Deck 12: Pricing Products and Services

Question 1

Does your marketing plan involve selecting channels and intermediaries If the answer is "no," read no further and do not include this element in your plan. If the answer is "yes":
Determine which channel and intermediaries will be the most profitable.

Answer 1

Marketers must look at the earned margins for each channel member and for whole channel as well. The channels which can provide timely distribution of the product at lesser damage rate would be the most profitable. Generally, larger and complex product manufacturers prefer wholesalers as their distribution channel. The reason behind this is that wholesalers have requisite and expert manpower to handle these kinds of products.
Smaller and perishable products are generally distributed through retailers because the selling time for these products is limited. Companies can save lots of money by ensuring that their products do not get damaged in the distribution process. This adds to their profit margins. In short, the profitability of a channel largely depends on the product type for which it is being used.

Question 2

Why will logistics and supply chain management play an important role in the future success of Amazon.com

Answer 2

There are many internal tasks within an e-commerce company like Amazon, which begin when a customer places an order.  Placing an order begins a series of transactions throughout the supply chain.  An order must be quickly and accurately delivered as a result of the interaction among various members of Amazon's supply chain.  Next, the software must process other transactions, which include tracking the status of orders and recording performance measures linked to the supply chain, such as lead-time, quality, and inventory turn around.  Finally, the order-fulfillment system must physically get the item ordered from inventory, get it packed and addressed, see that it is shipped, and bill it correctly to the customer.  Many interacting systems are needed to provide the ultimate service the customer demands.  Without these systems, companies like Amazon would indeed experience declining customer service, lost revenue, and missed opportunities.

Question 3

How does the channel captain idea differ among corporate, administered, and contractual vertical marketing systems with particular reference to the use of the different forms of influence available to firms

Answer 3

A channel captain is referred to that individual or an organization which is responsible for managing distribution channels and channel partners. Channel captain usually have a final authority on the products which are to be distributed by a channel and their manner of distribution. Channel captain also helps in resolving channel conflicts and other similar issues.
The channel captain can influence the choice of distribution channels for a firm. For example, Nike can choose whichever distribution channel it wants for distributing its products and in any manner.

Question 4

Does your marketing plan involve selecting channels and intermediaries If the answer is "no," read no further and do not include this element in your plan. If the answer is "yes":
Select your channel(s) and intermediary(ies).

Question 5

List the customer service factors that would be vital to buyers in the following types of companies: ( a ) manufacturing, ( b ) retailing, ( c ) hospitals, and ( d ) construction.

Question 6

Does your marketing plan involve selecting channels and intermediaries If the answer is "no," read no further and do not include this element in your plan. If the answer is "yes":
If inventory is involved, ( a ) identify the three or four major kinds of inventory needed for your organization (retail stock, finished products, raw materials, supplies, and so on), and ( b ) suggest ways to reduce their costs.

Question 7

Does your marketing plan involve selecting channels and intermediaries If the answer is "no," read no further and do not include this element in your plan. If the answer is "yes":
( a ) Rank the four customer service factors (time, dependability, communication, and convenience) from most important to least important from your customers' point of view, and ( b ) identify actions for the one or two factors that are the most important in regard to your product or service.

Question 8

A distributor for Celanese Chemical Company stores large quantities of chemicals, blends these chemicals to satisfy requests of customers, and delivers the blends to a customer's warehouse within 24 hours of receiving an order. What utilities does this distributor provide

Question 9

Does your marketing plan involve selecting channels and intermediaries If the answer is "no," read no further and do not include this element in your plan. If the answer is "yes":
Identify which channel and intermediaries will provide the best coverage of the target market for your product or service.

Question 10

How do Amazon.com's logistics and supply chain management activities help the company create value for its customers

Question 11

Suppose the president of a carpet manufacturing firm has asked you to look into the possibility of bypassing the firm's wholesalers (who sell to carpet, department, and furniture stores) and selling directly to these stores. What caution would you voice on this matter, and what type of information would you gather before making this decision

Question 12

Does your marketing plan involve selecting channels and intermediaries If the answer is "no," read no further and do not include this element in your plan. If the answer is "yes":
Specify which channel and intermediaries will best satisfy the important buying requirements of the target market.

Question 13

What systems did Amazon develop to improve the flow of products from suppliers to Amazon distribution centers What systems improved the flow of orders from distribution centers to customers

Question 14

What type of channel conflict is likely to be caused by dual distribution, and what type of conflict can be reduced by direct distribution Why