ADMS 2200 Lecture Notes - Lecture 10: Ikea, Cost Leadership

• School: York University
• Department: Administrative Studies
• Course: ADMS 2200
• Professor: N A

Document Summary

Distribution channel - system of marketing institutions that enhances the physical flow of goods and services, along with ownership title, from producer to consumer or business user. Direct sale high cost, availability problem at locations, more transactions. A: brand image, consider itself as a luxury in the industry, provide latest product and service, control its own prices in different distributions, rare case, intensive strategy but without competition. Customers are indifferent to brands but shop different stores to secure better prices. Goods people buy frequently and with minimum efforts. Goods produced for sale in one market and then diverted to another market. Activities involved in selling merchandise to ultimate consumers. A concept that states that new types of retailers usually begin as low-margin, low- price, low-status operations but later evolve into higher-priced, higher service operations, eventually becoming like the conventional retailers they replaced. The target market dictates, among other things, the product mix, pricing strategy and location strategy.