEVEL Should be reviewed when: •Significant change in consumption pattern •New and strong competitor enters the market •The product moves into other stages in its PLC
    15. 15. ACTUAL PRODUCT LEVEL Includes all the activities involved in selling goods or services directly to final consumers for personal, non-business use. A retailer or retail store is any business enterprises whose sales volume comes primarily from retailing.
    16. 16. 17 Major Retailer Types
    17. 17. 18  store retailers  non-store retailers  retail organizations
    18. 18. 19 Figure 16.1 Retail Positioning Map By combining different service levels with different assortment breadths, we can distinguish the 4 broad positioning strategies available to retailers
    19. 19. 20  Non-store retailing has grown faster than store retailing  Falls into 3 major categories: 1. Direct Selling 2. Direct Marketing 3. Automatic Vending
    20. 20. 21  Increasing number of retail stores form corporate retailing  Achieve economies of scale  Greater purchasing power  Wider brand recognition  Better-trained employees
    21. 21. 22 Major Types of Corporate Retail Organizations
    22. 22. 23 GIORDANO Junior targetsGIORDANO Junior targets couples with childrencouples with children
    23. 23. ACTUAL PRODUCT LEVEL • Strong retail brand approachStrong retail brand approach Promote themselves as brands rather than brands that they carry. Introduce in-house brands and promote actively. • The showcase storeThe showcase store Sell other brands and often gets the vendor of those brands to take responsibility for stock, staff, and even the selling space. The vendor then hand over a percentage of the sales to the store’s owner. This translates into lower gross margins for the department store but also lower operating costs.
    24. 24. ACTUAL PRODUCT LEVEL The services mix is a key tool for differentiating one store from another. • Prepurchase services:Prepurchase services: Include accepting telephone and mail orders, advertising, window and interior display, fitting rooms, shopping hours, fashion show, and trade-ins. • Postpurchase services:Postpurchase services: Include shipping and delivery, gift wrapping, adjustments and returns, alteration and tailoring, installations, and engraving. • Ancillary services:Ancillary services: Include general info, check cashing, parking, restaurants, credit, rest-rooms, and children-attendant service.
    25. 25. ACTUAL PRODUCT LEVELPls read on “Wheel-of-Retailing”
    26. 26. ACTUAL PRODUCT LEVEL Includes all the activities involved in selling goods or services to those who buy for resale or business uses. Wholesalers pay less attention to promotion, atmosphere, and location because they are dealing with business customers. Wholesale transactions are usually larger than retail transactions and cover a larger trade area
    27. 27. 28 Wholesaling , major feature of distribution in Asia A number of factors explain this:  Growth of factories located far from buyers  Advanced production orders rather than in response to specific orders  Increase in intermediate producers & users  To adapt products to needs of intermediate & final users
    28. 28. ACTUAL PRODUCT LEVEL Exercise on PricingExercise on Pricing Rushdy started a small company that makes and sells home-made kaya. People who tried the kaya really seemed to like it. One of the first problems Rushdy faced was pricing. She had thought of pricing the kaya high enough so her money would earn the interest it would have received if she had left in her investment account. On the other hand, pricing the kaya low would help to acquire loyal customers. After some thought, Rushdy decided to fix the price at RM2.95 a bottle, which was cheaper than other brands of kaya in the market. In its first year of operation, the company sold 144,000 bottles to retailers in various parts of the city. The company fixed costs were RM32,000 and its variable unit costs were RM1.25 per bottle.