Factors Affecting Channel Choice

In class this week, we talked about the factors that affect channel choice. Managers must answer quite a few questions before choosing a market channel. In order to a choose a market channel, managers must analyze several factors, which interact often. Theses factors are normally grouped as market factors, product factors, and producer factors.

Producer Factors: Factors having to do with the producer are very important to the selection of a market channel. In general, producers with large, financial, managerial, and marketing resources are better abel to use more direct channels

Product Factors: Products that are more complex, customized, and expensive tend to benefit from shorter and more direct marketing channels.

Market Factors: Target customer considerations is one of the most important market factors affecting the choice of distribution channel. Specifically, managers should answer certain questions: Who are the potential customers? What do they buy? Where do they buy? When do they buy? How do they buy? In addition, the choice of channel depends on whether the producer is selling to consumers or to industrial customers.


Out of these 3 group factors, which one do you think is the most effective when it comes to channel choice?

In response to Katie Longchamp's post

After some research, a company that I found that Amazon.com uses one on one marketing. Amazon offers users targeted offers and related products. Once a customer of Amazon buys a product, Amazon will offer other products that the consumer might like based off of what they had purchased in the past.
As an Amazon user myself, I think that this company is doing very well using the one on one marketing. Whenever I purchase a product from Amazon, they always recommend me another product that I may be interested in or something similar to what I have already purchased. Overall, I feel that Amazon has a great amount of success from one on one marketing.

Self Concept

As described in our book, self concept, or self perception is consumers perceive themselvels. Self-concept includes, attitudes, perceptions, beliefs, and self evaluations. Although self concept may change, the change is often gradual. Through self concept, people define their identity, which in turn provides for consistent and coherent behavior.
Self concept combines two different types of self image. The first is ideal self image, which is the way an individual would like to be perceived. The second is real self image, which is how an individual actually perceives himself or herself. In today's society, we generally try to raise our real self-image toward our ideal self image or at least narrow the gap between them. An example of this would be someone who sees herself as a trendsetter, and wouldn't buy clothing that doesn't project a contemporary image.

Can any of you think of a certain time that you wanted to buy a product to raise your real self-image? If so, did you end up buying the product?

Consumer Involvement

     In class this week, we talked about the factors determining the level of consumer involvement. The level of involvement in the purchase depends on the following factors:

1. Previous experience- when consumers have had previous experience with a good or service, the level of involvement typically decreases. After repeated product trials, consumer learn to make quick choices.

2. Interest- Involvement in directly related to consumer interests, as in cars, music, movies, or electronics. A person highly involved in their interest, such as bikes, will be more interested in that topic and spend much more time evaluating different types of bikes.

3. Perceived risk of negative consequences- As the perceived risk in purchasing a product increases, so does the consumer's level of involvement. The types of risk that concern consumers include financial risk, social risk, and psychological risk.

4. Social visibility- Involvement also increases as the social visibility of a product increases. They make a statement about the purchaser and carry a social risk.


What level do you think relates most to your consumer involvement?

In response to Katie Longchamp's post

Can you think of any products in which consumer perception caused them to flop?


After doing some research, I found a product in which consumer perception caused them to flop. According to the website, The Research Bunker,  a product called LifeSavers Drink suffered from consumer perception.

Source: http://rmsbunkerblog.wordpress.com/tag/product-flops/

The perception of this product was comparable to consuming a bottle of liquid candy. Everybody loves candy, but occasionally people have to limit themselves to the amount that they consume, and consumers took this into account before buying the product.

In Response to Tammy Chou

Which category of new product do you think is the most popular, why? Do you think by looking at the new product of Diet Pepsi with its new packaging it would target you to buy the product?


            I believe that the category of new product that is most popular would have to be additions to existing product lines. Many companies already have really successful product lines that they would not think to get rid of, but they also want to expand on their customer's favorite products. Additions to existing product lines would expand the products, and give consumers a bigger variety of the the product that they love and enjoy.
            Looking at the new product of Diet Pepsi, I would definitely buy the new product. The new product packaging is sleek, new and fresh for todays consumers. If I saw new packaging for Diet Pepsi, I would definitely want to try it out considering I already enjoy the other Diet Pepsi products.

Branding

    In class this week, we discussed the topic of branding. Branding is the main tool marketers use to distinguish their products from those of their competitors. Branding consists of a brand, a brand name, and a brand mark. A brand is a name, term, symbol, design or combination that identifies a seller's product. A brand name is that part of a brand that can be spoken, including letters. A brand mark is the elements of the brand that cannot be spoken.
    We also went deeper into branding with its benefits. Branding has three main purposes:

1. Product Identification: Branding allows marketers to distinguish their products from all others.

2. Repeat Sales: This is the best generator to satisfy customers. Branding helps consumers identify           products that they want to buy again.

3. Facilitate New-Product Sales: Having a well-known respected company and brand name is extremely useful when introducing new products.

With these benefits, a company can continue to gain sales, have their customers identify their products, and keep them interested when introducing new products.


Do you believe that one of these purposes are more significant than another when it comes to branding? If so, why do think so?