Core Concepts of Marketing by John Burnett - HTML preview

CHAPTER 10

CHANNEL CONCEPTS: DISTRIBUTING THE PRODUCT

now regarded as their opportunity to ultimately weave themselves into the very fabric of their principles' go-to-market approach.

Consumers have a lot of shopping alternatives and are taking advantage of them, which is driv-

ing manufacturers and retailers to look for consumer information to give them a competitive edge.

In just a few years, as brokers have accelerated their use of data, the number of brokers having online access to syndicated data has expanded to more than 200, according to an Andersen Consulting Survey.

Traditionally, panel and retail census data have been used by manufacturers to understand the

components of volume and to determine what they can do to grow volume, including the primary

variables of penetration and buying rates. Now these same consumer dynamics can be used to understand retail-shopping behavior. Instead of simply measuring how many househoids buy a particular brand, the data measure how many shoppers who buy the brand shop at a

retailer or retail

channel. Depending on where the manufacturer fits on the scale will affect how one thinks about marketing and promotion.

the final analysis, understanding a retailer's position in the market is the key," said A.C.

Nielsen consumer information and national sales VP Tod Hale. The knowledge about the competi-

tive frame, including individual retailer shopper demographics, purchase behavior in a category, and measures of loyalty by account, are increasingly essential to promotional planning and evaluation.

The ability to compare and contrast behavior in different accounts is essential to uncovering the opportunities.

Questions:

1. Do you see sources of conflict in this new arrangement?

2. How will role determination be determined?

REFERENCES

1. Wroe Alderson, "Factors Governing the Development of Marketing

4. Louis W. Stem, and Ronald H. Gorman, "Conflict in Distribution

Channels," in R.M. Clewett (ed.l, Marketing Channels for Manufac-

Channels: An Exploration," in Distribution Channels: Behavioral

tured Products , Homewood, IL: Richard D. Irwin. 1954, pp. 5-22.

Dimensions, ed. Louis W. Stern, New York: Houghton-Mifflin Co.,

2. James L. Heskett, Marketing, New York : Macmillan Publishing Co.,

1969, p. 156,

Inc. , 1976, pp. 265-267.

3, Roger M. Pegram, "Selecting and Eval uating Distributors," New York:

The Conference Board, Business Policy Study No . 116, 1965, p. 24.

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