what marketing decisions do this marketing intermediaries take ?

What Marketing Decisions do these Marketing intermediaries make?

Kotler (Chapter-15)

Contents

• Marketing Decisions by Retailers and wholesalers

• Marketing Decision by Logistical organizations

Marketing Decisions by marketing intermediaries

• Retailers and Wholesalers

1)Target MarketThey must define and profile the target markets.No wholesalers or retailers canserve everyone.


They must segment the market and then define Their target markets,differentiate and positionthemselves effectively.

Example of Target Market

• Fashion & You is an online fashion retail portal, targetedat niche market segment thatwants to purchase authenticdesigner merchandise.


2) ChannelsThey must decide which channels to

employ to reach their customers. Increasingly

it Ithrough multiple channels.


JCPenney has ensured that its internet, store,and catalog businesses, are fully interwined.


Fabindia reaches individual and institutionalbuyers with its unique ethnic offerings

throughmultiple stores.


3) Product AssortmentThe product assortment must the

targetmarkets shopping expectations in breadth and

depth.


4) ProcurementProcurement is the acquisition of

goods,services, or works from an outside

externalsource.


Goods, services should be bestProcured at the best possible Cost to meet the needs of the purchaser in terms of quality,quantity, time and location.


5) Pricesprices must be in relationship tothe target market, product-and-service assortment mix and competition.


Westside is a blend of technology, pricing along

with affordability.


6)Store AtmosphereEvery store has a look, and a physical

layout thatmakes it hard or easy to move around.

8)Store Activities and AtmosphereAlong with real life customerservices; No/ limited lag deliverytime, stores also provide shopping experience as a strong diffrentiator.


9)CommunicationsRetailers use wide range of

communication tools to generate traffic and purchases.


10) LocationIn view of the relationshipbetween high traffic and high rents.


Market Logistics Decision1) Order ProcessingCompanies try to shorten the order-to-

paymencycle-that is, the elapsed time

between theorder’s receipt, delivery and payment.


2)WarehousingEvery company must storefinished goods until they are sold, because production andconsumption cycles rarely match.


To reduce costs, the company might centralize

its inventory in one place and use fasttransportation to fill orders.


3)Inventory Inventory or stock refers to thegoods and materials that a business holds for the ultimate purpose of resale (or repair).


Inventory Management involves:1) Deciding at what stock level to place

a new order.2) Deciding how much to order.


4)TransportationTransportation choices affect product

pricing,on-time delivery performance, and theconditions of the goods when they arrive, all

ofwhich affect customer satisfaction.

Summary

Like all marketers, retailers must prepare marketing plan that include decisions on target markets, channels, product assortment and procurement, prices, services, store atmosphere, store activities and experiences.

The most successful wholesalers are those who adapt their services to meet supplier’s and target customers need.

Summary

Market Logistics must decide the best way to store and move goods and services to market destinations; to coordinate the activities of supplier’s, purchasing agents, manufactures, marketers, channel members and customers.

Disclaimer:

Prepared By: Sitanshu Gandhi, SIT Pune.

During an Internship by Prof. Mathur, IIM

Lucknow.www.IIMInternship.com

http://www.iiminternship.com/

what marketing decisions do this marketing intermediaries take ?

Marketing

marketing intermediaries

contents marketing decisions

wholesalers marketing

store atmosphere

product assortment

niche market segment

store activities

communications retailers