Distribution Strategy: Channel Efficiency and Decisions
Distribution Strategy
1 Channel Efficiency
When making channel decisions, companies must consider efficiency factors, including:
- Perceived value of product sold: This affects the distribution channel, as selling a bottle of water differs from selling a pair of shoes.
- Price and margin obtained: High profits may allow for direct sales, while low profits may favor using an intermediate.
- Distribution structure of the country or region: Different models exist for reaching final buyers.
- Integration levels:
Income from the forest
1)Explain the reasons for the existence of secular economic stagnation in pre‐industrial economies (also known as the Malthusian trap) and why it disappeared in modern economies. “DOES THE MALTHUSIAN TRAP STILL EXIST?”
Malthus’s model starts from three assumptions. The first is that each society has a birth rate determined by the customs that regulate fertility, but which increases along with the standard of living. The mortality rate in each society decreases when the standard of living
Read MoreUnderstanding Economics: Scarcity, Choices, and Incentives
Scarcity
– Is the condition that arises because wants exceed the ability of resources to satisfy them.Choices we make…
– Depend on the incentives we face.Economics
– Social science that studies the choices that individuals make as they cope with scarcity, the incentives that influence those choices, and the arrangements that coordinate them.Economics way of thinking
- Choice is a tradeoff
- Cost is what you must give up to get something
- Benefit is what you gain from something
- People make rational choices
International Economics and Trade Theories
International Economics and Globalization
International economics developed mainly due to globalization. Drivers of Globalization: ITC developments, transportation technologies, Multinational companies, and liberalization of trade and finance. Presence of companies in less developed countries help the development of international trade theories.
International Economics
Studies the production, distribution, and consumption of goods/services on a global basis between countries. It focuses on financial
Read MoreConsumer Behavior: Factors, Theories, and Decision-Making Process
Factors Influencing Consumer Behavior
Situational Factors
- Buying task
- Market offerings
Personal Factors
- Demographics
- Life stage
- Lifestyle
- Personality
Psychological Factors
- Motivation
- Learning
- Attitude and beliefs
Social Factors
- Culture / subculture
- Social class
- Family
- Reference groups
ALSO:
- Disposable income (purchasing power) vs purchase spend
- Economic environment: confidence
- Group / social influences
- Marketing (global, overall) influences, especially “uncontrolled” social marketing information
a. Pavlovian Model:
Read MoreUnderstanding Stocks and Shares: A Comprehensive Guide
Stocks and Shares: Basics
Nominal Share Value
The price written on the share and never changes, the price at which it was issued.
Market Price (Market Share Value)
Current trading price on the stock exchange, changes constantly and affected by supply and demand
Ordinary Shares
Give owner right to vote and receive dividends; are the most common type of share, shareholder who own shares and dividend distribution of earnings to shareholders.
Preference Shares
Higher claim on asset and earnings, preferred stock
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