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Ch. 10 Notes

by: Morgan Notetaker
Morgan Notetaker
GPA 3.5

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CBM I: Demand Management
Mark A Moon (P)
Class Notes
25 ?




Popular in CBM I: Demand Management

Popular in Business Administration

This 21 page Class Notes was uploaded by Morgan Notetaker on Tuesday November 17, 2015. The Class Notes belongs to BUAD 332 001 at University of Tennessee - Knoxville taught by Mark A Moon (P) in Summer 2015. Since its upload, it has received 36 views. For similar materials see CBM I: Demand Management in Business Administration at University of Tennessee - Knoxville.


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Date Created: 11/17/15
1 2 Chapter 1 Example: Orbit Irrigation Systems Now how in the world can a little family business grow so well? Channels Page 3 Chapter 1 • Number of manufacturers x number of customers • If you put a store between them, things become more efficient • Manufacturers are learning how to sell directly to customers- how? Transaction costs are getting close to 0 (technology, internet); closer transaction costs get to 0, you lose efficiency when using a intermediary Page 4 5 If I’m Samsung what do I want Wal-Mart to do? Product Availability: “Desired Level of Coverage” • Example: Ralph Lauren, Rolex Watches, Doritos - Question: is it intensive (Doritos), selective (Ralph Lauren), or exclusive (Rolex)? • How do we want our products distributed? Everywhere? Or just some places? • Clicker: Mondalez International is a company that markets snack foods Oreos and trsicuts. Which distribution? Intensive 6 Budweiser (not allowed by law in TN to sell directly to retailers) – Eagle Distributing Company, Inc. – Kroger What do you add every time you add a box– cost; every box is a business; potential complexity; inventory 7 8 Manufacturers are looking for new ideas for ways to sell their products 9 Estee Lauder: can go shop on their website and buy products and opt in for “replenish my product” Dillard's sees this as a threat- takes people away from coming into the store and getting their make up and also getting something else 10 causes a huge concern for brick & mortar companies 11 Chapter 1 Supermarket banking Kroger renting a space in their store to a bank or a jewelry store Page 12 Chapter 1 Page 13 Numerous different channels are set up to serve different segments and help different segments of customers Clicker: when you see a subway restaurant located in a pilot traveling center, this is an example of: a)  Vertical marketing b)  hybrid c)  horizontal d)  Strategic 14 Now: question is how to get them to do what I want? 15 Chapter 1 One way is to treat the system as 1: gives more control Page 16 Chapter 1 Manufacturer actually owns the retailer Example: Apple Retail Store; All part of the same company Page 17 Chapter 1 Most common example: franchise - McDonald’s- owned by a business person that has signed a very complex contract with McDonald’s Franchising: Business accounted for 1.3 billion Top franchises 2014: McDonalds, 7-Eleven, KFC Page 18 Mostly through incentives 19 Spif: sales person incentive funds Goodyear is paying that sales person a spif, or next week Michelin has a spif on them and they will take you over to the Michelin brand tires 20 Chapter 1 You want everyone pulling on the rope the same way, but when they don’t- conflict Page 21


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