Chapter 4: Consumer Markets and Consumer Buyer Behavior

I/ Model of Consumer Behavior

Is the buying behaviour of final consumers, individuals and households that buy goods
and services for personal consumption.

II/ Characteristics Affecting Consumer Behavior

Cultural factor, social factors, personal factors, psychologial factors,

(marketer can not control but they must take them into account.)

1/ Cultural factor : Culture….. subculture…..social class

Culture is the set of basicvalues, perceptions, wants, and behavior from family
and other important institutions ( Most basic cause)

Marketers are always trying to spot cultural shifts to discover new products

Subculture: are groups of people within a culture with shared value systems
based on common life experiences and situations(Hispanic american, african american,
asia ameriacan and marture consumers.)

 Hispanic american deeply family oriented and make shopping affair,

children have big say
  African american: strongly motivated by quality and selection
 Asia american: The most influencial US demographic segment. The most
brand conscious of all the ethic groups.
 Marture consumers: Becom a very attrative market

Social class: society’s relatively permanent and ordered divisions whose members
share similar values, interests, and behaviors ( upper class, middle class, working
class and lower class) ( tồn tại trong xã hội tương đối lâu và có vị trí trật tự)

Measured by not only income but a combination of occupation, education,

wealth, and other variables

2.Social factors Small group…. Family…. Social roles and status

a) Groups and Social Networks

 Groups: two or more people who interact to accomplish individual or

mutual goal

Membership groups are groups in which a person belongs, while reference groups
serve as direct points of comparison. Aspirational Groups : Groups an individual
wishes to belong to

word-of-mouth influence of friends and other consumers can have a strong

influence on buying behaviour. Marketers identify them to use as brand
ambassadors

An opinion leader is a person within a reference group who, because of skills,

knowledge, personality or other characteristics, exerts social influence on others

Buzz marketing involves creating opinion leaders to serve as brand ambassadors

 Online Social network : online communities, such as blogs, social

networking sites or even virtual worlds, where people socialize or
exchange information and opinions. (blogs, social networking sites
(facebook), virtual worlds (second life))
B) Family is the most important consumer-buying organization in society.

c) Social roles and status( vai trò và địa vị) are the groups, family, clubs, and
organizations that a person belongs to that can define role and social status

3. Personal factors( age and life-cycle stage, occupation, economic situation,

lifestyle and personality and selfconcept)

a) age and life-cycle stage

tatse in food, clothes, furniture and recreation are often age related.

b) Occupation( ca sĩ mua đồ diễn businessman mua đồ suit..)

c) Economic situation ( include trends Personal income, Savings, Interest rates)

d) Lifestyle a person’s pattern of living as expressed in his or her AIO

dimensions.( Activities –work.., Interest-food clothes, Opinion- themselves, social
issue,..)

e) personality and selfconcept

 Actual self: How a person actually perceives him/herself.

 Ideal self: How a person would like to perceive him/herself.
 Social self: How a person thinks others perceive him/her.
 Ideal social self: How a person would like others to perceive him/her.
 Expected self: An image of self somewhere in between the actual and
ideal self.
 Situational self: A person’s self image in a specific situation.
five brand personality traits

 Sincerity (down-to-earth, honest, wholesome, and cheerful)

 Excitement (daring, spirited, imaginative, and up-to-date)
 Competence (reliable, intelligent, and successful)
 Sophistication (upper class and charming)
 Ruggedness (outdoorsy and tough)
 4.psychologial factors, Motivation….Perception….Learning….Beliefs and
attitudes

a) Motivation

A motive is a need that is sufficiently pressing to direct the person to seek

satisfaction

Motivation research refers to qualitative research designed to find consumer's

hidden motivations.

Marketer use such touchy-feely approach called interpretive consumer research to

did deeper into consumer psyches and develop better marketing strategies.

---- đây là thuyết theo

Maslow; ông cho rằng con người đang cố gắng thỏa mãn nhu cầu cơ bản của
họ, khi nhu cầu đó được thỏa mãn, con người sẽ tiến tới nhu cầu khác cao
hơn.

Theo học thuyết Freud, ông cho rằng quyết định mua hàng của con người bị
tác động bởi động cơ vô ý thức mà chính họ cũng không hiểu rõ đượ
 b) Perception : is the process by which people select, organize, and interpret
information to form a meaningful picture of the world

three perceptual processes: selective attention- sàn lọc consumer screen out all most
hướng đên thông tin họ cần nhất, selective distortion chỉnh đốn Support những gì họ tin
– interpret information quên đi nhưng điều học học. and selective retention khắc họa-
remember good point và bỏ qua nhưng điểm tốt của những sản phẩm khác

c) Learning lĩnh hội the change in an individual’s behavior arising from experience.( 1
ng mua camera hãng sony thấy tốt sau đó lần sau mua rất có khả năng sẽ chọn hãng
sony )

A drive is a strong stimulus that calls for action. Cues are minor stimuli that
determine how a person responds.

d) Beliefs and Attitudes

A belief is a descriptive thought that a person holds about something. An attitude is a

person’s consistently favourable or unfavourable evaluations, feelings and tendencies
toward an object or idea. Attitudes can be difficult to change, because they are usually
part of bigger pattern.

III) Types of Buying Decision Behavior

Complex buying behavior : highly involved in a purchase and perceive significant
differences among brands. This is typical for expensive or self-expressive goods. he
buyer will pass through a learning process, developing beliefs and attitudes and then a
purchase choice will follow(

Dissonance-reducing buying behavior : hành vi mua giảm giá : high involvement but
few perceived differences among brands( vì giảm giá nên mua nhiều nhưng lại ko quan
tâm tới thương hiệu)

Habitual buying behavior: low consumer involvement and few significant perceived
brand differences. Repetition of advertisements can create brand familiarity (but not
 conviction), which can lead to habitual purchases.( quảng cáo ko thuyết phục nhưng
khiến ng dùng quen

Variety-seeking buying behavior low consumer involvement, but significant perceived

brand differences.

IV) The Buyer Decision Process

Step1: Need recognition : Occurs when the buyer recognizes a problem or need
triggered by:

– Internal stimuli : đói thì mua nước

– External stimuli : bạn bè recommend thấy thích nên mua

Step2: Information Search the stage in which the consumer is aroused to search
for more information, the consumer may simply have heightened attention or may
go into active information search.

• Personal sources—family and friends

• Commercial sources—advertising, Internet

• Public sources—mass media, consumer organizations

• Experiential sources—handling, examining, using the product

Step3: Evaluation of alternatives. is the process in which the consumer uses
information to evaluate alternative brands in the choice set.

Step4: Purchase decision: The act by the consumer to buy the most preferred
brand

affected by:

– Attitudes of others( thái độ người khác)

– Unexpected situational factors( sắp chọn rồi xong thấy ad của nhãn
hàng khác)

Step5: Post-purchase behaviour : the stage of the buyer decision process in

which consumers take further action after purchase based on their satisfaction or
dissatisfaction with a purchase.
 key to building profitable relationships with consumers—to keeping and
growing consumers and reaping their customer lifetime value

IV) The buyer decision process for new product

A new product is a good, service or idea that is perceived by some potential

customers as new. The consumer must decide to adopt them or not.

Adoption is the mental process through which a consumer passes from first
learning about an innovation to final adoption. Adoption is the decision by an
individual to become a regular user of the product.
Stages in the Adoption Process : 5

1. Awareness
2. Interest
3. Evaluation
4. Trial
5. Adoption
 Chap5: Customer-Driven Marketing Strategy:
Creating Value for Target Customers

4 steps :
• Market Segmentation
• Market Targeting
• Differentiation and Positioning
 The goal is to create more value for the customers we servethan
competitors do

I) Market Segmentation: Dividing a market into smaller

segments with distinct needs, characteristics, or behavior that might
require separatemarketing strategies or mixes.

1: Segmenting consumer markets

 Geographic Demographic
segmentation segmentation

Psychographic Behavioral
segmentation segmentation

a) Geographic segmentation: dividing a market into different geographical

units, such as nations, states, regions, counties, cities or even
neighbourhoods.
b) Demographic segmentation: dividing the market into different segments
based on variables such as age, gender, family size, family life cycle,
income, occupation education, religion, race, generation and
nationality .=> most popular base.( 1: bởi vì như cầu khách hàng thay đổi
theo sự thay đổi của demo, 2; nhìn vào demo sẽ dễ hơn để thấy sự thay
đổi của mấy cái khác
• Age and life-cycle segmentation is dividing a market into different age
and life-cycle groups
• Gender segmentation means dividing a market based on gender,
• Income segmentation divides a market based on income levels.
c) Psychographic segmentation: dividing a market into different segments
based on social class, lifestyle or personality characteristics.
d) Behavioural segmentation: dividing a market into segments based on
consumer knowledge, attitudes, uses or responses to a product

-occasion segmentation: dividing the market according to occasions

when buyers get the idea to buy, actually making their purchase or
use the purchased item ( mùa chrismas thì sale candy)
 -Benefit segmentation: dividing the market according to the benefits
that customers seek from the product.

-User status : devide into exusers, potiental user,…

-Usage rate : intoclight, medium,..

- Loyal status :

Marketers often use multiple segmentation bases to identify a well-defined

target group. Ngoài ra marketers còn có thể use other variables : operating
characteristics, purchasing approaches and situational factors.

2) Intermarket segmentation: (cross-market segmentation): forming

segments of consumers who have similar needs and buying behaviour even
though they are located in different countries.

For segmentation to be effective, market segments must be

 Measurable : size, purchase power , profile : ví dụ ở mĩ có 30.5 ng thuận

tay trái và rất ít sp cho tay trái điều này do đo lường chưa kĩ
 Accessible: effectively reached and served.
 Substantial: large or profitable enough to serve. ( phân khúc đủ lớn lợi
nhuận đem về đủ nuôi công ty)
 Differentiable : conceptually distinguishable and respond differently to
different marketing mix elements and programs.
 Actionable: Effective programs can be designed for attracting and
serving the segments.

II) Market Targeting : the process of evaluating each market

segment’s attractiveness and selecting one or more segments to enteR

1) Evaluating Market Segments : look at :

 segment size and growth(Quy mô và mức tăng trưởng của khúc thị
trường)
 segment structural attractiveness
  company objectives and resources(Mục tiêu và nguồn lực của
Công ty)
2) Selecting Target Market Segments( targeting
broadly targeting narrowly)
Undifferentiated (mass đại chúng) marketing: : a marketing
coverage strategy in which a firm decides to ignore market segment differences
and go after the whole market with one offer. Tiết kiệm chi phí

Differentiated marketing or segmented marketing: a market-

coverage strategy in which a firm decides to target several market segments and
designs separate offers for each.. chi phí cao bao gồm chi phí sx, quảng
cáo,marketing, dự trữ

Concentrated marketing (niche): a market-coverage strategy in

which a firm goes after a large share of one or a few segments or niches. Đạt được
lợi nhuận trên đầu vốn cao tuy nhiên cũng nhiều rủi ro vì cacskhacsh hàng tiềm
năng đổi ý định hay là các competitor khác chen vô thị trường nhỏ

Micromarketing is tailoring products and marketing programmes to

the needs and wants of specific individuals and local customer segments.

 Local marketing ; tailoring brands and promotions to the need and

wants of local customer segments; cities, neighbourhoods and even
specific stores. Tăng chi phí sản xuất và marketing bằng giảm quy mô
kinh tế, tạo nên vấn đề về logistics, ảnh hưởng hình ảnh
 Invidiual marketing: tailoring products and marketing programmes to
the needs and preferences of individual customers, also called one-to-one
marketing, customized marketing and markets-of-one marketing.( công ty
sản xuất sp theo yêu cầu khách hàng)

Best chiến lược depend on: degree of product variability, marketing variability : khách
hàng same taste : undifferent , competitor’s marketing, strategies
III) Differentiation and positioning

A product position is the way the product is defined by consumers on

important attributes: the place the product occupies in the consumers’
minds relative to competing products.
Differentiation means differentiating the market offering to create
superior customer value.
Positioning is arranging for a market offering to occupy a clear,
distinctive and desirable place relative to competing products in the mind
of target consumers

1) POSITIONING MAP: show consumer perceptions of brands versus

competing products.
2) Choosing a Differentiation and Positioning Strategy
3 STEPS

 Identifying a set of differentiating competitive advantages on which to build a position( xd lợi

thế khác biệt)
 Choosing the right competitive advantages( lựa chọn lợi thế khác biệt)
 Selecting an overall positioning strategy.(chọn chiến lược định vị)

A) Identifying a set of differentiating competitive advantages on which to build a position

Competitive advantage is an advantage over competitors gained by

offering consumers greater value, either through lower prices or by
providing more benefits that justify higher prices

Diffirentiation through : Product, services, channel kênh phấn phối, people,

image

b) Choosing the right competitive advantages( lựa chọn lợi thế khác biệt)

Some marketer still agree nowadays with the USP technique , however there are
others that think that companies should position themselves on more than one
differentiator.

Differences worthy to promote need to be:

 o Important: mang lại lợi ích cao cho khách hàng
o Distinctive: cung cấp đặc biệt ý nghĩa hơn.
o Superior: có sự vượt trội
o communicable : dễ truyền đạt
o Preemptive : ko dễ copy
o affordable : khách hàng có thể mua sự khác biệt
o profitable:

c) Selecting an overall positioning strategy.(chọn chiến lược định vị)

The value proposition is the full positioning of a brand: the full mix of benefits on
which it is positioned. There are multiple possible value propositions, of which five
can be “winning”

A positioning statement is a statement that summarises company or brand

positioning. It takes this form: To (target segment and needs) our (brand) is
(concept) that (point of difference). Once a position is chosen, a company must
take action to deliver and communicate the position to its target customer

1. More for more: upscale products and higher prices.

2. More for the same: used to attack competitors by offering quality at a low price.
3. The same for less: a good deal.
4. Less for much less: a less optimal performance for a low price.
5. More for less: ultimately winning, but difficult to actually achieve.

Chap 6 : Product, Services, and Brands:

Building Customer Value
Product : is anything that can be offered in a market for attention, acquisition, use, or
consumption that might satisfy a need or want

A service is an activity, benefit or satisfaction offered for sale that is essentially intangible and
does not result in the ownership of anything.

Experiences represent what buying the product or service will do for the customer
Products are key in the overall market offering. The market offer might exist of only pure
tangible goods, pure services and everything in between. Product planners need to consider three
levels when deciding on services and products. The first one is the core customer value level.
Secondly, the core benefit must be turned into an actual product. Finally, an augmented product
must be built around the actual product by offering services.

1) Levels of Ps and Ss.

Product được chia thành cấp độ:

 Core customer value level.

 Actual product

 An augmented product

1. Argumented Product - cameras , parallel parking etc dịch vụ delivery

and credit, after self service, product support, warranty, đây chính là vũ
khí cạnh tranh của sản phẩm
2. Actual Product - Adidas vs. Converse tên nhãn hiểu yếu tố bên ngoài
the brand name, features/design, quality level, and packaging
3. Core Product - Bare minimum clothing to cover up bodies, coffee,
most practical use : mang lại lợi ích cơ bản
2) Products and services classification
 Consumer products
 Industrial products
 Organizions, persons, places, and ideas

A) Consumer products: are products bought by final consumers for

personal consumption.

Convenience products: a type of consumer product that consumers usually buy

frequently, immediately and with minimal comparison and buyer effort.

 Low price, convienient locations, mass promotion: candy, magazine, laundry,.

 Shopping product : consumer products that the customer, in the process of selecting and
purchasing, usually compares on such attributes as suitability, quality, price and style

 Higher price, in few outlets, quảng cáo bởi cả nhà sx, và ng bán, TV,
Furniture, clothes

specialty products : unique characteristics or brand identification for which a significant

group of buyers is willing to make a special purchase effort.

 High price, exclusive distribute, quảng cáo bởi ng bán và sx đặc biệt kĩ :
luxury goods

Unsought products : the consumer does not know about or knows about but does not
normally think of buying
--> price varies, distribution varies, agresssive ad : life insurance, blood
donation.

B) Industrial Products : products bought by individuals and organisations for further

processing or for use in conducting a business

Materials and parts:

 Raw materials : farm product, lúa mì,… Natural product: cá , thịt, dầu
xăng,

 Manufactured materials and part: coponent material : cement, yarn, and

coponent part : small motor, tire, castings.

Capital items: industrial products that aid in the buyer's production or

operations( sản phẩm công nghệ hỗ trợ sản xuất) máy khoan ….

Suplies and services :include operating supplies and repair and maintenance.
Supplies are the convenience products of industrial field.( giấy bút chì)

C) Organizions, persons, places, and ideas

 Social marketing is the use of commercial marketing concepts and tools in
programmes designed to influence individuals’ behaviour to improve their
well-being and that of society.

II) PRODUCT AND SERVICE DECISION :

 Individual Product and Service Decisions

 Product line decision
 Product mix decision

1) Individual Product and Service Decisions

Product attributes branding PackagingLabeling Product support services

a) Product attributes: Phát triển sp thì phải define benefit delivered

 Product quality : Is one of a product or service that bear on its ability to satisfy stated or
implied customer needs.“ quality is when our customer back and our products don’t”
-> one of the marketer’s major positioning tools.
Total quality management (TQM) is an approach where the whole company is
involved in constantly improving the overall quality.
2 dimension : Quality level : mean perfomance quality- ability of product to perform
ít function

:Consistency: mean conformance- freedom form defects and

consistency
 Product feature : tools to differentate with other compertitors.
Company should servey customer
 Product design and style: Style: describes the appearance of the product , có thể gây
chú ý tới khách hàng nhưng ko cần thiết để improve perfomance

Design contributes to a product’s usefulness as well as to its

looks
 b) Branding: A brand is a name, term, sign, symbol, design or a combination of
these that identifies the products or services of one sell or group of sellers and
differentiates them from those of competitors.
Brand help buyer and seller
c) Packaging: involves designing and producing the container or wrapper for a
product. Innovative packaging can give a competitive advantage.
d) Label: Labels identify the product or brand, describe attributes, and provide
promotion .-> be affected by unit price and nutritional labeling
e) Product suppport services: the company must:
a. Assess the value of current services to obtain ideas for new ones.
b. Assess the costs of providing these services.
c. Develop a package of services to satisfy customers and provide profit to the
company.
2) Product line decision
Product line is a group of products that are closely related because they function in a
similar manner, are sold to the same customer groups, are marketed through the same
types of outlets, or fall within given price ranges
Major product line : line stretching
Product line filling occurs when companies add more items within the present range of
the line.
• Downward product line stretching is used by companies at the upper end of the
market to plug a market hole or respond to a competitor’s attack.
• Upward product line stretching is by companies at the lower end of the market to add
prestige to their current products.
• Combination line stretching is used by companies in the middle range of the market to
achieve both goals of upward and downward line stretching.

3) Product mix decision

Product mix consists of all the products and items that a particular seller
offers for sale
4 dimension:
  Product mix width is the number of different product lines the company carries. Rộng,
sự đa dạng
 Product mix length is the total number of items the company carries within its product
lines.
 Product mix depth is the number of versions offered of each product in the line.( độ sâu
phiên bản)
 Consistency is how closely the various product lines are in end use, production
requirements, or distribution channels ( nhất quán).
IV) SERVICE MARKETING
V) BRANDING STRATEGY: BUILDING STRONG BRANDS.
Brand equity is the differential effect that knowing the brand name has on customer response to
the product or its marketing.
Brand equity can be a powerful asset. Brand valuation is the process of estimating the total
financial value of a brand.

1)BUILDING STRONG BRANDS

A) Brand positioning : depend don

Product attributes
Product benefits
Product beliefs and values
B) Brand name seletion: should suggest benefit and quality, easy to pronounce,
distinctive, translate easyly, extendable,registration and leagal protection.
C) Brand sponsorship
 Manufacturer’s brand: national brand
 Private brand: store brand, a distributor brand or an own-label, đại lý bán cho các nhà
cung cấp riêng.
  Licensed brand: thay vì bỏ nhiều tiên làm thương hieur riêng thì mua
 Co-brand : 2 thương hiệu hợp tác
D) Brand Development Strategies: four choices: line extensions, brand extensions,
multibrands or new brands.

 line extensions occur when extending an existing brand name to new forms,
colours, sizes, ingredients or flavours of an existing product category.--> CHÍ PHÍ
THẤP RỦ RO THẤP NHƯNG MẤT GIÁ TRỊ SP CỤ THỂ

 brand extension extends a current brand name to new product categories. Mở

rộng thương hiệu mới , ít tốn chi phí quảng cáo tuy nhiên có thể làm mỏ đi sp
chính và nếu như sp mới ko thành công ảnh hưởng tới các sp cùng công ty.
 Multibrands means offering more than one brand in the same category : unilever
P&G . Tuy nhiên chỉ có 1 thị phần nhỏ lợi nhuận.

 New brands can be created when believed that the power of existing brands is
fading.

Services marketing Firms must decide upon four service characteristics

when designing marketing programmes. Service intangibility: services cannot be
seen, tasted, felt, heard or smelled before they are bought. Service
inseparability: service are produced and consumed at the same time and cannot be
separated from their providers. Service variability: the quality of services may
greatly vary depending on who provides them and when, where and how. Service
perishability: services cannot be stored for later sale or use.

IV) New-Product Development Strategy

New product development is the development of original products, product
improvements, product modifications and new brands through the firm’s own product
development effort

STEPS : 8

1. Idea generation: the systematic search for new-product ideas. Ideas can be found via
internal sources, but also external idea sources. These can be distributors, suppliers, but
also competitors. BUT the best : customers. Crowdsourcing means inviting broad
 communities of people – customers, employees, independent scientists and researchers
and even the public at large – into the new-product innovation process.
2. Idea screening: screening new-product ideas to spot good ideas and drop poor ones as
soon as possible.
3. Concept development and testing. Product concept is a detailed version of the new
(mẫu) product idea stated in meaningful consumer terms. Concept testing means testing
new product concepts with a group of target consumers to find out if the concepts have
strong consumer appeal.
4. Marketing strategy development: designing an initial marketing strategy for a
new product based on the product concept. It consists of three parts:

 describing the target market and value proposition,

 outlining the budgets and
 lastly describing the long-term marketing mix strategy.

5. Business analysis is a review of the sales, cost and profit projections for a new
product to find out whether these factors satisfy the company’s objectives.
6. Product development: developing the product concept into a physical product to
ensure that the product idea can be turned into a workable market offering.
7. Test marketing: the stage of new product development in which the product and its
proposed marketing programme are tested in realistic market settings.

 Standard test markets are small representative markets where the firm conducts
a full marketing campaign and uses store audits, consumer and distributor surveys,
and other measures to gauge product performance. Results are used to forecast
national sales and profits, discover product problems, and fine-tune the marketing
program.
 Controlled test markets are panels of stores that have agreed to carry new
products for a fee. In general they are less expensive than standard test market,
faster than standard test markets, but competitors gain access to the new product.
 Simulated test markets are events where the firm will create a shopping
environment and note how many consumers buy the new product and competing
products. Provides measure of trial and the effectiveness of promotion.
Researchers can interview consumers.( ko đắt nhưng nhanh và giưới hạn
copetitors tuy nhiên ko được chính xác lắm và tin tưởng)

8. Commercialisation: introducing a new product into the market.

VI) Product Life-Cycle Strategies:

 Product development: development of the idea without any sales.
 Introduction: slow sales growth when the product is introduced.
 Growth: period of rapid acceptance.
  Maturity: period of sale slowdown because of acceptance by most
potential buyers.
 Decline: the period when sales fall and the profit drops.

the PLC is associated with modification of the product, market, or the

marketing mix? maturity

Chương 7: Pricing :Understanding and

Capturing Customer Value

A price is the amount of money charged for a product or a service, the sum of the values that
customers exchange for the benefits of having or using the product or service

Price is the only element in the marketing mix that produces revenue; all other
elements represent costs

I) Major Pricing strategies : 3 STRATEGIES

1) Customer Value-Based Pricing: uses the buyers’ perceptions of

value, not the sellers cost, as the key to pricing. Price is considered
before the marketing program is set.

Value-based pricing is customer driven

 Cost-based pricing is product driven

 good-value pricing : offers the right combination of quality and good

service at a fair price

 value-added pricing : Value-added pricing attaches value-added features

and services to differentiate offers, support higher prices, and build pricing
power

2) Cost-Based Pricing : means setting prices based on the cost for

producing, distributing and selling the product plus a fair rate of return
for effort and risk.
a) Types of cost :
 Fixed cost: do not vary with production or sales level Rent,Heat
Interest, Executive salaries
 variable cost: vary with the level of production :Packaging,
Raw materials
 Total cost: the sum of the fixed and variable costs for any given
level of production

Chap8 :Marketing Channels: Delivering

Customer Value
I) Supply Chains and the Value Delivery Network
  Upstream partners include raw material suppliers, components, parts,
information, finances, and expertise to create a product or service
 Downstream partners include the marketing channels or distribution
channels that look toward the customer
 Supply chain “make and sell” view includes the firm’s raw materials,
productive inputs, and factory capacity
 Demand chain “sense and respond” view suggests that planning
starts with the needs of the target customer, and the firm responds to
these needs by organizing a chain of resources and activities with the
goal of creating customer value
The marketing channel (distribution channel) is a set of interdependent
organisations that help make a product or service available for use or
consumption by the consumer or business use
II) The Nature and Importance of Marketing Channels
1) How Channel Members Add Value