CLEP Principles of Marketing Study Notes

Usually done at the retail level an example being

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available in one place. Usually done at the retail level-- an example being grocery stores putting competing brands of canned foods together. Banner Advertisement - Quite often, with the results of an Internet search , an advertisement is presented on the page. Unique to the Internet. Internet cookies include personalization, website activity tracking and one to one marketing. Cookies are small text files that contain information sent by a web server to be stored on a client's computer running a web browser . Later the cookie can be read back from that browser. With one to one marketing , cookies are used to serve up advertising targeted to the user. Cookies are used to track where site visitors go, what banner ads they click on and other information that allows advertisers to customize advertising to match the profiles of potential customers. Direct Channels - Distribution channels which involve the direct movement of goods from the producer to consumers. Simplest of the distribution channels, but they are not necessarily the cheapest or the most efficient method of distribution. Indirect Channels - Distribution channels which involve independent intermediaries, or middlemen, to move the goods from the producer to the consumer. Most organizations use Indirect Channels involving one or more intermediaries. Channel Length - number of levels in a distribution channel--the number of intermediaries a product has to go through to reach the consumer. Channel Width - number of members at each level of the distribution channel. For example, if one level consists of wholesalers, the number of wholesalers would be the Width . Intensity of market coverage - number and kinds of outlets in which a product is sold--in other words, the number of intermediaries involved at the wholesale and retail levels of the distribution channel. Intensity can range from: 1. Intensive Distribution Strategy - all outlets are used for distributing a product. Appropriate for convenience products-- consumers want maximum availability at a store located nearby with minimum time spent looking for the product. 2. Selective Distribution Strategy – only some available outlets in an area are chosen to distribute a product; it is usually appropriate for shopping goods. Often used for products when customer service or some other special (attention) service must be offered to the buyer. 3. Exclusive Distribution Strategy- only one or two intermediaries within each market are used. The least intensive of the distribution strategies is exclusive distribution, which involves using only one or two outlets in each market. Not appropriate for convenience products or most shopping products. It is usually used for products for which there is a very limited market. An example of a product distributed exclusively is the Bentley automobile. There are 2 parts to a brand:
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Usually done at the retail level an example being grocery...

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