• Title/Summary/Keyword: Marketing channel

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Development of a New Direct Marketing Channel in the Chinese Rural Market: The Case of Hongfu Fertilizer Company

  • Li, Dao-sheng;Hong, Jinhwan
    • Asia Marketing Journal
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    • v.15 no.2
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    • pp.29-47
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    • 2013
  • Distribution channel decisions involve long-term commitments with other firms that are very difficult to change or replace. In particular, marketing channel decisions in emerging markets are much more complicated due to unfamiliar conditions and problems such as lack of market data and distribution systems. Therefore, when a company considers changing or introducing a marketing channel in an area, it is much more difficult to judge its effectiveness in an emerging market than in a developed market. In this study, we investigate the development process of a new direct marketing channel of Hongfu Fertilizer Company (hereafter Hongfu), a medium-sized Chinese fertilizer manufacturer, and propose an approach to test the feasibility of this new marketing channel in the Chinese rural market. We measure the effectiveness of Hongfu's new marketing channel from two perspectives: i) from customers' perspective through direct responses of farmers, which showed that a new channel can increase the convenience and lower the purchasing costs for the farmers, and ii) from the company's perspective, by calculating the incremental profit of the company using the expansion factor (T/Q) method, which suggested that the execution of Hongfu's strategy to expand a new marketing channel will result in an increase in profits. The results of this study contribute to the development of a methodology to test the feasibility of a new direct marketing channel in the emerging markets such as the Chinese rural market. Traditional and indirect distribution channels in emerging markets are generally not very efficient and difficult to change. Especially, in emerging markets, like the Chinese rural market, the methods of testing channel feasibility must be different from that of developed markets. Considering market situations, market experiments can be more effective then systematic market surveys in testing channel feasibility in emerging markets. This study implies that managers must learn to cope with a transition from the traditional marketing channels in emerging markets. With the development in farmers' understanding of marketing concept, the transition from traditional marketing channel is unavoidable for all firms. Farmers in China are generally very conservative, however, their buying behaviors are changing. Therefore, fertilizer companies should try to adjust in accordance with farmers' demand characteristics that the efforts to meet the economic needs of farmers with new marketing channels as well as trust building are critical in the near future.

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A Study on the Marketing of Fishermen′s Cooperative in Korea -Especially with the Problems of Marketing Channel- (수산업협동조합의 마아케팅에 관한 연구 - 마아케팅 경로를 중심으로 -)

  • 안세원
    • The Journal of Fisheries Business Administration
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    • v.12 no.2
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    • pp.61-71
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    • 1981
  • This essay examines the marketing of Fishermen's Cooperative in Korea, and in particular considers the marketing channel of fisheries products, No company can perform by itself all the activities involved in the production and distribution of its products and services to its final markets. It must work with other firm to get the job done. Thus marketing channel firms of the fisheries products include primarily the Fishermen's Cooperative the licensed dealers and tile merchant middlemen, The goal of marketing is in matching of segments of supply and demand. Every producer seeks to the link the marketing channel firms that will help it accomplish its objective best. Therefore this study surveys the three types of marketing channels through tile central market That. is, they are a marketing channel through the terminal market, a marketing channel through the fishermen's cooperative terminal market, and a marketing channel through the private fish market. Consequently the Fishermen's Cooperative can choose to improve in any of tile marketing channel as follows: \circled1 The Fishermen's Cooperative is nominated wholesaler in the terminal market. \circled2 It is abolished to sell by double auction in the production district terminal market and the consuming city terminal market of Fishermen's Coopertive. \circled3 The steady wholesalers in private fish market are entitled to the licensed dealers. \circled4 The Fishermen's Cooperative sponsored voluntary chains join with retailer, supermarkets, consumers' society. Therefore the study of marketing channel of fisheries products can appropriately referred to satisfying needs and wants through exchange process.

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Fisheries Marketing Management Effectiveness of Discount Store (대형할인점의 수산물유통효율성에 관한 연구)

  • 장영수
    • The Journal of Fisheries Business Administration
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    • v.35 no.1
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    • pp.169-191
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    • 2004
  • This Study attempts to analysis the degrees of the efficiency of fisheries marketing channel's effectiveness, which are traditional marketing channel's effectiveness of fisheries wholesale markets and Discount Store's effectiveness such as margin, marketing performance. The study methodologies include not only a field sample survey but also a field interview. The results of this study are summarized as follows. First, at the numbers of fisheries marketing channel's margin factors, traditional marketing channel's margin factors are more than discount store's margin factors. Secondly, at the comparative study result of marketing channel margin efficiency, traditional marketing channel's prices are similar to discount store's prices. That is, consumers have bought similar retail price's seafood products through traditional marketing channels as well as discount stores cannels. Finally, however most consumers prefer discount stores to traditional retail stores because of discount store's multi-functions such as assortment of goods, freshness, exchange, refund and employee's kindness. In conclusion, the most important factor of fisheries marketing management is to realize the appropriate balance between marketing margin and consumer satisfaction.

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The Effect of Product Type and Channel Prioritization on Effective Digital Marketing Performance (디지털 마케팅 성과에 영향을 미치는 제품의 유형과 디지털 채널 선정에 관한 연구)

  • Han, Ji-Young;Kim, Wan-Ki
    • Journal of Distribution Science
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    • v.13 no.5
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    • pp.91-102
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    • 2015
  • Purpose - This study aims to build a systematic frame for effective marketing performances by prioritizing product type and pertinent channel that are appropriate for digital channel characteristics. FCB grid model was used to define a product type, and Internet communication satisfaction index was considered as a marketing performance measuring tool for digital channel. Research design, data, and methodology - As systematic understanding for Digital marketing is still unfamiliar to even professional marketer, the hypothesis was established based on preliminary research by conducting a qualitative survey of marketing experts who already experienced digital marketing in the fields as well as existing related study literature. Through a preliminary research, the degree for understanding for digital marketing, current digital marketing (including product/channel mix) execution status, and difficulties for marketers who had experienced digital marketing were figured out. Based on preliminary research, the main part of survey was designed to examine which type of product would be effective for digital marketing and which digital channel would be effective to achieve marketing performance in line with marketing objectives. To collect data, the questionnaire survey was conducted for professional marketers who had experienced digital marketing in 10 different fields including FMCG, cosmetics, distribution industry for one month (July, 10, 2014~Aug, 10, 2014). A total of 90 questionnaire were distributed and 66 questionnaires were used for the analysis, excluding the unanswered and insincere questionnaires. The data were analysed using SPSS ver.18.0. Results - The analysis for product type which is pertinent to digital marketing and prioritization for digital channel per digital marketing performance type could be summarized as followings. First, high involvement buying decision type of product and rational purchasing decision type of product in FCB grid are more effective for digital marketing in terms of marketing performance. Therefore, marketers in field would prioritize considering product type before executing digital marketing. Second, factor for sales increase, potential consumer creation and brand awareness was represented respectively 31.25%, 21.9%, and 20.8% as a result of factor analysis in terms of digital marketing channel performance. Third, effective major digital channel per digital marketing performance factor was differently identified as each digital channel has its own peculiarity. For instance, search engine is more effective for increasing sales while social media such as facebook and Kakaotalk is more effective for encouraging consumer participation. Conclusions - As a result of this study, product type and peculiarity which were pertinently fit to digital marketing were identified by using FCB grid model, and also suggested framework for decision making of digital channel selection in line with marketing objectives for effective marketing performance. It also provided insight to professional marketer which type of product could be effective for digital marketing execution as well as which factors should be measured for digital marketing performance.

제조업 유통경로관리 특성과 개선방향

  • 박윤재
    • Journal of Distribution Research
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    • v.1 no.1
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    • pp.65-81
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    • 1996
  • Despite the impressive economic growth over the past several decades, Korea's distribution sector has remained quite underdeveloped. Until recently, management of the marketing channels also has been staying at an unsophisticated level. The Korean marketing channel system is largely characterized by 1) undifferentiated channel types among the competing manufacturers, 2) dominance by the manufacturers over the other channel members, 3) high level of conflicts among the channel members, 4) inefficient marketing information system, and 5) lack of managers properly trained in channel operation and management. Currently, major change factors emerged and has begun to directly affect the Korean marketing channel system. The most salient changes surrounding the Korean marketing channel system are 1) complete opening of the marketing channels for the foreigners, 2) emergence and spread of new types of channels 3) adoption of advanced information technology by the various channel members, 4) increase in flexibility in production and supply systems, 5) shift of power toward the retailers away from the manufacturers, 6) growing trend for cooperation and alliance among the traditional marketing institutions. To these changes the manufacturers have been reacting, rather than proacting, mostly using defensive measures. The proactive measures that are recommended on behalf of the manufacturers include 1) installation of the strategic channel management system, 2) development of the skills for efficient interorganization management, 3) investing in efficient system for marketing information and logistics management, 4) more efficient management of brands, and 5) maintenance of price-competitiveness.

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Analysis on the Marketing Efficieny of Paprika (착색단고추의 유통효율성 분석)

  • Sim, Jong-Sub;Kim, Jin-Suk
    • Journal of agriculture & life science
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    • v.44 no.1
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    • pp.69-80
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    • 2010
  • The purpose of this study is to analyse current marketing practices and marketing efficiency using operational efficiency. Through field survey on marketing situations and channels, we found that major marketing channels of paprika were classified into six types : channels in exporting market included (1) producer's organization leading channel (type I), (2) regional cooperative leading channel (type II), (3) individual producer leading channel (type III), and channels in domestic market included (4) wholesale markets targeting channel (type IV), (5) distribution agents targeting channel (type V), (6) cooperative system selling channel (type VI). According to the estimated result of operational efficiency of marketing channels, marketing efficiency of type III and IV was relatively higher than type I,II and type V, VI respectively.

Managing Hybrid Marketing Channels for Fashion Apparel Industry(in Korea) (패션의류시장에 있어서 하이브리드 마케팅 경로 관리 연구)

  • Shon, Sanggi;Kwon, Soongi;Kim, Stephen K.
    • International Area Studies Review
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    • v.12 no.3
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    • pp.89-109
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    • 2008
  • Using hybrid channel affords the benefits of achieving control through the direct channel and achieving flexibility through the indirect channel. However, using a hybrid channel also poses special challenges to a manufacturer, including the problem of managing multiple channel members with disparate goals and priorities. The purpose of this study is to enhance our understanding on the management of hybrid channel. We study marketing channels for fashion apparel to examine governance challenges and solutions of a hybrid channel. We have two objectives to fulfill that purpose. First, we aim to tie two largely separate research streams of salesforce management and marketing channel management together by examining both intrafrim governance and interfirm governance issues under one conceptual framework. Second, we aim to lay a ground work for rigorous further research on this topic by tying two major theoretical approaches of governance together under one conceptual framework. Our predictions were tested with data from the survey of apparel manufacturers and retailers. The analysis results support the predictions moderately.

Analysis of marketing Channel competition in Electronic Commerce Incorporating Web Awareness (Web 인지도를 반영한 전자상거래 마케팅 채널 경쟁에 관한 연구)

  • 차춘남;조형래
    • Korean Management Science Review
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    • v.17 no.3
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    • pp.49-60
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    • 2000
  • The proliferation of electronic commerce(EC) has led manufactureres to consider Internet based marketing as a salient candidate for strategic diversification of marketing channel. In this case, each manufacturer can build its own Web store or rent an existing special EC store. Such decision making of ‘build’ or ‘rent’ can be analyzed by a game model which derives the Nash solutions for price and profit considering degree of competition with other competitive manufacturers. In this paper, to overcome the drawbacks of the traditional linear demand function, we first propose a new linear demand function which incorporates not only the price difference between competitive products but the awareness of Web stores perceived by the consumers, then design the game models to analyze the characteristics of three typical types of marketing channel in duopoly market. Based on the Nash solutions of the game models, we analyzed the effect of the degree of competition and Web awareness in selecting the optimal marketing channel.

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Improving the Efficiency of Marketing Channel between a Wholesaler and a Retailer with Uncertain Characteristics

  • Lee, Kyung-Keun
    • Journal of the Korean Operations Research and Management Science Society
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    • v.19 no.1
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    • pp.169-187
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    • 1994
  • The efficiency of marketing channel of distribution between a sholesaler and a retailer with uncertain characteristics can be improved by influencing the retailer's ordering pattern. The wholesaler with large unit invetory holding cost can offer a large quantity discount tanks to the great benefit which comes from the transfer of part of his inventory to retailer. The retailer's increasing average inventory holding cost can be offset by the quantity discount and by savings of the ordering cost. Conditions under which marketing channel improvement can be possible are derived.

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A Qualitative Study on the Internal Marketing of Fashion Companies in the Omni Channel Fashion Distribution Environment -Focused on the Woman's Clothing Salesperson- (옴니채널 유통환경에서 패션기업의 내부마케팅 구성요인 -여성복 판매원을 중심으로-)

  • Jungjin Lee
    • Journal of Fashion Business
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    • v.27 no.1
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    • pp.16-35
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    • 2023
  • The advent of Omni Channel has changed the fashion business model and the role of fashion sales persons. In such situation, internal marketing can become an important organizational management strategy for fashion companies. Therefore, the purpose of this study is to identify the components of internal marketing of fashion companies for fashion shop masters in an omni channel environment. To achieve the purpose of this study, To achieve the purpose of this study, a qualitative study was conducted to investigate the internal marketing sub-factors of fashion companies. In-depth interviews were conducted for qualitative study. Seven respondents to the in-depth interview were fashion shop masters who had at least 10 years of field work experience. As a result of the qualitative study, internal marketing was derived from five factors, including empowerment, education and training, rewards, internal communication, and management supports. Empowerment factors consist of initiative, encourage creativity, and problem solving. Education and training factors consist of the degree of education and training opportunities, the value of education and training, and the scope of education and training. Rewards factors consist of diversity of rewards, fairness of rewards, and source of rewards. Internal communication factors consist of communication flexibility, diversity of communication and receptivity of communication. Management support factors consist of headquarters support and department store support.