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SEMESTERTEST 2 DETAILS
 DATE: 8 April 2015
 TIME: 5,6TH
PERIOD11:10 – 13:00
 VENUES: A – Z, EXR6
 WORK: Unit 6,7,8,9,10,11
 MARKS: 50
 TIME: 90 Minutes
 FORMAT:
 O ne Busine ss Case study with applicatio n
q ue stio ns- Yo u ne e d to kno w the the o ry and ho w
to practically apply it/ m o tivate answe rs fro m the
case study.
• Make sure you read the entire case
study ( +- 2 page)
• Read your questions carefully-
motivate/ justify from the case.
• KNOW YOUR THEORY!
What type of questions can I
expect?
What type of questions can I
expect?
 There are three product line stretching
strategies. List any two (2) of these strategies
and provide a suggestion as to how NIVEA
can practically implement each strategy.
What type of questions can I
expect?
 With the five (5) product levels in mind, identify how
NIVEA uses each level to add value to its customers,
with their “Sun range” products.
[5]
[5]
[5]
[5]
[10]
[10]
[40
marks]
Distribution Management (placement) and
retailing
CHAPTER 9
What is Distribution all about? (pg.
293)
Do the elements of the marketing mix compliment
each other?
MAJORCHANNELS
OFDISTRIBUTION
(PG.294)
Channe lDe sig n: Structure and
Num be r (pg . 29 7 )
ExclusiveDistribution
Focus strategy
ExclusiveDistribution
Focus strategy
SelectiveDistribution
Differentiation strategy
SelectiveDistribution
Differentiation strategy
IntensiveDistribution
Cost-leadership strategy
IntensiveDistribution
Cost-leadership strategy
More
distribution points
Less distribution
points
THEEXTENTOFDISTRIBUTION
Exclusive
Distribution
Selective
Distribution
Intensive
Distribution
Exclusive
Distribution
Selective
Distribution
Intensive
Distribution
Exclusive
Distribution
Selective
Distribution
Intensive
Distribution
Selective
Distribution
Channel Activities and Functions (pg. 301-306)
Channel Activities or Functions (pg.
302)
 Intermediaries close gaps and provide utility
 Intermediaries resolve discrepancies
 Intermediaries reduce transactions
 Intermediaries synchronise needs, do bulk
breaking and re-assort product offerings
Specialisation in the distribution channel (pg.
307-311)
Channel Management (pg. 312-
315)
What do you think causes
channel conflict?
Horizontal Channel
Conflict
Multi-Channel
Conflict
Channel Partnerships / Co-operation
CHANNEL
Changes in
customer
buying
patterns
Changes in
the product
life cycle
Environment
al Changes
Economic
Conditions
(rise in inflatio n)
Changes in
Industry and
Competitive
Conditions
Changes in
Industry and
Competitive
Conditions
Pressure of
resellers and
Manufacturers
Pressure of
resellers and
Manufacturers
Most difficult stage of
all! Hard to find
retailers to stock or
carry the product
Overall demand
increases
Distribution strategy:
Intense distribution-
geographic expansion
Distribution structures
apply pressure for
reduced prices.
Seek new markets- new
distribution
Difficult to maintain
distribution intensity-
products become
undesirable
Push & Pull Strategies (pg. 315)
PUSH STRATEGY
PULL STRATEGY
Manufacturer Wholesaler Retailer Consumer
Orders
Manufacturer Wholesaler Retailer Consumer
Orders
Channels for Services (pg. 323-340). Combined
with Chapter 13.
Value Chain (pg. 334-336). Combined with
Chapter 12.
Strategic Marketing EBMA 3715 Unit 9 (Chapter 9)

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Strategic Marketing EBMA 3715 Unit 9 (Chapter 9)

Editor's Notes

  1. Aimed to develop your thinking- to help integrate all the work we have done and enhance your practical thinking skills. This will, in turn, help you with your TATA assignemnt.
  2. You are an up and coming designer- sellign exclusive boutique dresses. Would you approach PEP to be your distributor? Why or Why not?
  3. What is your offering- this will determine which channels to use
  4. What route do they take to reach the end consumer? Show new barone cereal
  5. What route do they take to reach the end consumer?
  6. Creative Coca-Cola Vending machine
  7. Istore Was an agent for major service providers.
  8. Things can get out of control very quickly…WHY?
  9. It become difficult to manage so many channels / so many people / contact points.
  10. Ideal market exposure is when a product is available widely enough to satisfy target customer’s needs but not exceed them.
  11. A marketing channel performs the work of moving goods from producers to consumers. It overcomes the time, place, and possession gaps that separate goods and services from those who need or want them. Some of these functions (storage and movement, title, and communications) constitute a forward flow of activity from the company to the customer; other functions (ordering and payment) constitute a backward flow from customers to the company. Still others (information, negotiation, finance, and risk taking) occur in both directions.
  12. Grocery shopping-Trip to Pick n Pay
  13. Pic of their promoso
  14. Woolworths and Engen