2) The marketing manager for a manufacture of specialty watches designed for runners. ask - Would you sell these items through retail stores or would you try to direct marketing * either alone or in combination with retail distribution) ? Why?
3) Many contend that interactive electornic media will revolutionize consumer buying patterns. What is your opinion? What advanatges are offered? Will traditional retail shopping become largely obsolete?
The marketing manager for a manufacture of specialty watches designed for runners. ask - Would you sell these items through retail stores or would you try to direct marketing * either alone or in combination with retail distribution) ? Why?
This is an issue of distribution channel. A channel of distribution comprises a set of institutions, which perform all of the activities utilized to move a product and its title from production to consumption.
Types of Channel Intermediaries.
There are many types of intermediaries such as wholesalers, agents, retailers, the Internet, overseas distributors, direct marketing (from manufacturer to user without an intermediary), and many others. The main modes of distribution will be looked at in more detail.
1. Channel Intermediaries - Wholesalers
? They break down 'bulk' into smaller packages for resale by a retailer.
? They buy from producers and resell to retailers. They take ownership or 'title' to goods whereas agents do not (see below).
2. Channel Intermediaries - Agents
* Agents are mainly used in international markets.
* An agent will typically secure an order for a producer and will take a commission.
3. Channel Intermediaries - Retailers
* Retailers will have a much stronger personal relationship with the consumer.
* The retailer will hold several other brands and products. A consumer will expect to be exposed to many products.
4. Channel Intermediaries - Internet
* The Internet has a geographically disperse market.
* The main benefit of the Internet is that niche products reach a wider audience e.g. Scottish Salmon direct from an Inverness fishery.
* There are low barriers low barriers to entry as set up costs are low.
A description of the size and number of levels in a channel.
1. Zero level
It involve direct marketing consists of a manufacturer selling directly to the final customer. Perishable, non-standardized products, High unit value products will require more direct marketing because of dangers associated with delays.
2. One level channel
It involves one selling intermediary such as retailer. Generally service industry or specialty goods prefer this type of channel.
3. Two level or more channel
It involves more than one ...
This explains and discusses the consumer buying patterns under various situations