Lecture Eight Customer service and marketing3

Price
Price is the amount of money the manufacturer receives for its product. Price changes are not limited to changes in a product's listed price. price differs depending on the channel of distribution used. reducing prices
Why are Marketing Intermediaries Used?
Greater efficiency in making goods available to target markets. Offer the firm more than it can achieve on it's own through the intermediaries:
Logistics
Lot quantity cost
Warehousing Cost
Order processing and information asking price
Product
Product is the bundle of attributes the customer receives from the purchase. Management may allocate resources to product development to bring new products to market or to improve the quality of existing products.
Consumer Goods Channels & Levels
Industrial Goods Channels & Levels
Networked distribution channels
传统的 供应商/制造商 戴尔电脑 传统的 供应商/制造商 书籍 传统的 供应商/制造商 联合航线
传统的市场分销商
Changes in the product offering may have impact on the profit. e.g. Haier, Hisense and ChangHong have similar products offering Reducing quality may erode long-term profitability
Definition
It is defined as the collection of organization units, either internal or external to the manufacturer, which performs the functions involved in product marketing.
Place
Place represents the channel of distribution. Place represents the manufacturer's expenditure for customer service, which can be thought of as the output of logistics system.
Centralized exchange will reduce the number of transactions necessary (market contacts). The advantage of an intermediary becomes more evident as the number of specialized producers increases. A manufacturer selling to low-volume customers could substantially reduce selling and logistics costs by using a wholesaler or distributor.
Contacts Experience Specialization Scale of operation
Match supply and demand
Reduce costs
lower transportation costs, because larger volumes will be shipped; lower inventory carrying costs; lower order processing and handling costs; reduced field warehousing costs; fewer bad debts
Factors considered in determining Channel structures
corporate and marketing objectives operating philosophy strengths and weaknesses infrastructure of manufacturing facilities and warehouses.
Achieving the necessary sales increase in a mature market is very difficult. The effect of the price elasticity of demand needs to be considered.
Promotion
marketing functions
The marketing functions are pervasive. They include buying, selling, transporting, storing, grading, financing, bearing market risk, and providing marketing information. Any organizational unit that performs one or more of the marketing functions is a member of the channel of distribution. Members of the channel of distribution: wholesaler, retailer, carrier, warehouser, consulting firm…
Channel of Distribution
Definition Functions Performed by Distribution Channels Channel-Design Decisions Channel-Management Decisions Channel Dynamics
传统的市场分销商
因特网市场集成商 书籍 –
因特网市场集成商 旅游网
直销
集成搜索
最 终 顾 客
最 终 顾 客 间接定价
最 终 顾 客
பைடு நூலகம்
The evolution of marketing channels
In primitive culture, most households meet their own needs. Exchange takes place when there is a discrepancy between the amount, type and timing of goods available and the goods needed. Channels of distribution develop when many exchanges take place between producers and consumers.
Decentralized versus centralized exchange
In general, the number of transaction necessary for decentralized exchange can be determined using the formula: n(n-1)/2, n is the number of specialized producers. The number of transactions in a central market operated by one intermediary is generally equal to n. The ratio of advantage of the centralized exchange equals n-1/2.
Product Price Promotion Place
Cost Trade-offs in a Logistics System
Product Price
PlaceCustomer service level
M arketing
Promotion
Inventory Carrying cost
Transportation Costs
Control over the performance of functions Speed of delivery and communication The cost of operation
Choose the intermediaries to be used and establish policies regarding channel members Devise information and control systems to ensure that performance objectives are met
Distribution Channel Functions
To successfully market its product , What should be done by a manufacturer?
select the appropriate channel structure Direct selling & indirect selling
Lecture 8
Customer Service and Marketing
Sub-topics
Marketing mix Customer Service Relationship of Customer Service to Successful Marketing
1. Marketing mix (4Ps)
Most distribution channels are loosely structured networks of vertically aligned firms. The specific structure depends to a large extent on the nature of product and the firm's target market.
Promotion refers to both advertising and personal selling. Increasing expenditures for advertising will increase sales, but at some point additional advertising expenditures will not increase sales enough to justify the expenditure. e.g.秦池酒厂 The amount of sales support required depends on the channel of distribution used. e.g. Amway Increased expenditures for promotion must lead to an equal or greater increase in contribution as a result of increased sales.