CM (Fach) / Topic 2 Service Output Demands (Lektion)

In dieser Lektion befinden sich 15 Karteikarten

Channel

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  • Name the 6 Channel duties (SOD's) Bulk breaking Spatial convenience Waiting time (quick delivery) Variety and assortment Customer service Information provision
  • What is Bulk breaking? Ability to buy desired number of units The more bulk breaking, the less need to carry inventory (from customer perspective) The more bulk breaking, the higher the price per unit ( usually )
  • What is Spatial convenience ? Greater spatial convenience increases customer satisfaction by reducing transportation cost and search cost Normally, the more spatial convenience, the higher the costs, hence the price Example : convenience stores, gas stations, vending machines, selling direct
  • What is Waiting time ( quick delivery )? Waiting time between ordering and receiving goods Normally, the longer the wait time, the lower the cost, and hence the price --> implication with respect to the level of inventory Intensity of demand differs for  : -Original equipment (low) - Postsale service and parts (high) There is often a correlation between bulk-breaking, spatial convenience and waiting time
  • What is Variety and assortment? Breadth of Variety = breadth of product lines/categories Depth of Assortment = number of brands and number of SKU's offered within a category Normally, the more variety and assortment, the higher the costs, hence the price
  • What is Customer Service? All aspects of easing buying process and product use Big area of growth and differentiation Normally, the higher customer service levels, the higher the costs and hence the price
  • What is Information provision ? Education of buyer about product, attributes, usage, services.. Fundamental service output Overlap with customer services
  • Why do multiple channel formats exist at the same time? Whenever customers buy, they have certain expectations with respect to these service outputs Service output demands differ by purchase occasion Service outputs provided differ across channels Everything else being equal, customers prefer to deal with channels that provide higher levels of service outputs As service outputs increase, costs will rise and these costs will be reflected in higher prices to the end users The greater the level of service output demanded ( by meaningful segments), the more likely intermediaries are included in the channel
  • Segmentation : Why to segment the market on basis of SOD's ? Success and persistence of multiple marketing channels show, that different groups of end-users value service outputs differently
  • Why segmentation ? Differenct customers have different needs and performances Increasing degree of market fragmentation It's hard for a product or brand to be everything to all customers Allows for adaption of marketing mix, thus making resource allocation more efficient Matching target segments with specific core competencies
  • Market Segmentation Process Need-based segmentation : Group customers into segments based on similiar needs/benefits sought by customers in solving a particular consumption problem. Segment identificiation (profiling) : For each need-based segment, determine which demographics, lifestyle factors, and use behaviours make the segment distinct and identifiable (actionable). Segment evaluation : Determine the overall attractiveness of each segment Segment selection (targeting) : Based on attractivness, profit potential, risk, available resources and other appropriate criteria, select target segments. Segment positioning : For each segment, create a "value proposition" and marketing mix strategy. Strategy implementation
  • Which factors are linked to consumer needs? Demographics : Age, gender Marital status Household size, family life cycle Income Education Occupation Geographic location Lifestyle/Psychographics : Attitudes Values Activities Interest Political Views Personality Risk Attitude Usage Behavior : Type of use Usage rate & frequency Time of use Brand loyalty Store loyalty Product knowledge Personal, social
  • Which factors are linked to business' needs? Firmographics : Industry Size of firm Geographic location Market position Years in business Firm Culture : Sophistication Product/supplier loyalty Decision maker Decision criteria & procedure Personality of people involved Risk attitude Usage behaviour : Application End use of product Usage rate & frequency Buying situation
  • Process of segmenting markets by service output demands Understand and list (comprehensively) all relevant service output demands by different end users                                                                                                     Understand the weight (thus importance) that is placed on individual service output demands (by end customers)  A priori ( --> simple approach ) On basis of service output demands (--> reflect reality) tools : self reported, conjoint analysis, constant sum scales      3. Based on similar weights ,construct clusters/segments --> cluster analysis
  • What is S-T-P ? Segmentation Targeting assess segment attractiveness Criteria - size, volume and profit potential - cost-to-serve - competitive intensity - alignment with other strengths target specific segment(s) Positioning customize/develop marketing channel solution