MKBU 3225 Lecture Notes - Lecture 13: Customer Relationship Management
Document Summary
Calculation of price: cost plus oriented pricing. Mark up % above cost: demand oriented pricing. Based on marketing concept: competitive oriented pricing. Takes into account discounts: function/trade discount. Discount w/in channels of distribution (ex: discount if pick up yourself: quantity discount. Incentives for buyer from seller: seasonal discount. Place: aka channels of distribution aka marketing channels. Definition: group of interrelated intermediaries that direct product to ultimate consumer (end user) Buys, takes title, & sells to other intermediaries: retailer. Buys, takes title, & sells to consumer: agent. Represents buyer/seller on permanent basis: brokers. Melding going on between traditional & electronic. Vertical marketing channels is when intermediaries takes on additional. Function of retailer is expertise & retailer is less risky. Why producer to wholesaler: producer can reduce inventory & costs. Why wholesaler to retailer: retailer can buy limited quantity, wholesaler can"t reach certain geographic locations, & retailer has more expertise than wholesaler.