Sales through department stores account for about one-third of the $170 billion world market for cosmetics. One of the major reasons— perhaps the most important reason—for department stores’ ability to hold their own in the sale of cosmetics despite heavy competition from mass merchandisers, supermarkets, and drug chains is their use of trained salespeople (cosmeticians) who are able to provide personal attention and advice to customers. Might this same approach to promotion work for a wider range of products, even in the face of the long-term trend toward mass self service selling and away from personal selling at the retail level? Discuss.
Answer to relevant QuestionsPush type promotions are not limited to the supermarket or the Chevrolet dealer. Some manufacturers of “highbrow” products also do their share of push promotion. For instance, Steinway & Sons, the almost 150-year-old ...Discuss how the just-in-time inventory (JIT) system works. Why has this development had such a profound effect on logistics and channel management? Discuss the relationship between channel management and logistics management. Is one of these areas more important than the other? Explain why or why not. Cross docking, or flow-through distribution, which eliminates storage in the warehouse and the subsequent need to pick stock to fill orders, can dramatically reduce labor and inventory carrying costs. The concept seems ...Why should the channel manager be concerned about the failure of channel members to live up to inventory stocking agreements?
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