marketing3 - why all firms dont sell direct: requires...

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11/5/08 Wegmans in high value added and high price section on perceptual map Walmart in low value added and low price Many retailers in corridor between the two Distribution strategy-“place” Schwan food company skips agent, wholesaler, and retailer-direct marketing channel to consumer Avon-direct marketing company-delivers door to door and sells online-8.7 billion dollar company Tv shopping-sales over 100 billion in 2006 Two largest tv shopping retailers are hsn and qvc Demographics-75% females ages 25-54…?? Telemarketing electronic channels-some direct, some not dell goes straight to consumer but amazon goes from book publisher to book wholesaler to to consumer some electronic channels have exploded and then declined just as quickly- logistical functions must still be performed-can eliminate middleman but not middle functions can’t see products that ordering online-hassle to return if don’t like
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Unformatted text preview: why all firms dont sell direct: requires handling complementary products earn higher return in main business channel functions must be performed: transactional (buying/selling, risk taking), facilitative (making goods attractive), and logistical (gathering, storing, dispersing) where can we move distribution channels so can move in most efficient way efficiency can deal w sears as wholesaler so consumers get wide array of choices manufacturers to wholesalers to retailers peapod-the business model why not home shopping-ordering is easy, its the fulfillment, consumers picky about fresh, consumers dont know brands/sizes etc, hi-speed internet not available, what? Pay a delivery fee?!, delivery times confining, delivery teamsin home-a liability, all items not carried-private label?, coupons, tipping, promotional displays?, privacy? Beliefs about agents vs brokers...
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This note was uploaded on 11/27/2008 for the course AEM 2400 taught by Professor Mclaughlin,e. during the Fall '07 term at Cornell University (Engineering School).

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