Premium Essay

Role of Marketing Channels

In: Business and Management

Submitted By aaa111t
Words 252
Pages 2
Gaining market share in many market segments requires battling competitors on a daily basis to gain new customers and keep existing ones. The use of attack strategies needs to be part of a broader strategic market plan that looks at the inherent weaknesses of competitors in existing markets and emerging high growth opportunities in new market segments. The frontal, flank, encirclement, and bypass attacks are discussed in this paper as viable strategies for gaining market share while retaining existing customers. The last attack strategy of Guerilla warfare is also analyzed as a means to attaining a strategic market plan.
The frontal attack is one that concentrates on attacking the fundamental aspects of a competitor’s marketing strategy. This includes attacking pricing, promotional programs, the product itself, and distribution strategies as well. The use of price as a differentiator by new market entrants is an example of a common frontal attack. Southwest Airlines’ use of low-price fares and free baggage when airlines today are beginning to charge for extra bags is an example of a front attack strategy. Linksys, the personal networking division of Cisco systems, also relies heavily on frontal attack strategies to gain access to new markets, including the higher-end enterprise networking market. Linksys also relies on their production efficiencies learned from serving the low-end of the wireless market to gain cost and price advantages in the enterprise networking markets. These markets’ needs are dominated by the need for connecting thousands of users to wireless and wired…...

Similar Documents

Premium Essay

Marketing Channels

...KEY TERMS Marketing Channel (channel of distribution) a set of interdependent organizations that eases the transfer of ownership as products move from producer to business user to consumer Channel members all parties in the marketing channel who negotiate with one another, but and sell products, and facilitate the change of ownership between buyer and seller in the course of moving the product from the manufacturer into the hands of the final consumer Discrepancy of Quantity the difference between the amount of product produced and the amount an end user wants to buy Discrepancy of Assortment the lack of all the items a customer needs to receive full satisfaction from a product or products Temporal Discrepancy a situation that occurs when a product is produced but a customer is not ready to buy it Spatial Discrepancy the difference between the location of a producer and the location of widely scattered markets Retailer a channel intermediary that sells mainly to consumers Merchant Wholesaler an institution that buys goods from manufacturers and resells them to businesses, government agencies, and other wholesalers or retailers and that receives and takes title to goods, stores them in its own warehouses, and later ships them Agents and Brokers wholesaling intermediaries who do not take title to a product but facilitate its sale from producer to end user by representing retailers, wholesalers, or manufacturers Logistics the efficient and cost-effective forward and......

Words: 583 - Pages: 3

Premium Essay

Marketing Channel

...Australians’ bone health. 2. Nature of the marketing problem - Misunderstand and ignored by human natural instinct: General public has little knowledge about bones disease, low awareness on bone disease prevention and treatment, especially on age/gender concern. - Industry’s general environment: No outstanding campaign regarding to effectively educate Australians about the impacts of poor bone health. - To be more specific on the target market (Males, age 25 to 45): Males in this age range have few motivations or are lack of time to check their physical problems regularly; and as a result, it’s difficult to get their attention on bone health care. 3. Key marketing objectives - Increase the brand awareness of Healthy Bones Australia (HBA) among target market by 30% by the first 3 months of the campaign and by 10% each continuous quarter. - Improve the target market’s knowledge about and awareness on bone disease by 20% by the first 3 months of the campaign and by 10% each continuous quarter. - Being positioned in the top of target market’s mind, become one of the most recognised programs among other current public health awareness campaigns. 4. The scope of the project The project aims to understand the target audience’s perception on bone disease prevention and analyse the data to identify the gap on concept promotion in the potential target group to establish better marketing strategies in order to promote......

Words: 971 - Pages: 4

Premium Essay

Marketing Channels

...distribution channels, let’s understand the two different types of channel levels which are direct and indirect distribution. In direct distribution the consumer product goes directly from the producer to the consumer without any diversions or deviation in the process. An example that was used in the text was that of Schwan Foods and how they deal directly with the consumer utilizing its internal sales departments or online ordering (Kerin, 2013). Then there is indirect distribution which involves other channels than just the consumer. There is also the agent, wholesaler and the retailer. An example of that is as follows. The auto industry sales directly to the retailers or dealerships, and the retailers deal with the public or consumer. A candy company on the other hand sells its products to a wholesaler warehouse company first which in turns sell to the retailers who deal with the consumers. Then there are companies like Mansar Products whom is a manufacturer that has agent who represent them. Those agents sell to the wholesalers who deal with retailers that deal with the public or consumer. With so many stages of distribution a company has to make up their mind which channels they will use to get their products in the hands of the consumer. This is all taken care of during the research and development stages of the marketing strategy. The process just explained is the conventional marketing system. There is a vertical, horizontal and multi-channel marketing......

Words: 707 - Pages: 3

Premium Essay

Fashion Channel Marketing Segmentation

...Fashion Channel Case Write Up Summary Beginning in the year 2006, the fashion channel has suffered from fierce competition from other channels, which are non-dedicated fashion networks. Both the viewership and the revenue increase were dropped down sharply. Actions need to be taken immediately to drive the company back on track. There were at least two impediments lying ahead, like the TFC did not know well in viewer’s interest, awareness, perceived value, it may cause the loss of the viewers, and there was no program that would distinguish the TFC from other competitors – show time & show content. By increasing the TFC’s advertising and rating, we will maintain the current avid viewers and focusing on Fashionistas and Planners & Shoppers, ages ranged from 18-34, female. Getting close to the Focus group by knowing viewers well, to increase their satisfaction, together with developing a Trump Show, Tailor-made programs, and inviting Opinion leaders to increase the rating and attracting more advertisers to make revenue. Goal The Fashion channel was founded in the year 1996, who was a successful cable TV network and the only network dedicated solely to fashion by up-to-date and entertaining features and information broadcast 24 hours per day, 7 days per week. It had experienced constant revenue and profit growth above the industry average almost since the beginning. The channel was also one of the most widely available niche networks, which gave the channel a......

Words: 3119 - Pages: 13

Premium Essay

Marketing Channels

...mayor language is Spanish which can cause a difficulty for ORANA, while in New Zealand there is no such language barrier as English is the predominant language there. I assume that the environment consciousness is higher in New Zealand as it is a developed country and it has signed the Kyoto Protocol limiting its greenhouse gases emissions while Peru hasn’t. The forth is the technological factors which include technology incentives, research and development activity, technological aspects such as internet usage. These factors are important regarding possibilities for innovation, marketing channel decision and they can influence barriers to entry which can make a market more attractive. Examining the internet usage in the two countries, we can see that 36% of Peru’s and 88% of New Zealand’s inhabitants uses internet. This means that in case of deciding on using e-business as a distribution channel, ORANA has more potential in New Zealand. Regarding research and development activity, New Zealand spend 1,2% of its GDP while Peru less than 0,1% of its GDP. This means that there is more chance for developing innovations and new producing facilities in New Zealand. The fifth is the environmental factors which include climate, and weather and ecological conditions. It is especially important for ORANA as if it wishes to establish a production site in one of the two countries it is important what kind of fruits are available in that country. Both of the country has a rich......

Words: 5454 - Pages: 22

Premium Essay

Apple and Marketing Channels

...Apple´s success is based primarily on their high-quality and innovative products, their approach to their marketing channels was, and still is, one of the company´s key advantages. Before Steve Jobs returned to Apple in 1997, the company had relied heavily on a four-level channel structure where Apple products had to go from the manufacturer (Apple), to a wholesaler (E.g. Ingram Micro), to a retailer (E.g. CompUSA), and finally to the end consumer. After restructuring their distribution strategy, Apple started offering its product through a multi-channel strategy. While the company decided to keep its four-level channel structure, it added three-level and two-level channel structures using Apple Stores and the Online Apple Store (Schmidt, 2008). This reduction of intermediaries reduced costs associated with distribution and gave the company more control over its marketing efforts. The result was an increase in Apple’s profits and, consequently, and an increase in Apple’s power in the consumer electronics industry. Nonetheless, even when Apple used narrower channel structures on its multi-channel strategy, it still uses many members in its ancillary structure such as shipping companies, insurance agencies, and others organization that have a level of specialization and contractual efficiency that is beyond Apple’s reach. In conclusion, a redesign in Apple’s marketing channels, among other variables, transformed the company into the gigantic organization it is......

Words: 337 - Pages: 2

Premium Essay

Marketing Channels

...MARKETING CHANNELS A marketing channel is a set of practices or activities necessary to transfer the ownership of goods, and to move goods, from the point of production to the point of consumption and, as such, which consists of all the institutions and all the marketing activities in the marketing process. A marketing channel is a useful tool for management. An alternative term is distribution channel or 'route-to-market'. It is a 'path' or 'pipeline' through which goods and services flow in one direction (from vendor to the consumer), and the payments generated by them flow in the opposite direction (from consumer to the vendor). A marketing channel can be as short as being direct from the vendor to the consumer or may include several inter-connected (usually independent but mutually dependent) intermediaries such as wholesalers, distributors, agents, retailers. Each intermediary receives the item at one pricing point and moves it to the next higher pricing point until it reaches the final buyer Roles of marketing channel in marketing strategies -Links producers to buyers. -Performs sales, advertising and promotion. -Influences the firm's pricing strategy. -Affecting product strategy through branding, policies, willingness to stock. -Customizes profits, install, maintain, offer credit, etc. Coordinated Channel Marketing - Brands carry out online and offline advertising on behalf of channel partners to aid them in generating sales of their branded products. Those......

Words: 2641 - Pages: 11

Premium Essay

Marketing Channels

...[Type the company name] | Marketing channels | 81,105, 117, 93, 69 | | [Type the author name] | 9/21/2010 | Marketing channel: A set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user Channel level: A layers of intermediaries that the perform some work in bringing the product and its ownership closer to the final buyer. Channel conflict: Disagreement among marketing channel members. Vertical marketing system :A distribution channel structure in which producer wholsers , and retailers act as a unified system one channel members owns the others ,has contracts with them or has so much power that they all cooperate Future vertical marketing system divided in to two .They are 1.conventional marketing system 2.vertical marketing system Vertical marketing system: A vertical marketing system comprises of the producer, wholesaler and retailer acting as a unified system. One channel member, the channel captain owns the members and has so much power that they all cooperate. It arose as a result of strong channel member’s attempts to control channel behaviour. There are three types of VMS: CORPORATE, ADMINISTERED AND CONTRACTUAL. CORPORATE VMS: A corporate VMS combines successive stages of production and distribution under single ownership. For example Sears obtains over 50% of the goods it sells from companies that it partly or wholly owns. ADMINISTERED......

Words: 2012 - Pages: 9

Premium Essay

Marketing Channel with Social Media

...This paper will try to analyse and synthesize four article journals around the scope of marketing channel with social media. Analysis and recommendation to the problems identified about brand loyalty will be discussed after presentation and summary for all the journal articles. Jay M. Bernhardt Darren Mays Amanda K. Hall, (2012),"Social marketing at the right place and right timewith new media", Journal of Social Marketing, Vol. 2 Iss 2 pp. 130 - 137. This journal article is set to find out the effect of new media in social marketing. This paper is to seek to discuss how the new media revolution can improve social marketing by bringing the “place” closer to the consumer. The study utilised the authors viewpoint and arguments in understanding the impact that the social media brings to consumer and business owner in terms of bringing them closer together. No empirical methodology is used to present their arguments. The findings from this journal is that the rapid growth of social media and the massive use of mobile phones will give social marketers and advantage in engaging with the customers in a radical new way. This type of marketing channel is effective in relationship marketing and is potential in getting high volume of consumer-business owner engagement. In term of place, it brought them together in real time interactions. The authors suggested that social media has bring positive impact in consumer-business owner relationship. Not long ago, consumer may not be able to...

Words: 1597 - Pages: 7

Premium Essay

Marketing Channels

...Ch10 Marketing Channels Supply Chinas and the Value Delivery Network Upstream: Supply raw materials, components, parts, information, finances, and expertise Downstream: Marketing channels towards customers, including wholesales and retailers, * Supply chain: make-and-sell view, which suggest productive inputs as starting point * Demand chain: Sense-and-respond view But sometimes it takes a step-by-step, linear view of purchase-production-consumption activities Value Delivery network: A network composed of company, suppliers, distributors, and ultimately customers who partner with each other to improve the performance of the entire system in delivering customer value The Nature and Importance of Marketing Channels Marketing Channel (Distribution channel): A set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user * Affect every other marketing decision * Use imaginative distribution systems * Involve long-term commitment to other firms How Channel Members Add Value * Give up some control over how and to whom to sell products * But they create greater efficiency in making goods available to target markets by better contacts, experience, specialization and scale of operation * Intermediaries reduce the amount of work by both producers and consumers * Transform assortments of products made by producers...

Words: 1295 - Pages: 6

Premium Essay

Role of Distribution Channel in Fmcg

...Vertical marketing This relatively recent development integrates the channel with the original supplier - producer, wholesalers and retailers working in one unified system. This may arise becauseone member of the chain owns the other elements (often called `corporate systemsintegration'); a supplier owning its own retail outlets, this being 'forward' integration. It is perhaps more likely that a retailer will own its own suppliers, this being 'backward'integration. (For example, MFI, the furniture retailer, owns Hygena which makes its kitchenand bedroom units.) The integration can also be by franchise (such as that offered byMcDonald's hamburgers and Benetton clothes) or simple co-operation (in the way thatMarks & Spencer co-operates with its suppliers).Alternative approaches are 'contractual systems', often led by a wholesale or retail co-operative, and `administered marketing systems' where one (dominant) member of thedistribution chain uses its position to co-ordinate the other members' activities. This hastraditionally been the form led by manufacturers.The intention of vertical marketing is to give all those involved (and particularly thesupplier at one end, and the retailer at the other) 'control' over the distribution chain. Thisremoves one set of variables from the marketing equations.Other research indicates that vertical integration is a strategy which is best pursued at themature stage of the market (or product). At earlier stages it can actually reduce profits.......

Words: 1471 - Pages: 6

Premium Essay

Marketing Channel

...Case 11 Star Chemical Company Choosing Alternative Channel Structures Summary: The star chemical company is an old-line manufacturer of chemicals, experiencing a profit slump due to excess capacity and price competition. The company recently formulated a new line of chlorinated organic chemicals that can be used as a germicidal chemical for swimming pool market. They believe it would bring them an opportunity to enter the consumer market and seek the best distribution alternative. A. There are 4 major distribution alternatives available for Star Chemical Company. First, the company can sell the germicidal chemical to consumers directly. This would bring the company the highest profit since there is no middleman. However, it could cause a low inventory turnover since their own sales force does not have an experience in consumer market. What it means is that the company’s money can be tied up in inventory that makes no profit. Secondly, the company can sell the product to retailers directly without going through distributors and wholesalers. The company would still make relatively high profit due to elimination of intermediaries. There would be less pressure on raising consumer awareness of the product since retailers already gained consumers’ trust. One downside of this alternative would be the company may be required to do a lot of marketing activities to place more of their product on the shelves. Third, the company can sell the......

Words: 464 - Pages: 2

Premium Essay

Marketing Channel Distribution

... Marketing Channel Strategy This page intentionally left blank Eighth Edition Marketing Channel Strategy Robert W. Palmatier University of Washington’s Foster School of Business Louis W. Stern Northwestern University’s Kellogg School of Management Adel I. El-Ansary University of North Florida’s Coggin College of Business Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montréal Toronto Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editor in Chief: Stephanie Wall Acquisitions Editor: Mark Gaffney Program Manager Team Lead: Ashley Santora Program Manager: Jennifer M. Collins Director of Marketing: Maggie Moylen Executive Marketing Manager: Anne Fahlgren Project Manager Team Lead: Judy Leale Project Manager: Thomas Benfatti Operations Specialist: Nancy Maneri Cover Designer: Suzanne Behnke Creative Director: Jayne Conte Digital Production Project Manager: Lisa Rinaldi Full Service Vendor: Integra Software Services Pvt. Ltd. Full Service Project Manager: Anandakrishnan Natarajan/Integra Software Services Printer/Binder: Courier/Westford Cover Printer: Lehigh-Phoenix Text Font: 10/12, ITC Garamond Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on appropriate page within text (or on page xix). Copyright © 2015 Pearson Education, Inc., publishing as......

Words: 236095 - Pages: 945

Premium Essay

The Role of Marketing

...The Role of Marketing DeVry University Introduction to Business and Technology, Week 5 research paper Describe, explain and address the roles of Marketing. How does marketing research provide information to answer the four Ps of marketing? How do those roles differ in a business versus a non-profit organization?  The Role of Marketing Marketing is the process of communicating the value of a product or service to customers, for the purpose of selling that product or service. For a business to survive in today’s world, the business owner must market their products or services to attract consumers. Once the consumers are onboard a business owner must appeal to these consumers by using and applying different marketing strategies to keep them and be able to want them to return and continue buying their product and/or using their services. How does marketing research provide information to answer the four Ps of marketing? The Four P’s of marketing consist of Product, Promotion, Price and Place. The product is obviously the most important of the P’s. Research is needed to find out if the product appeals to the consumer first. This is usually done through surveys or observation of similar products to obtain the interest or need. Many different things can attribute, such as size, quantity, availability, along with time of the year. The Promotion part is what will get the consumer’s attention, whether its through newspaper flyers, radio, TV, physical......

Words: 1148 - Pages: 5

Premium Essay

Nike ( Marketing Channel)

...University of Essex Business School BE-532 Marketing Channels Nike- Channel Strategy and Conflicts. Individual Report Submited to:Dr. Antonello Romano Name:Virena Georgieva Student ID:0948588 Introduction The main market quality athletic footwear, clothing, sportswear and equipment supplier in U.S. is NIKE. The company’s name, which in fact means in the Greek goddess of victory, has been market leader since 1964. Philip Knight, co-founder and chairman of NIKE, has been running this form for over 48 years and focused on few core corporate areas- SCM (Supply Chain management), brand building and sales. NIKE has been introducing its manufacturing in low-cost countries such as Indonesia, Vietnam, Korea and China. Furthermore, while networking with hundreds of manufacturing partners which did not essentially provide low-cost production, NIKE managed to create global supply chain which indeed gained greater importance to the company. In order to ensure smooth integration with all the manufacturers, NIKE’s global supply chain became of critical importance of the firm. This report will represent the events that lead NIKE to the development of new channel structure, channel conflicts and power. Nike’s original channel structure NIKE has established very wide value chain throughout its history. To start......

Words: 2576 - Pages: 11