AEM 240 11.7 - o Better product knowledge o Concentrate on...

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AEM 240 11/7/07 Peapod: the business model Use computers to organize skus, get someone to pick it up, consumer pays for delivery, product at front door o Doesn’t work because: o Ordering is easy, it’s the fulfillment o Consumers picky about fresh o Consumers don’t know brands/sizes, etc. o Hi-speed internet not available what? Pay a delivery fee? o Delivery times confining o Delivery teams in home-a liability o All items not carried. PL? o Coupons, tipping, promotional displays? o Privacy? Beliefs about agents vs. brokers Agents (manufacturer sales force)
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Unformatted text preview: o Better product knowledge o Concentrate on one product o More aggressive since future lies with firm o Some customers prefer dealing direct • Brokers o Generally cheaper (esp at low volumes) o More people, thus wider coverage o More aggressive due to commissions (only paid on commissions) o More local/regional contacts o Some customers prefer dealing with broad lines Vertical Marketing Systems • Corporate-integrated • Contractual o Wholesaler sponsored voluntary o Retailer sponsored co-op o Franchising •...
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