For enumeration purposes c.

Two-level
MM 107 Retail Management and E-Tailing d. Three-level
e. Jobber
2. Business
Types of Firms in Total Distribution Systems 3. Multi-channel Distribution System or Hybrid
marketing Channels
1. Upstream Firms
2. Downstream Firms Benefits of Demand Chain Planning
Integrated Important Activities:
Operations Management 1. Estimation whether more money is made
Logistics Management upstream or downstream
2. More awareness of disturbances anywhere
Supply Management
in the supply chain
Supply Chain Management
3. Internet allows for better communications,
transactions, payments, cost efficiencies and
Classifications of Intermediaries
accuracy
1. Merchants Marketing Channel Functions and Flows
2. Agents
3. Facilitators 1. Some of these functions constitute forward
3.1 Carrying and Forwarding Agents flow
3.2 Consignment Selling Agents 2. SomeBackward flow
3. Reverse flow is also important
Discrepancies that Marketing Channels address a. To reuse products or containers
b. To refurbish products for resale
1. Spatial c. To recycle products
2. Temporal d. To dispose of products and
3. Need for breaking the bulk packaging
4. Need for assortment
Examples of flows
Importance of Marketing Channels
1. Physical
2. Title
1. Creation of Utility
3. Payment
Time
4. Information
Place 5. Promotion
Possession
Form Channel Design Decisions (Stages)
2. Not only serve markets but make them
3. Facilitating exchange efficiencies 1. Analyzing Customers Needs and Wants
4. Serve as feedback database for producers (Desired Service Output Levels)
5. Act as promotional agents for producers 2. Establishing Objectives and Constraints
6. Performance of other roles: 3. Identifying Major Channel Alternatives
Reach agreements on price and 4. Evaluating Major Channel Alternatives
terms
Critical Service Output Levels
Acquire funds to finance inventories
Assume risks 1. Lot size
Provide for storage 2. Waiting and Delivery Time
Provide for buyers payment of their 3. Spatial Convenience
bills 4. Product Variety
Oversee actual transfer of 5. Service Backup
ownership
Channel Objectives should be:
General Classification of Marketing Channels
With plans stated in terms of targeted
1. Consumer service output levels
a. Zero-level (or direct marketing providing desired levels of service outputs
channel) with minimized channel costs by arranged
b. One-level functional tasks
Done with effective planning
MIDTERM REVIEWER
Designed according to product
August 5, 2015 characteristics
o Perishable products
o Bulky products
 o Non-standard products 5. Level of Cooperation in promotional
o Products requiring installation or and training program
maintenance services
o High-unit value products Vertical Marketing System
Types:
Channel alternatives differ in:
1. Corporate
1. The types of intermediaries 2. Administered
a. Conventional or dominant channels 3. Contractual (Value-adding
b. Unconventional channels partnerships or VAP)
2. Number of intermediaries a. Wholesaler-sponsored
a. Exclusive distribution voluntary chains
b. Selective distribution b. Retailer cooperatives
c. Intensive distribution c. Franchising
3. Terms and Responsibilities of Channel i. Manufacturer-
Members sponsored
a. Price policy retailer franchise
b. Conditions of sale ii. wholesaler
c. Distributors territorial rights franchise
d. Mutual services and responsibilities iii. Service-firm-
sponsored
Evaluating Major Channel Alternatives retailer franchise
1. Economic Criteria General Functions of Wholesalers
2. Control and Adaptive Criteria
1. Selling and Promoting
2. Buying and Assortment Building
3. Bulk Breaking
II. Channel Management Decisions
4. Grading and Packing of Goods like
Factors Affecting Channel Selection Decisions commodities
5. Warehousing
1. Customer Characteristics 6. Transportation
2. Product Attributes 7. Financing
3. Type of Organization 8. Risk bearing
4. Competition 9. Market Information
5. Environmental Forces 10. Management Services and counselling
6. Characteristics of Intermediaries Types of Agents
1. Manufacturer
Selecting Channel Members 2. Selling
Commission or Factor Merchants
Characteristics of Strong Channel Members
Brokers
1. Number of years in the business
Major Wholesaling Decisions
2. Other product lines carried
3. Growth and profit record Which markets to operate in?
4. Financial strength Manpower
5. Cooperativeness and service reputation
Which product to sell or carry?
Promotional support
Credit and collection
Kinds of Channel Power Image and customer perception
Warehouse location and design
1. Coercive Inventory control
2. Reward
3. Legitimate Retailing
4. Expert
5. Referent How do consumers choose which retailer to buy
from?
Evaluating Channel Members
Price
1. Sales Quota Attainment Location
2. Average Inventory Levels Product selection
3. Customer Delivery Time Special services
4. Treatment of Damaged and Lost
Helpful salespeople
Goods
 Fairness in dealings 5. Quality of employees
6. Service quality and reliability
6 steps in strategic planning (retailing)
Characteristics of Service
1. Define the type of business
2. Set long-run and short-run objectives 1. Intangibility
3. Determine the customer market to target 2. Inseparability
4. Devise an overall, long-run plan 3. Perishability
5. Implement an integrated strategy 4. Variability
6. Regularly evaluate performance
Types of Retailers
Retailing Concept
1. Store
1. Customer orientation 2. Non-store
2. Coordinated effort a. Direct selling
3. Value driven b. Direct marketing
4. Goal orientation c. Automatic vending
d. Buying service
Functions of Retailing 3. Retail Organization
1. Performing mktg functions Major Types of Store Retailers
2. Helping create utilities
3. Retailers add value to products 1. Specialty store
2. Department store
Total Retail Experience 3. Supermarket
4. Convenience store
Number of salespeople 5. Drug store
Displays, store layout 6. Discount store
Prices 7. Extreme value or hard-discount store
Brands carried, assortment 8. Off-price retailer
Inventory on-hand 9. Superstore
Street-parking adequacy 10. Catalog showroom
Promotional activities
Sales taxes

Retail Value Chain

Store location and parking Major types of corporate retail organizations

Products/brands carried 1. Corporate chain store
Product quality 2. Voluntary chain
In-stock position 3. Retailer coop
Shipping prices 4. Consumer coop
Retailers image 5. Franchise org
6. Merchandising conglomerate
Classifications of Retail Firm
Retail Customer Behavior
Form of ownership
Operational structure Three Current Trends
Service and price orientation
Merchandise offering 1. Population (variables below)
Where the sale takes place a. Population growth trends
b. Age distributions
Three Aspects of a Value-Oriented Retail Strategy c. Ethnic makeup
d. Geographic trends
1. Expected Retail Strategy e. Urban centers
2. Augmented f. mobility
3. Potential 2. Social
a. Education
6 Overall Consumer Perceptions of Service b. State of marriage
Retailing c. Divorce
d. Makeup of households
1. Promptness of service
e. Changing nature of work
2. Convenience of service
3. Economic
3. Information about the service
a. Income growth
4. Clarity of service benefits
 b. Personal savings
c. Women in the labor force
d. Widespread use of credit

Consumer Behavior Model

1. Stimulus
2. Problem recognition
3. Active information gathering (search)
4. Evaluation of alternatives
5. Purchase
6. Post-purchase evaluation