Further, one auto parts store owned by a woman ran an advertising campaign aimed at women, acknowledging that women were often being asked by their husbands and boyfriends to be "parts runners." The ad then went on to talk about the cleanliness of the store. Note that although a gap may exist in the sense that existing firms are not offering what consumers may ideally want, there is a limit to what buyers would be willing to pay for. For example, before starting their ice-cream business, ben and Jerry considered going into business delivering the. New York times to peoples doors on Sunday mornings along with fresh baked bagels. A problem here, however, could have been the cost of this service. Sometimes, a firm may be able to come in and fill a gap, but may need to compromise on exactly how far. There are usually some struggles between what would be nice to have and what customers are wiling to pay for. . For example, many computer buyers would like to have someone come and set up make the computer, the peripherals, and the Internet connection, but might balk at paying 150 for this service. . Many consumers would like to have their dry cleaning picked up and delivered, but when push comes to shove, they would not be willing to pay for the extra service.
G., a distributor that ends up holding inventory longer or taking on more returns may need additional compensation. "Gap" analysis involves analyzing current market offering to assess the extent to which they meet customer demands. Demand side gaps involve a market situation where consumers are not satisfied buying what is available—usually either because the level of service provided is not adequate or because the offering is too expensive. Supply side gaps, in contrast, involve firms that provide services that are needed, but ones that can be met elsewhere at lower prices. Customer satisfaction abounds, and many consumers would like to replace their current suppliers. This can happen either generally—there is a widespread dissatisfaction with banks among consumers, and many would switch if they found one that they thought to provide better service—or the gap can be with one segment that is not being well served. As an example of the latter, consider parents pdf who, if they had not had children, would have been perfectly satisfied with an ordinary Internet service provider but are now worried that their children can be exposed to inappropriate material online. Therefore, the pax network, which features family-oriented television programming, stepped in to offer a service that claims to block out most objectionable sites.
Note that we may also be tempted to add a direct channel—e. G., many clothing manufacturers have factory outlet stores. However, note that the full service retailers will likely object to being "undercut" in this manner and may decide to drop or give less emphasis to the brand. It may be possible to minimize this contract by precautions such as (1) having outlet stores located in vacation areas not within easy access of most people, (2) presenting the merchandise as being slightly irregular, and/or (3) emphasizing discontinued brands and merchandise not sold. The performance of channel members should be periodically monitored—a channel member may have looked attractive earlier but may not, in practice be able to live up to promises. (This can be either because of complacency or because the channel member simply did not realize the skills and resources needed to perform to standards). Thus, performance level (service outputs) and costs should be evaluated. Further, changes in technology or in the market place may make it worthwhile to shift certain functions to another channel member (e.g., a distributor has expanded its coverage into another region or may have gained or lost access to certain retail chains). Finally, the extent to which compensation is awarded in proportion to performance should be reassessed—e.
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On the other hand, it would not be cost effective for Procter gamble and presentation Wal-Mart to involve a third party to move their merchandise—wal-Mart has been able to develop, based on its information systems and huge demand volumes, a more efficient distribution system. Note the important caveat that cost alone is not the only consideration —premium furniture must arrive in the store on time in perfect condition, so paying more for a more dependable distributor would be indicated. Further, channels for perishable products are often inefficiently short, but the additional cost is needed in order to ensure that the merchandise moves quickly. Note also that image is important—Wal-Mart could very efficiently carry rolex watches, but this would destroy value from the brand. a special opportunity to gain distribution that a manufacturer would otherwise lack involves "piggy-backing." Here, federalist a manufacturer enlists another manufacturer that already has a channel to a desired customer base, to pick up products into an existing channel.
For example, a manufacturer of rhinoserous and hippopotamus shampoo might be able to reach zoos by approaching a manufacturer of crocodile teeth cleaning supplies that already reaches this target. In the case of reciprocal piggy-backing, the shampoo manufacturer might then, in turn, bring the teeth cleaning supplies through its existing channel to exotic animal veterinarians. Most manufacturers find it useful to go through at least one wholesaler in order to reach the retailer, and it is simply not efficient for Colgate to sell directly to pathetic little "mom and pop" neighborhood stores. However, large retail chains such as k-mart and Ralphs buy toothpaste and other Colgate products in such large volumes that it may be efficient to sell directly to those chains. Thus, we have a "parallel" distribution network whereby some retailers buy through a distributor and others do not.
For example, automobiles, small planes, and yachts are frequently sold by the manufacturer to a dealer who then sends directly to the customer. It does not make sense to deliver these bulky products to a wholesaler only to move them again. On the other hand, it would not make sense for a california customer to fly to detroit, buy a car there, and then drive it home. As the need for variety increases, a wholesaler may then be introduced. For example, an office supply store needs to sell more merchandise than any one manufacturer can produce. Therefore, a wholesaler will buy a very large quantity of binders, file folders, staplers, reams of paper, glue sticks, and similar products and sell this in smaller quantities—say 200 staplers at a time—to the office supply store, which, in turn, may go to another wholesaler.
Note that more than one wholesaler level may be involved—a local wholesaler serving the Inland Empire may buy from each of the two wholesalers listed above and then sell all, or most, of the products needed by local office supply stores. Finally, even in longer channels, agents or brokers may be involved. This, in particular, will happen when the owner of a small, entrepreneurial company has more experience with technology than with businesses negotiations. Here, the manufacturer can be freed, in return for paying the agent, from such tasks, allowing him or her to focus on what he or she does well. Criteria in selecting channel members. Typically, the most important consideration whether to include a potential channel member is the cost at which he or she can perform the required functions at the needed level of service. For example, it will be much less expensive for a specialty foods manufacturer to have a wholesaler get its products to the retailer.
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Nevertheless, there are situations when these conditions are not met—most typically in industrial settings. As an extreme case, most airlines are perfectly happy only being able to buy aircraft and accessories from boeing and would prefer not to go through a retailer—particularly since the twist planes are often highly customized. More in the "gray" area, it may or may not be appropriate to sell microcomputers directly to consumers rather than going through a distributor—the costs of providing those costs may be roughly comparable to the margin that a distributor would take. Channel structures can assume a variety of forms. In the extreme case of boeing aircraft or commercial satellites, the product is made by the manufacturer gpa and sent directly to the customers preferred delivery site. The manufacturer, may, however, involve a broker or agent who handles negotiations but does not take physical possession of the property. When deals take on a smaller magnitude, however, it may be appropriate to involve retailer-but no other intermediary.
In general, we want to find segments that contain people who are as similar as possible to each other while, simultaneously, being as different as possible from members of other segments. . Thus, for example, members of what we might term a essay price sensitive food segment are likely to seek out the lowest priced retailers even if they are not located conveniently, buy larger packages, switch brands depending on what is on sale, and cut coupons. . The fussy segment, in contrast, may shop either where the best quality is found or at the most convenient location, and may be brand loyal and not cut coupons. . Note that not all members of each segment will be completely alike, and there is some tension between precision of description and cutting the segments into too small pieces. . The idea, here, then, is for different channels to serve different consumers (e.g., price sensitive individuals are targeted by food 4 Less while more upscale stores target the price insensitives). Paths to the customer. For most products and situations, it is generally more efficient for a manufacturer to go through a distributor rather than selling directly to the customer. This is especially the case when consumers need to have v ariety and assortment (e.g., consumer would like to buy not just toothpaste but also other personal hygiene products, and even other grocery products at the same place when products are bought in small volumes.
viewing the respective web page in its regular display mode). . Therefore, for such sites, google does, in principle, have access to traffic information from all sources, including other search engines or links from other sites. . It is not clear whether google actually uses this information, however. As we have discussed earlier, firms have to make tradeoffs between different considerations such as cost of distribution, intensity. Exclusivity, and service provided. . Some of the services ultimately desired by consumers include bulk-breaking (as previously discussed spatial convenience (being able to buy milk in the supermarket rather than having to drive out to a farmer to get it timing of availability (having someone—the retailer and other channel members—plan. Segmentation involves identifying groups of consumers who respond relatively similarly to different treatments. .
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