12. Marketing Channels and Wholesaling
Vignette: Dell has revolutionized the way computers are sold. You have leaned that using the direct channel of the Internet is advantageous to Dell.
Featured URL: http://www.dell.ca
Over the Web Easy
Although initially there has been resistance to purchasing goods over the Web, as the entire process of carrying out a transaction over the internet has become easier and more convenient, more and more customers are responding to direct purchasing. There are few products that cannot be ordered on the Internet and paid for in one easy transaction.
Gateway, like Dell uses the Web as their primary marketing channel. Selling computers directly to customers is riskier for companies like Compaq or IBM.
1. After looking over the Computer Buying articles in the Resource Section, decide on a computer to buy.
2. Visit the Computer Companies given in the resource sections and shop for your computer.
3. Compare the way Dell and Gateway market their products on the Web to the way Compaq and Dell sell computers.
4. Tell which company you have decided to buy from and give your rationale for this choice.
5. Describe the system you have chosen, the various components and the final price you will be paying including delivery and taxes.
Computer Companies
Dell - http://www.dell.ca
Gateway - http://www.gateway.com/index.shtml
Compaq - http://www.compaq.com/
IBM - http://www.ibm.com/
Buying a Computer
How to Buy
a Computer - by Jim Bray at Technofile
Tips on Buying a Computer
- Concord College Computer Services
Buying
a Personal Computer - About.com on buying computers - Mac or PC
ZDNet - Reviews and other Information
about buying Computers
CNet
- Product reviews, price comparisons and more about computers
BizRate.com - best prices for
buying a computer
Channel Marketers
Jack Nadel, Inc. - http://www.nadel.com/channel.htm
GDM - http://www.gdmarkets.com/marketing.html
Channel Marketing Corporation - http://www.cmcus.com/Default.htm
Gage - http://www.gage.com/partners/channel.html
Channel Strategies - http://www.channelstrategies.com/
Channel Marketing, Inc - http://www.channelstrategies.com/
Wholesalers
Google's Wholesale Directory - http://directory.google.com/Top/Business/Industries/Wholesale/
Distribution
Cold Cut Distribution for Comics - http://www.coldcut.com/
IDN (Independent Distribution Network) Music - http://www.idnmusic.com/index.html
Instructors: Optional Activities
As with all of the Web exercises, the exercise for Chapter Twelve can be used as suggested or certain parts can be adapted to better suit your student population. You will want to estimate how much time is required to complete any part or all of the parts. It will be helpful to give students a suggested time frame for completing their assignments. It will also help to determine how much credit might be given for the assignment.
1. Channel Surfing
Visit the sites in the Resource Section that display information and
claim expertise on channel marketing.
What are the specializations of these organizations and in what way
do they facilitate marketing of products or services?
2. Get an Eyeful
Using the Google Directory to buying wholesale, locate a company on the web where you can buy false eyelashes wholesale. What is the best source given as far as price is concerned?
Next, find a supplier of protective eyewear for medical professionals. What are they called and how much are they?
Now, find a king sized eye model. What size is it and how much does it cost?
3. Distribution
Describe the differences in how Cold Cut Comics deals with retailers, with comic book fans and with publishers of comic books.
Check out the IDN site for distributing Independent music. How does this site work. If you had a band, what process would you go through to get your band's CD and a sample of your music on this site?
Listen to a few songs in your favourite category - what is the name of the group? What is the name of the song? From hearing the song, would you buy the CD?