In such a cases the agents and distribution firms help to reach the product to the consumer. Decisions concerning marketing channel structure are often made at a corporate level to encompass the whole company, particularly where the company is creating its own sales network, including sales companies. Marketing channels of a business unit must be adjusted to the marketing channel structure of the whole company instead of making independent channel decisions.
As new products are introduced, existing channels have to be reassessed since they may not be the right channels for the new product. In some cases, a company will decide not to launch a new product because it does not fit in with existing distribution channels and existing strategy. A graveyard keeper health solution few years ago Ciba, the Swiss chemicals company, was looking for new growth opportunities in the animal health market. Sales of its animal health and hygiene products for farm animals were beginning to plateau and the company considered diversifying into products for domesticated pets.
This means considering the trade-offs between the costs involved and the service level offered. It is possible, after all, to provide a level of service above that required or appreciated by the customer. Market intermediaries are either individuals or business houses who come to the aid of the company in promoting, selling and distributing the goods to the ultimate consumers. They are Middlemen , distributing agencies, market service agencies and financial institutions. Most of the companies find, it is too difficult to reach the consumers.
Intermediaries are specialists in the exchange process, provide access to and control over important resources for the proper functioning of the marketing channel. Division of labor.Still need services that intermediaries (wholesalers, retailers etc.) provide; if they were eliminated then someone else would have to assume the tasks . Functions can be shifted and shared among channel members, butcannot be eliminated, unless the buyer assumes them. In large forest industry companies, the logistics department takes care of all transportation issues in the company and marketing people have very little involvement. In this case marketing people feel that transportation issues are not under their control and that is why respondents did not see information about transportation systems as important in marketing planning.
Capital Requirements – high capital requirements make entry into a market more difficult. These capital requirements might be for items beyond plant and equipment, such as customer credit and inventories. For instance, a new paper mill costs in excess of $1 billion; this level of investment means market entry is almost impossible for most companies. Historically in Scandinavia, it was so easy to enter the sawmilling industry that when markets were attractive, new sawmills were created. This relative ease of entry resulted in a highly competitive marketplace for sawmillers. Marketing strategies can be resource, competitor, or customer oriented.
Limited-service wholesalers, who offer fewer services to their customers and suppliers, emerged in order to reduce the costs of service. General-line wholesalers carry a wide variety of merchandise, such as groceries; specialty wholesalers, on the other hand, deal with a narrow line of goods, such as coffee and tea or seafood. The company can measure its success by how many consumers make the call, return the card, use the coupon, or click on the link. A direct marketing pitch that is delivered to the widest possible audience is probably the least effective. That is, the company may gain a few customers while merely annoying all of the other recipients.
A _____ is an intermediary who brings a buyer and a seller together. They take advantage of the opportunities provided by the environment. Fargo Inc. is a carbonated beverage manufacturer that has many manufacturing plants around the world. It is planning to shift from using thermal power to wind power for its manufacturing plants in the Netherlands to decrease dependency on nonrenewable sources of energy. This scenario depicts Fargo’s concern for its ________ environment.
E) The nation’s ethnic populations are set to decrease in coming decades. Which of the following is a demographic trend observed in the United States? Convenience products have a high replacement rate and require no servicing.
