Saturday, October 19, 2013

Chapter 14 - Marketing Channels and Retailing

               A Marketing Channel is a set of interdependent organizations that eases the transfer of ownership as products move from producer to business user or consumer. This basically means that it:
  • Links producers to buyers.
  • Performs sales, advertising and promotion.
  • Influences the firm's pricing strategy.
  • Affecting product strategy through branding, policies, willingness to stock.
  • Customizes profits, install, maintain, offer credit, etc.
TRESemmé has its own set of a marketing channel since they perform sales on their hair products so consumers will most likely buy it more, they make sure that their prices are reasonable so consumers won't have to question themselves as to if buying the product is worth their money, and they have their hair products stocked all the time and make sure they never run out.



                 Having Channel Members helps the company determine the goods and services that goes to the customer. In order to do this, the company needs main members which are retailerswholesalers, and industrial distributorsTRESemmé has these main members to help distribute their hair products in the hands of their consumers, attracting more of them to buy TRESemmé's products. For example, if there is no intermediary, companies will have more transactions and if a company has intermediaries, then there will be less transactions. The retailers for TRESemmé sell mainly to the consumers, the merchant wholesalers facilitate the movement of TRESemmé's products and services from the manufacturer to producers, resellers, governments, institutions, and retailers. The agents and brokers of  TRESemmé facilitate the sale of a product from producer to end user by representing retailers, wholesales, or manufacturers.
                   The Channel Structures of  TRESemmé for consumer products is different from the industrial products. They each have their own way of determining who the products go to. In the end, TRESemmé's products from consumers will always go to the consumers and in the end, industrial products will either go to the industrial users or government buyers.



                Making Channel Strategy Decisions for TRESemmé is pretty easy. TRESemmé's managers must answer these following questions:

  • Who are the potential customers?
  • What do they buy?
  • Where do they buy?
  • When do they buy?
  • How do they buy?
These answers will help them sell their hair products in a much simpler way. It is also important for TRESemmé to have a reasonable size for their market. The product's life cycle is an important factor too, TRESemmé can do this by upgrading the hair products that they have and putting the word "New" on their shampoo bottles, conditioner bottles, hairspray, gel, etc. Otherwise, consumers will look for other alternatives.
                TRESemmé's Global Marketing Channels allow the company to sell their products in different countries allowing more sales to occur. It is a good idea for TRESemmé to manufacture abroad because this way they will be able to make more money. Since people are going to be using TRESemmé's products all over the world, then their products will become more popular and be used more.


                 Retailing is basically all the activities directly related to the sale of goods and services to the ultimate consumer for personal, non-business use. When a person goes to the store to buy a hair styling product and buy the brand TRESemmé, they are then involved in retailing. In United States society, TRESemmé is the 2nd top brand for consumers so it fulfills their needs and styles.



                TRESemmé's Classification of Retail Operations would be a drugstore or a supermarket. Stores such a Rite Aid, Duane Reade, Costco, Pathmark, etc. all sell TRESemmé products where consumers can purchase them at anytime. They have a section of beauty products for hair and there will be a whole section of TRESemmé's shampoos, conditioners, hairsprays, gels, etc. This makes it easier for consumers to buy TRESemmé's products since these drugstores and supermarkets are not hard to find. There are also nonstore retailing options that consumers have when buying a TRESemmé product. Instead of going to the store, they can just order TRESemmé's products online with no hassle. This technique also makes it easy for consumers to buy and it is a smart way of retailing. 


                 There is also a Retail Marketing Strategy which allows TRESemmé to select a target market and to develop the retailing mix to successfully meet the needs of the chosen target market. They must know what the consumer wants and expects of their product in order to sell it to them successfully. The price for their products should be affordable and reasonable to the consumer. Also, the atmosphere should have a good impression for the consumers to attract them more. Odor is also very important for consumers because the better the smell of the place, the more people there will be to buy the products since it is another sense of attraction like the atmosphere. TRESemmé's retailers must always adopt new strategies to serve their customers and attract new ones at the same time. This is how they stay ahead of the game in any competition.
             

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