Term
A Framework for Market Analysis
Four basic dimensions: |
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Definition
1. Market geography
2. Market size
3. Market density
4. Market behavior |
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Term
| Market Geography and Channel Design Strategy |
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Definition
| Market geography refers to the geographical extent of markets and where they are located. The channel manager is charged with the task of evaluating market geography relative to channel structure to make sure that the structure is able to serve the market effectively and efficiently. |
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Definition
| The number of buyers or potential buyers (consumer or industrial) in a given market. |
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Definition
| Refers to the number of buyers or potential buyers per unit of geographical area. This market dimension should also be considered in channel design strategy because of its relationship to channel structure. |
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Definition
| According to this concept, congested (high-density) markets can promote efficiency in the performance of several basic distribution tasks, particularly those of transportation, storage, communication, and negotiation. |
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Term
| Market Behavior consists of four subdimensions: |
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Definition
When the market buys
Where the market buys
How the market buys
Who buys. |
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Term
| Two important implications to When people buy |
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Definition
- First, seasonal variations tend to create peaks and valleys n the manufacturer’s production scheduling.
- Second, channel members should attempt to select channel members who are in tune with the changing patterns of when people buy. |
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Term
| What determines Where people buy? |
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Definition
The types of outlets from which final buyers choose to make their purchases and the locations of those outlets determine where the market buys. Closely related to the market geography dimension.
To develop an effective channel design strategy, the channel manager needs to know where customers generally buy particular types of products and whether these patterns may be changing. |
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Term
| Eight behaviors related to how customers buy at the consumer level: |
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Definition
1. large quantities versus small quantities purchased in each transaction
2. self-service versus assistance by salespeople
3. one-stop shopping versus buying from several stores
4. impulse buying versus extensive decision making prior to purchase
5. using cash versus credit
6. shopping at home versus shopping at stores
7. expending substantial effort through comparison shopping versus little effort
8. demanding extensive service versus little service |
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Definition
Who makes the physical purchase?
Who takes part in the buying decisions? |
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