Chapter 10

Chapter 10 - Chapter 10 Marketing strategy planning...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 10 Marketing strategy planning decisions for place o Place: making goods and services available in the right quantities and locations, when customers want them Place arrangements can dramatically change the competition in a product market o Channel of distribution: any series of firms or individuals who participate in the flow of products from producer to final user or consumer Place decisions are guided by ideal place objectives o Product classes suggest place objectives o Place system is not automatic Several different product classes may be involved in different market segments view products in different ways Develop different strategies for place arrangements o Place decisions have long run effects Usually harder to change than product, promotion or price Channel systems o Producers have to decide whether to handle whole distribution jobs themselves or use intermediaries or specialists Distribute direct ly to final customer because they want to control whole marketing job Serve target customer at lower price Do work more effectively Internet makes direct distribution easier If firm is in direct contact with customers it is more aware of changes in customer attitudes Better position to adjust marketing mix Sometimes suitable intermediaries may not be available Direct selling is common with business products Service firms often use direct channels Since service is produced in front of customer, little need for intermediary Don’t confuse with direct marketing: direct communication between a seller and individual customer using a promotion method or other than face to face personal selling Primarily concerned with promotion not place Usually requires significant investment in facilities, people and IT Indirect Used often when consumers are spread out throughout many geographic areas and often prefer to shop for certain products at specific places Intermediaries reduce a producer's need for working capital by buying the producer's output and carrying it in inventory until its sold Specialists help adjust discrepancies and separations between producers and consumers Provide info to bring them together Often able to anticipate consumer needs and forecast demand more accurately
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Discrepancy of quantity : difference between the quantity of products it is economical for a producer to make and the quantity a final user
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/05/2012 for the course BUSI 406 taught by Professor Perreault during the Fall '11 term at UNC.

Page1 / 5

Chapter 10 - Chapter 10 Marketing strategy planning...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online