Week 10

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University of the Cumberlands *

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533

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Marketing

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Jan 9, 2024

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docx

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Reflection & Discussion Forum - Week 10 University of the Cumberlands BADM 533 - M42 Marketing Management Dr. Douglas Ross November 02, 2023 Summary – Chapter 10

In this chapter, Iacobucci delves into the concept of "breaking bulk," which involves dividing a substantial supply of products into smaller units to facilitate customer sales. The use of SKUs (Stock Keeping Units) is explained, serving as distinctive numbers used by retailers to identify a product's price, options, and manufacturer. The chapter provides an examination of distribution channels, addressing their advantages and drawbacks. It underscores the importance of companies determining effective distribution channel for their products. Three primary distribution routes are identified: direct from the manufacturer to the consumer, via a retailer to the consumer, and through a manufacturer to a wholesaler, then to a retailer, and ultimately to the consumer. The chapter introduces the concepts of supply chain management for dealings with upstream partners and channel membership for interactions in the opposite direction. It also distinguishes between two marketing approaches: push marketing and pull marketing. The chapter acknowledges that conflicts may arise within distribution channels, typically rooted in financial matters. The chapter also discusses retailing choices, such as selecting specialty stores or general merchandise retailers, based on product characteristics and service quality. It underscores the growing significance of self-service options and the use of digitalized information in the retail sector. Ultimately, the chapter emphasizes that companies should not limit themselves to a single distribution channel and should explore multiple options. Integrated marketing channels are seen as an avenue for achieving synergistic benefits when multiple channels are employed. Graduate Level Response

Question 1: Comparative Analysis of Franchises It is essential to assess various factors, including fee structures, benefits for franchisees, and the industry they belong to. I chose two fast-food franchises, McDonald's and Subway, along with a hair-cutting franchise, Supercuts, for analysis. Franchise Industry Upfront Fee Continued Licensing Fee Benefits for Franchisees McDonald' s Fast Food $45,000 to $2.3M 4% of monthly sales Globally recognized brand, extensive training and support, proven business model, marketing assistance, supply chain advantages Subway Fast Food $15,000 to $15k 8% of weekly sales Established brand, customizable menu, low start-up costs, comprehensive training, ongoing marketing support Supercuts Hair Salon $144k to $245k 6% of gross sales Established brand, ongoing training, local marketing support, group purchasing power, site selection guidance The franchise fees for McDonald's and Subway vary significantly, reflecting their differences in scale and international reach. McDonald's offers an established global brand, extensive training, and marketing support. Subway, on the other hand, emphasizes its customization options and lower initial investment. Supercuts, within the hair-cutting industry, focuses on local marketing and support, leveraging the power of a group purchasing network. The decision would depend on several factors, including financial capacity, risk tolerance, and personal interests. McDonald's offers a global brand and established systems, while Subway provides flexibility and a more accessible entry point. Supercuts targets a different

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