BUS131D_Lecture13_Handout.ppt

BUS131D_Lecture13_Handout.ppt - New Venture Distribution...

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New Venture Distribution Dr. Michael Merz College of Business San Jose State University
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Dr. Michael Merz College of Business, San Jose State University 2 Today’s Agenda (Hybrid) Distribution Channels Disintermediation The Internet: Changing the Face of Business Benefits of Selling on the Web Factors to Consider before Launching into E-Commerce 12 Myths of E-Commerce E-Commerce Fulfillment Strategies Tracking Web Results Measuring Online Performance
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Dr. Michael Merz College of Business, San Jose State University 3 Distribution Channels Few new ventures sell their market offerings directly to the final consumers. Instead, most new ventures use intermediaries to bring their products to market – in essence, forming a distribution channel (or channel of distribution). The use of intermediaries results from their greater efficiency in making goods available to target markets.
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Dr. Michael Merz College of Business, San Jose State University 4 Distribution Channels The number of channel members determines the length of a marketing channel . On each channel level, intermediaries perform some work in bringing the product and its ownership closer to the final consumer. Distribution channels are, therefore, also referred to as value-delivery networks .
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College of Business, San Jose State University 5 Hybrid Distribution Channels As a new venture, it makes sense to utilize the distribution channel(s) that are preferred by each target niche market. This may result in a multiple-channel distribution system (= hybrid distribution channel ). Distribution concept testing important to identify best means to distribute new venture market offerings to target niche markets. Indirect distribution (with intermediaries) Disadvantages • Harder to control. • Can create horizontal and vertical channel conflict . Advantages
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BUS131D_Lecture13_Handout.ppt - New Venture Distribution...

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