Marketing Channel Strategy


Point-of-Consumption Merchandising Formats



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Marketing Channel Strategy An Omni-Channel Approach

Point-of-Consumption Merchandising Formats.
This concept has 
grown, from the practice of strategically placing vending machines where 
demand is predictable and often discretionary and the cost of selling through 
a full-time salesperson would be too high, to never-before-imagined commer-
cial, industrial, and home markets for products and services. The increased use 
of technology and telecommunications has opened this channel to even more 
products and services.
a. 
Vending/Kiosks.
Kiosks have historically been very small retail locations 
that carry a very narrow product line. Through interactive video, online 
ordering technology, and artificial intelligence, this format has been sig-
nificantly enhanced and can operate unattended. It is also being used for 


The OmnI-ChAnnel eCOsysTem
31
point-of-use dispensing of maintenance supplies and tools. “Purchases” are 
recorded in a log by the computer to control inventory shrinkage and bal-
ance inventory levels.
Examples: Film processing, candy, tobacco, compact discs, and tapes.
b. 
Pay-Per-Serving Point of Dispensing.
Product is prepared or dispensed 
by vending machine at the time of purchase. Vending machines for soup and 
coffee, soft drinks, and candy or food are usual uses of this format, but it is 
expanding to include such foods as pizza and pasta.
Examples: Beverages, food.
c. 
Computer Access Information.
Many of the computer access informa-
tion formats have not necessarily altered the product function (products 
are not available online), but they have significantly altered the service and 
information function by uncoupling them from the product, such that the 
product can pass through cheaper channels.
Examples: Online information services, cable movies, news wire services, 
shopping services for groceries.
4. 

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