Comprehensive Marketing Strategy and Distribution Channels Overview

What is the primary focus of the demand chain view in distribution?

Planning starts with the needs of the target customer.

What are upstream partners in a supply chain?

Firms that supply raw materials, components, parts, information, finances, and expertise needed to create a product or service.

What are downstream partners in a supply chain?

Marketing channels or distribution channels that look toward the customer, including retailers and wholesalers.

What are the four major tasks of marketing channels?

Generate demand, fulfill demand, provide after-sales service, and conduct information/research/feedback.

What are the three types of distribution intensity?

Intensive, selective, and exclusive.

What is the goal of intensive distribution?

To achieve mass market selling through many intermediaries.

What is selective distribution?

Working with selected intermediaries to distribute products.

What is exclusive distribution?

Working with a single intermediary for specialty goods.

What are the steps in channel design decisions?

Analyzing consumer needs, setting channel objectives, identifying major channel alternatives, and evaluating those alternatives.

What should be considered when analyzing consumer needs for channel design?

What target consumers want from the channel, market segments, best channels to use, and minimizing costs.

What factors influence channel strategy decisions?

Market factors, product factors, and producer factors.

What is the significance of channel intensity in distribution?

It affects the choice of distribution strategy based on market, product, and producer characteristics.

What are some product factors that affect channel choices?

Product complexity, product price, product life cycle, and product delicacy.

What are some producer factors that affect channel choices?

Producer resources, number of product lines, and desire for channel control.

What are the areas of focus for service distribution?

Minimizing wait times, managing service capacity, and improving delivery through new channels.

What is the economic outcome of an organization's choice of distribution channels?

It can be quite significant for the organization.

What is the role of the marketing mix in the distribution strategy?

It involves decisions regarding sales, profits, and brand positioning.

What does the STP process stand for in marketing?

Segmentation, Targeting, and Positioning.

What is the purpose of setting channel objectives?

To determine targeted levels of customer service while balancing consumer needs against costs.

What does the channel of distribution strategy encompass?

Type of channel, distribution intensity, channel design, and channel management.

What is the marketing mix?

The marketing mix is the set of controllable, tactical marketing tools—product, price, place, and promotion—that a firm blends to produce the desired response in the target market.

What does the 'Product' in the marketing mix represent?

Product represents the customer solution, encompassing anything offered in a market to satisfy a need or want.

What is the significance of 'Price' in the marketing mix?

Price represents the customer cost and is crucial for value capturing.

Define 'Place' in the context of the marketing mix.

Place refers to convenience and how the product is made available to the customer.

What role does 'Promotion' play in the marketing mix?

Promotion involves communication strategies used to inform and persuade customers about the product.

What is a product?

A product is anything that can be offered in a market for attention, acquisition, use, or consumption that satisfies a need or want.

What is the difference between a product and a service?

A service consists of activities, benefits, or satisfactions that are intangible and do not result in ownership.

What is the Product-Service Continuum?

The Product-Service Continuum illustrates the range from pure tangible goods to pure services, including hybrids.

What are convenience products?

Convenience products are items that customers buy frequently and with minimal effort, such as newspapers and candy.

Define shopping products.

Shopping products are less frequently purchased items that consumers compare on suitability, quality, price, and style, like furniture and cars.

What are specialty products?

Specialty products have unique characteristics or brand identification, leading buyers to make a special purchase effort, such as designer clothes.

What are unsought products?

Unsought products are items that consumers do not think about buying or are unaware of, such as funeral services and smoke detectors.

What challenges are associated with marketing unsought products?

Challenges include lack of motivation, lack of awareness, and hesitant buyers due to the unpleasant nature of the products.

What does service variability refer to?

Service variability indicates that service quality can differ based on who provides the service and the context in which it is delivered.

What is meant by service perishability?

Service perishability means that services cannot be stored for later use, making demand management crucial.

What is the SERVQUAL scale?

The SERVQUAL scale measures service quality across five dimensions: reliability, assurance, tangibles, empathy, and responsiveness.

What does the reliability dimension of SERVQUAL measure?

Reliability measures the ability to perform the promised service dependably and accurately.

What is the importance of the assurance dimension in service quality?

Assurance reflects the knowledge and courtesy of employees and their ability to instill trust and confidence in customers.

What does the tangibles dimension of SERVQUAL assess?

Tangibles assess the appearance of physical facilities, equipment, personnel, and communication materials.

What is the role of empathy in service quality?

Empathy involves providing caring, individualized attention to customers.

What does responsiveness mean in the context of service quality?

Responsiveness refers to the willingness to help customers and provide prompt service.

What is disintermediation in marketing?

Disintermediation is the removal of intermediaries in the supply chain, allowing customers to interact directly with producers.

What are the types of innovation in marketing?

Types of innovation include continuous and discontinuous innovation.

What is the diffusion of innovation?

Diffusion of innovation describes how new products spread through a population, categorized into innovators, early adopters, early majority, late majority, and laggards.