Core Concepts of Marketing

(Marcin) #1
278 CHAPTER 10 CHANNELCONCEPTS:DISTRIBUTINGTHEPRODUCT

nowregardedastheiropportunitytoultimatelyweavethemselvesintotheveryfabricoftheirprin-
ciples'go-to-marketapproach.
Consumershavealotofshoppingalternativesandaretakingadvantageofthem,whichis driv-
ingmanufacturersandretailerstolookforconsumerinformationtogivethema competitiveedge.
Injusta fewyears,asbrokershaveacceleratedtheiruseofdata,thenumberofbrokershavingonline
accesstosyndicateddatahasexpandedtomorethan 200 , accordingtoanAndersenConsultingSurvey.
Traditionally,panelandretailcensusdatahavebeenusedbymanufacturerstounderstandthe
componentsofvolumeandtodeterminewhattheycandotogrowvolume,includingtheprimary
variablesofpenetrationandbuyingrates.Nowthesesameconsumerdynamicscanbeusedtounder-
standretail-shoppingbehavior.Insteadofsimplymeasuringhowmanyhousehoidsbuya particular
brand,thedatameasurehowmanyshopperswhobuythebrandshopatapalticularretailerorretail
channel.Dependingonwherethemanufacturerfitsonthescalewillaffecthowonethinksaboutmar-
ketingandpromotion.
"Inthefinalanalysis,understandinga retailer'spositioninthemarketisthekey,"saidA.C.
Nielsenconsumerinformation andnationalsalesVPTodHale.Theknowledgeaboutthecompeti-
tiveframe,includingindividualretailershopperdemographics,purchasebehaviorina category, and
measuresofloyaltybyaccount,areincreasinglyessentialtopromotionalplanningandevaluation.
Theabilitytocompareandcontrastbehaviorindifferentaccountsisessentialtouncoveringthe
opportunities.

Questions:
1.Doyouseesourcesofconflictinthisnewarrangement?
2.Howwillroledeterminationbedetermined?

References

1.WroeAlderson,"Factors GoverningtheDevelopmentofMarketing
Channels,"inR.M.Clewett(ed.l,MarketingChannelsforManufac-
turedProducts,Homewood,IL:RichardD.Irwin. 1954 ,pp.5-22.
2.JamesL.Heskett,Marketing,NewYork: MacmillanPublishingCo.,
Inc.,1976,pp.265-267.
3,RogerM.Pegram,"SelectingandEvaluatingDistributors,"NewYork:
TheConferenceBoard,BusinessPolicyStudyNo. 116 , 1965,p.24.


4.LouisW.Stem, andRonaldH.Gorman, "ConflictinDistribution
Channels:AnExploration,"inDistributionChannels:Behavioral
Dimensions,ed.LouisW. Stern,NewYork: Houghton-MifflinCo.,
1969,p.156,
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