While grocery store attendants do not stop you within minutes of being in the store and ask how they can help you find what you need, anyone walking into a car lot will surely be approached within the first five minutes of arriving. The major difference is the gross margins and profits for each of these products.
In the case of the grocery store, margins and profits per item are quite small and there is a very short sales cycle for them. Picking up a roll of paper towels for example is a sales cycle of just three minutes or less, and as a result there is no need to provide service from the grocers' perspective.
Conversely the sales cycle of a car can be days or even months, and there is a significant amount of gross margin and profit involved in the product itself. For the salesman, there is a commission involved, or cash in their pocket, if they can convince you to buy the cars they are selling. For the auto sale there are also many other factors that contribute to the complexity of the decision itself. Colors, use of the vehicle, style, reliability and maintenance record, and many other factors all go into the decision. All of these considerations lead to a longer sales cycle. As a result there is the...
There are many, many other factors to consider, but the fact is many manufacturers consider these two factors first, as they combined will save hundreds of hours and thousands of dollars in addressing a new market. As a result of the relationships with retailers, chains and department stores and a thorough overview of how to make the order management and fulfillment processes as efficient as possible, distributors like Lambert are
This is called becoming a trusted advisor to the customers, and while there are many books written on this topic every year, the concept of the trusted advisor is that the members of a distribution channel form a team to assist customers in assessing their needs, modifying products to specifically meet those needs, and creating a strong foundation of support. AMR Research (2003) in defining the complexity of fulfilling
IBM Case Study What is the key problem facing IBM Europe managers (at the end of the case)? It is a complex problem of recruiting more resellers for the new B2B initiative based on order capture, distributed order management, and minicomputer product configuration and customization workflows running RosettaNet PIPs over an XML network. This problem was made more complex by the fact that for any reseller to participate in the new B2B
Tide The term marketing refers to identification and anticipation of consumer needs and wants and then satisfying them in a profitable manner. With the increase in globalization and consumer knowledge, marketing has evolved to become a comprehensive field with rapidly changing dynamics and is a key contributor in the success and failure of any business. The way a marketing strategy of any product is designed depends greatly on whether the commodity is
Second, corporations can also structure promotions that are more effective that also align with my interests. An example of this is the use of business intelligence on the part of iTunes to deliver only the new releases I am interested in, and the selective use of e-mail blasts on only the new cars I am interested in. A third advantage is the fact that when I walk into a
The company's consistent top line revenue growth also illustrates it has been successful in transforming its supplier network into one that operates more on knowledge, less on purely price or product decisions. As a result the company is capable of competing more at the process level and less at the purely price-driven one (Reese, 2007). In terms of the company's factors for success, the greater opportunities is to move into
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