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Questions and Answers
What is the fundamental principle of marketing mentioned in the text?
On what basis are segments best defined?
What is a marketing channel viewed as?
What is the term for the value-added services created by channel members and consumed by end-users?
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What decision involves choosing the exact identity of the channel partner to use at each channel level?
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What type of distribution involves having a product available in many retail outlets in a given market area?
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What is the primary goal of the channel design process?
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What is the outcome of effective channel implementation?
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What is the primary focus of the channel implementation process?
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What is the purpose of gap analysis in the channel design process?
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What is involved in the channel design process?
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What is the goal of splitting the workload in the channel design process?
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Study Notes
The Marketing Channel Challenge
- Involves two major processes: designing the right channel and implementing that design
- The design process involves segmenting the market, choosing target segments, and producing channel service outputs for target end-users in the most efficient way possible
Channel Design Process
- SEGMENTATION: Recognize and respond to target customers' service output demands
- Decisions About Efficient Channel Response
- CHANNEL STRUCTURE: Identify intermediaries in the channel, their roles, and numbers
- SPLITTING THE WORKLOAD: Determine responsibilities among channel members
- DEGREE OF COMMITMENT: Decide on distribution alliances, vertical integration, or ownership
- GAP ANALYSIS: Identify needed changes to achieve efficient channel design
Channel Implementation Process
- CHANNEL POWER: Identify sources of power for all channel members
- CHANNEL CONFLICT: Identify actual and potential sources of conflict strategically, subject to legal constraints
Market Segmentation
- Involves splitting a market into groups of end-users who are maximally similar within each group and maximally different between groups
- Segments are best defined based on demands for the outputs of the marketing channel
Marketing Channel
- Is more than just a pipe for product; it adds value to the product through service outputs
- Service outputs are created by channel members and consumed by end-users along with the product purchased
Channel Member Selection
- Decide whether to use independent distributors, sales representatives, trucking companies, financing companies, export management companies, etc.
- Determine the exact identity of channel partners to use at each channel level
- Decide on channel intensity (intensive, selective, or exclusive distribution) based on efficiency and implementation factors
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Description
This quiz covers the two major processes of designing and implementing marketing channels. It involves segmenting the market, choosing target segments, and producing channel service outputs efficiently. Test your knowledge of marketing channel design and implementation!
