Lectures 10A and 10B (extra reading needed)

Question 1

What are the external decisions need to be considered for setting up a distribution channel

Answer 1

Customer characteristics
Nature of the product
Nature of the demand
Competition
Legal Regulation

Question 2

What are the 3 internal decisions need to be considered when discussing the distribution channels

Answer 2

Decisions concerning the structure of the channel
Major decision choosing a mix of distribution channels
Managing and controlling the decisions

Question 3

What does distribution involve?

Answer 3

Distribution involves activities that make products available to customers when and where they want to purchase them

Question 4

What are the factors in which determine whether someone can buy a product

Answer 4

If the product is in adequate quantities
In a convient location
At a time the consumer wants to buy

Question 5

What does a marketing channel enable

Answer 5

Create utility
Possession
form
Facilitate efficient exchange
Reduces costs
reduces transactions

Question 6

What is the order/reorder point

Answer 6

The amount which products will be restocked - note that the consumer will

Question 7

What are the 3 market coverage strategies

Answer 7

Exclusive
Selective
Intensive

Question 8

what are the 5 types of flows in a distribution channel

Answer 8

Physical flow
Title flow
Payment flow
Information flow
Promotional flow

Question 9

what are the 3 types of integration in a marketing channel

Answer 9

Vertical integration
Horizontal Integration
multichannelintergration

Question 10

What are the 4 factors which effect the structure of the distribution channel

Answer 10

Market coverage
Distribution length and width
Control costs
Degree of integration

Question 11

what is exclusive market coverage

Answer 11

selecting one intermediary in a specific region

Question 12

What is Selective market coverage

Answer 12

choosing a number of intermediaries for each market to be penetrated

Question 13

What are control costs

Answer 13

the control of one member in the vertical distribution channel it’s ability to influence the decisions and actions of other channel members

Question 14

What are the factors which influence channel width

Answer 14

product type
product lifecycle
Price
Brand loyalty
Purchase frequency
Product Uniqueness
Selling requirement
Service requirement
Technical complexity

Question 15

what are the functions of an Intermediary

Answer 15

Carrying of inventory
Demand generation or selling
Physical distribution
After-sales service
Extending credit to customers

Question 16

how is integration achieved

Answer 16

Acquisition or light-ownership

Question 17

what are reverse flow-channels

Answer 17

when the products useful life ends or someone doesn’t want it anymore

Question 18

What is Dual Marketing

Answer 18

same product is being sold to the consumer and the market at the same time

Question 19

What is cross-channel distribution

Answer 19

Partyis left behind and distribution channels start to coordinate

Question 20

What is omnichannel strategy

Answer 20

Goal is to deliver a seamless experience for the customer to better engage him or her

Question 21

What is an example for multi-channel distribution strategy

Answer 21

Dell

Question 22

What are the advantages for multiple distribution channel strategies

Answer 22

Extended market coverage and increased sales volume
If suppliers can avoid direct price comparison across channels through they can charge higher prices through some channels
Lower absolute or relative cost
Better accommodation of customers evolving needs
More and better information

Question 23

Disadvantages of multiple channel distribution strategies

Answer 23

Coordination of prices across channels costs extra resources
Coordination of products offered to different channel members (with different needs and requirements) costs extra resources
Loss of distinctiveness Increased organisational complexity

Question 24

what are the 5 factors which are included in managing and controlling distribution channels

Answer 24

Selecting intermediary
Contracting
Motivating
Controlling
Termination

Question 25

What are the types of channel conflict

Answer 25

Vertical channel conflict Horizontal Channel conflict Multi-channel conflict

Question 26

What are the strategies for managing channeling conflict

Answer 26

Strategic Justification Dual compensation superordinate goals Diplomacy Co-optation Employee exchange Joint membership

Question 27

how have digital channels made consumers more demanding

Answer 27

digital channels have connected buyers and sellers globally Expect seamless integration Customers want the advantages of both physical stores (personalized services) and digital (Vast selection Expect seamless integration between the two channels wants customer support Check online for product availability return a product purchased from a nearby store

Question 28

What does digital channels provide in international markets

Answer 28

provides opportunities for interactive shopping in international markets and allows more contact with the consumer

Question 29

What does digital channels enable

Answer 29

SME's to access niche markets due to traditional market channels being to expensive Internet offers direct contact with the consumer base throughout the globe establishes infrastructure in foreign countries

Question 30

what are the favorable international market characteristics for digital channels

Answer 30

Ineffencies in traditional distribution channels Market fragmentation Minimum Scale barriers enables distribution of commodity and short-lifecycle products

Question 31

What are the two types of E-commerce companies

Answer 31

Pure clicks Clicks and Bricks

Question 32

what are pure clicks

Answer 32

Companies who have launched a website without any previous existence as a firm

Question 33

what are the examples of a pure click companies

Answer 33

Search engines - Google Transaction sites - Ebay Content sites - Netflix Enabler sites - booking.com

Question 34

What are the success factors for a pure click company

Answer 34

Security and Privacy Fast delivery services Good customer services Avatars fast, simple and easy to use websites personal interaction Easy returns

Question 35

What are Bricks and clicks companies

Answer 35

Existing companies that have added an site as a channel for sales and/or distribution

Question 36

what are the strategies which can appease intermediaries whilst integrating a digital channel

Answer 36

Offer different products online and offline Offer offline partners higher commission Take order online but allow retailers to manage delivery

Question 37

what is an example for successful integration with physical and digital channels

Answer 37

Harvey Davidson

Question 38

why is logistics important for an organization

Answer 38

impacts the brand image from efficient services Marketing strategy should be enhanced by logistics

Question 39

What are the marketing objective for logistics

Answer 39

Getting the right goods to the right place at the right time for the least cost

Question 40

what does consumer behavior suggest about logistics

Answer 40

Consumers would rather consistency than failed promises

Question 41

what are the 4 main logistic processing decisions

Answer 41

Order Processing Warehousing Inventory Transportation