1 = mixture of general knowledge
2 = all about product
3 = also a mixture but there is a requirement to give examples 4 = services
5 = all about communication. (see and know: communication model and discuss how the model works.)
Coca-Cola, milk, bread. Distribution through every reasonable outlet in a market. Where the product is available in every possible outlet. Where do you buy coke? Everywhere. Intensive distribution.
Distribution through multiple but not all outlets in a market. Take the CBD as an example. The CBD is a massive area. Selective is usually positioned to cover the geographic. So they position themselves in various locations in the geographic. People will come there and not be bothered about it. The power of a Westfield mall: Selectively, they need to be in westfield because that is where the action is. - covering the geographic comfortably for the market at hand.
- A single wholesaling middleman and/or retailer in a market. - Exclusive is not always about one outlet.
- Not only is the price exclusive, but the location.
- The amount of time and effort you expend in this is irrelevant.
Working with channel members:
It’s about a relationship. The better the relationship, the better the end product. What are some considerations when looking for the right type of middlemen: -you have a agreement in place.
-PLA – performance level agreement.
oWhere you both agree when and how the distribution is going to happen. oTime limits, protection, pricing, safety.
-SLA – Service level agreement.
-Support and motivate channel partners.
-It’s all part about securing the relationship and letting them know they’re important to you and vice versa. -Performance evaluation.
-Deal with channel conflict.
oThere can often be some conflict between a distributer and a wholesaler. oOne thing that can arise: I could be distributing those shirts -Dealer selection
-Tied contracts: tied in with exclusive dealing not allowing you to deal with anyone else. -Exclusive territories
What is the key function of distribution?
-The means by which products and services are delivered to consumers.
-The manufacturer and the consumer are not distributers
-The people between the manufacturer and the consumer are the distributers. -Direct distribution: Where the manufacturer deals directly with the consumer in all aspects of the deliverer.
Services (chapter 9)
-Know the characteristics of services and be able to talk about them. -Intangibility is that the customer cannot experience the product prior to the service. -Eventually you end up with something that is not tangible. -You can’t walk out of a beautician and say “there’s my facial.” -Inseparability: always think of service providers.
oI can’t have a doc appointment without the doctor.
oThe fact that you cant provide the service without a provider. oThere is no physical evidence.
oThe challenge is that you can’t experience the product.
oRestaurant: you can’t try the food without paying for it. You can’t experience it before you buy it. -Variability: Consistency. It’s got to be the same every time. -Perishability & Fluctuating demand: Unlike products, you can store them. If you’re not selling something you can store them until another day. With services, if you lose the booking, it’s lost forever. You can’t store services. oPerishability can be very costly.
oPublic transport peak hour.
oFull of people!! They’re busier.
oBusier requires more staff, where in in the middle of the day there isn’t anyone.
Understand these characteristics and be able to give examples and talk about them.
Developing a marketing mix for services: