In product characteristic, the price is key to help determine the product’s success. In the online stores, digitizable products, which are cds, and books, are most suited for this because they easily distributed at very low distribution cost. In industry characteristics, some industries need brokers, whether they would be transaction brokers, stockbrokers, insurance agents, or travel agents. They need these so they will be affected less than industries or business without brokers. In seller characteristics, with the reduced search costs courtesy of the Electronic Market, customers are allowed to search for sellers that are offering products or services at a low price.
could be eliminated and so as to reduce the demand fluctuations. Hence, the distributors could release more inventories space and cost and they will be more competitive to react to the variability like after season stock, new products etc. Improvement in customer fill rate for both Barilla and the distributors: the system puts emphasis on quick response. Since Barilla controls the inventory data and delivery pattern, the production and deliveries are then easier to be scheduled by the distributors to satisfy the consumers? needs.
Statistics gathered from POS terminals can be used to analyze the turnover and refund rates for the company’s products and that of competitors. Customer response to promotions can also be measured through stock reports maintained by retailers and distributors. Such information can help improve the quality of marketing intelligence gathered and enable deeper competitor/market share analysis. 3) Outsource to experts: Research experts can be hired to perform the function of gathering marketing intelligence. These individuals can act on behalf of the company in multiple ways – observe customers in the market place to assess pattern of purchasing behavior, evaluate retailers in action vis-à-vis promotion of own/competitors’ products, imperceptibly discuss the company’s/competitors’ products with customers, observe actions of sales force in the field, etc.
Costco looks to buy from local suppliers in order to cut down on distribution costs and appeal to the local tastes. This also benefits the local economy by supporting local businesses which in turn benefits Costco. Another reason why Costco globalizes is to stay ahead of its competitors, which prevents them from being a threat in the future. By expanding its market reach far and wide, Costco is safer from shifts in the market related to prices and products. It has many inflows of profit from all of its stores that it can rely on.
It is critical for the effectiveness of every market segment. With it, marketers can also priories their target audiences. If segmentation shows that some consumers would be more likely to buy a product than others, the attention and resources can be better allocated (Dibb, S. 2010). 7. CUSTOMERCLASSIFICATION In the retail sector, satisfying customers and having loyal customers have been so important for years.
Osterwalder and Pigneur (2002) draw on Porter’s value chain framework in order to define the value creation process in a business model. While businesses employ a different activity configuration, this normally includes a value creation process of intermediary activities or service providers. In order to reach critical mass Airbnb uses both online and offline activities (Guttentag 2013). The main activities of the company include platform development and maintenance as well as local community management of their home owners – through online and offline events to create a sense of community and involvement. The firm also has an extensive marketing and customer support team in many different countries.
From the consumers’ perception, online shopping provides an easy way to shop and it reduces the total time consumers’ spent on purchasing goods (Szymanski & Hise, 2000). As Ranjbarian, Fathi, & Rezaei (2012) said, convenience is the most important factor of consumers’ satisfaction. Consumers are accessing the information easily with less time spent, and geographical restraints. Information can be accessed in a few minutes or seconds. So, UNIMAS students like to online shopping because they realize the advantages of online shopping.
Quality: is a crucial aspect in the buying decision process. It is growing in importance due to consumers becoming more health focused. The variety of products within a store also impacts customer’s supermarket preference. Loyalty cards: The introduction of loyalty programs give purchasers the right to discounts on purchases or to an allocation of points that they can use for future purchases, essentially saving them money. Online delivery service: Tesco,
Some marketers offer value pricing, which stresses high quality at the lowest possible price, while other marketers are concerned with relationship marketing, designed to develop a close affiliation with the consumer. Some consumers prefer to shop at stores that offer large selections of merchandise and low prices, while others prefer stores where they can get in and out quickly, and they are willing to pay a premium to save time. Manufactures sell through traditional distribution channels, through custom – designed channels, and direct to the consumer. Where United States producers formerly focuses almost exclusively, on the domestic market, the larger global market now beckons, and marketers are designing marketing strategies that they hope will be as effective in Bombay as they are in
The advantages of VMI The advantages of VMI vary widely from business to business. In general, businesses can enjoy the following benefits by switching to VMI: -A more efficient inventory management system: Few businesses are really good at inventory management. Outsourcing one part of inventory management to individual vendors can often be an effective way to avoid inventory problems. -More flexible to customer demands: If your customers seem to have weird ordering habits with little logic behind them, then VMI can help you handle “lumpy” demand cycles. -Reduce lost sales due to stockouts: Anytime a business is out of stock of a certain item, they may be losing money on missed sales of that item.