Marketing 3000 Final
The computer-to-computer exchange of business documents from a retailer to a vendor and back.
EDI enables channel members to communicate more quickly and with fewer errors than in the past. This enables merchandise to move from vendors to retailers more quickly.
An approach for improving supply chain efficiency in which the manufacturer is responsible for maintaining the retailer’s inventory levels in each of its stores.
Push strategies are efficient for merchandise that has steady, predictable demand, such as milk and eggs, basic men’s underwear, and bath towels.
These campaigns attempt to motivate the seller to highlight the product, rather than those of competitors, and thereby push the product to consumers.
In essence, customers pull the product into the marketing channel by demanding it. Marketers create customer pull-based demand by designing integrative marketing campaigns to create awareness and ultimately demand for the product.
less likelihood of being overstocked or out of stock because the store orders merchandise as needed on the basis of consumer demand.
result, a pull strategy increases inventory turnover and is more responsive to changes in customer demand.
More costly than push marketing
For some merchandise, retailers do not have the flexibility to adjust inventory levels on the basis of demand
ex: fashion and private-label apparel.
Most channel partners use a combination of these approaches
Distribution centers enable the retailer to carry less merchandise in the individual stores, which results in lower inventory investments system wide
Easier to avoid running out of stock or having too much stock in any particular store because merchandise is ordered from the distribution center as needed.
Retail store space is typically much more expensive than
space at a distribution center, and distribution centers are
better equipped than stores to prepare merchandise for sale.
Direct store delivery gets merchandise to the stores faster and thus is used for perishable goods (meat and produce), items that help create the retailer’s image of being the first to sell the latest product (e.g., video games), or fads.
Some manufacturers provide direct store delivery for retailers to ensure that their products are on the store’s shelves, properly displayed, and fresh.
Inventory management systems that deliver less merchandise on a more frequent basis than traditional inventory systems.
Services account for 76 percent of the U.S. gross
domestic product (GDP)
People place a high value on convenience and leisure.
ex: house cleaning service
As the world has become more complicated, people
are demanding more specialized services
Because the service is inseparable from its consumption, customers rarely have the opportunity to try the service before they purchase it.
ex: cant stockpile golds gym membership
Firms can close this gap by determining what customers really want by doing research using marketing metrics
firm’s perceptions of customers’ expectations and the service standards it sets.
By setting appropriate service standards, training employees to meet and exceed those
standards, and measuring service performance, firms can attempt to close this gap.
If firms are more realistic about the services they can provide and at the same time manage customer expectations effectively, they generally can close this gap.
Responsiveness: The willingness to help customers and provide prompt service.
Assurance: The knowledge of and courtesy by employees and their ability to convey trust and confidence.
Empathy: The caring, individualized attention provided
Tangibles: The appearance of physical facilities, equipment, personnel, and communication materials.
An ongoing marketing research system that collects customer inputs and integrates them into managerial decisions.
support to service providers by demonstrating a concern for
their well-being and standing behind their decisions.
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