MRKT 354 Lecture Notes - Lecture 10: Direct Marketing, Variable Cost, Breakcore

• School: McGill University
• Department: Marketing
• Course: MRKT 354
• Professor: Nick Pappatheodorakos

Document Summary

Supply chain management (chapter 9: channel strategy. Functions of a channel: sorting, breaking bulk, maintaining inventory, convenient locations, providing service. The importance of a good channel partner increase customer satisfaction increase market penetration reduce inventory level: create differentiation, shorten new product development cycle, source of competitive advantage, quantity, quality and productivity of sales force, distribution coverage. Channel value proposition (to end users and channel partners: brand leverage, sales growth, profitability return on investment. Channel structure direct channels: direct sales, digital marketing, direct marketing telemarketing reps/agents. Nmc = volume * [ end-user price * ( 1 - % channel cost) Cost of goods] marketing & sales exp. Well designed and implemented digital marketing channel can lower variable cost and sales expenses while reducing other operating expenses. (ex: hp) Indirect: lower margins, lower channel management and mse: service quality (retention, direct channels: control service quality. Allows to make service enhancements, streamline procedures, respond quickly to customer problems.