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Unit One Building Business Relation In this unit, we will learn The industry and the market different kinds of business relation from marketing perspective how to build the relation The Industry: The Problems Too many banks Too much competition Limited number of service counters and outlets Limited business hours Increased costs Hard to retain old customers Hard to attract new customers The Industry: The Need To extend business hours To provide more convenience to customers The sulutions: -ATMs -Other self-service banking terminals - Phone banking - Internet banking, etc Business relation from Marketing Perspective 4 Ps of Marketing Products Price Promotion Place (Distribution Channels) In Unit One, we’ll take a look at how a product is distributed Distribution Channelsfor Business Market Direct selling Manufacturer---------------End Users Advantages(to manufacturer): No intermediate cost, high profit Disadvantages(To manufacturer) Hard to be good at both marketing and manufacturing Examples: Dell, Olivetti (IT) Distribution Channelsfor Business Market Indirect Selling or Selling through Intermediaries Manufacturer ---Distributors-----End Users Advantages(to manufacturer): Focus on manufacturing Good use of the agent’s experience and resources Disadvantages(To manufacturer) intermediate cost, lower profit Examples: IBM, Microsoft (IT) Volkswagen (car dealers) Distribution Channelsfor Business Market Selling through Intermediaries Two choices: Exclusive agent(Sole agent) Non-exclusive agents Selling through Exclusive Agent The only agent appointed for a given territory Limited to the selling of the appointed products not allowed to sell other competing products must achieve higher given sales target more benefits (profit margins ) but nore obligations Selling through Exclusive Agent To Vendors: High expectation The agent is highly motivated as it offers more profit High ris
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