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Chapter 2 Book Notes

by: David Kavalerchik

Chapter 2 Book Notes 463

David Kavalerchik
GPA 3.2

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About this Document

These notes focus on the first stage of the Market Strategy Framework -> Analyzing and Decision Stage.
Marketing Channels and E-Commerce
Ann Trampas
Class Notes
uic marketing mktg463 mktg 463 notes studyblue study blue quizlet Market Strategy Framework
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This 2 page Class Notes was uploaded by David Kavalerchik on Friday January 29, 2016. The Class Notes belongs to 463 at University of Illinois at Chicago taught by Ann Trampas in Spring 2016. Since its upload, it has received 22 views. For similar materials see Marketing Channels and E-Commerce in Marketing at University of Illinois at Chicago.


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Date Created: 01/29/16
___________________________________________________________________________ End­User Analysis: Segmenting and Targeting   Grouping end­users by their service outputs rather than their preference for physical product  attributes helps define potential target markets segments then design specific marketing  channel solutions.   End users prefer a marketing channel that provides more service outputs. 1.     Bulk Breaking 2.     Spatial Convenience 3.     Waiting or delivery time 4.     Product variety 5.     Customer service 6.     Info sharing   Bulk Breaking: end user’s ability to buy product in small units even when the product was  produced in large, batch production lot sizes. More bulk breaking = smaller lot sizes end users can buy = channel’s service output is higher =  end user willing to pay a higher price that covers the costs of the channel of providing small lot  sizes.   Spatial Convenience: provided by market decentralization. Increases consumer’s satisfaction  by reducing transportation requirements and search costs. Product is as close to the end user  as possible.    Waiting Time: Time b/w ordering and receiving product.   Product Variety & Assortment: Assortment refers to the depth of a specific product category.   Customer Service: self explanatory   Information Sharing: education provided to end users about product attributes or usage  capabilities. Classified as solutions retailing. Price is not a service output. Price is what a customer pays to consume the bundle of the  “product + service outputs.” ____________________________________________________________________________ Segmenting End Users by Service Outputs Segment the market into groups of end users into how they want to buy the product not by the  product they want to buy. These are service output needs.  3 Steps to segmenting end users by service outputs; 1. Generate a comprehensive list of all potential service outputs desired by each  end user for the products being offered. You can gather this list from focus groups or  interviews etc. 2. Using that list, start to segment the market. Can do this by groups of buyers  who are (1) maximally similar within the group; (2) are maximally different b/w groups;  and (3) differ on dimensions that matter for building a distribution system.  3. After the market has been segmented into similar groups of end users the  channel manager should name each segment to capture its identifying characteristics.  ____________________________________________________________________________ Targeting End User Segments Targeting a channel segment means choosing to focus on that segment, with the goal of  achieving significant sales and profits from selling to it. 


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