Lecture Notes on Distribution Channels and Marketing Strategy

These flashcards summarize key concepts related to distribution channels and marketing strategies as discussed in the lecture.

What are the two main camps discussed in the context of product distribution?

Marketing camp and Distribution camp.

What is the focus of marketing compared to operations and supply chain management?

Marketing focuses on the finished goods and getting them to customers, while operations and supply chain management focus on sourcing and producing supplies.

How can the price of a product increase along the distribution chain?

A product that costs $2 can increase to $12 by the time it reaches the consumer due to the profit margins desired by all intermediaries.

What role does the wholesaler play in the distribution process?

The wholesaler gathers products from different producers to sell to various retailers.

What is meant by 'contact efficiency' in distribution?

Reducing the number of contacts a producer has to make to sell their product.

How do intermediaries provide value in the distribution process?

They offer services that the manufacturer may not want to provide, such as reaching smaller retailers or managing end consumer sales.

What is the purpose of an agent or broker in product distribution?

Agents or brokers facilitate sales, especially of perishable goods, by connecting producers with retailers.

What differentiates B2B distribution from B2C distribution?

B2B distribution often involves larger quantities and direct relationships between manufacturers and businesses, while B2C focuses on individual consumers.

What are the four types of promotional tactics mentioned in the lecture?

Informing, persuading, connecting, and reminding customers.

What is a perceptual map?

A visual representation of how customers perceive different brands or products along key attributes such as quality and price.

What challenges do companies face when trying to sell green products?

They often need to provide more detailed information to consumers to overcome skepticism or lack of understanding.

How can promotional strategies evolve over a product's life cycle?

They may shift from selective distribution in the introduction phase to more intensive distribution as sales grow, and then back to selective as sales decline.

Why do intermediaries still exist despite the option for direct-to-consumer sales?

Intermediaries provide valuable services such as time, place, and possession utility, which manufacturers may not want to handle themselves.

What is the importance of understanding the retailer's customer for manufacturers?

Manufacturers need to align their offerings and understand consumer needs to effectively sell their products to retailers.

What is the ultimate goal of promotion in marketing?

To effectively convey the value of a product to potential customers to encourage their purchases.