END-OF-CHAPTER SUPPORT
MARKETING DEBATE—Does It Matter Where You Sell?
Some marketers feel that the image of the particular channel in which they sell their products does not
matter—all that matters is that the right customers shop there and the product is displayed in the right
way. Others maintain that channel images—such as a retail store—can be critical and must be
consistent with the image of the product.
Take a position: Channel images do not really affect the brand images of the products they sell that
much versus channel images must be consistent with the brand image.
Pro: Buyers buy products or use services to meet a particular need or want. In the marketing-decision
making process, a consumer has a preformed image of the product or service based upon the
Con: The consumer buying process, the consumer “value proposition,” changes and reflects shifting
priorities based on the individual needs and wants of the consumer at the time of purchase. For key
products or services, consumers require, and even demand, different levels of service, attention, or
MARKETING DISCUSSION
Think of your favorite retailers. How have the retailers integrated channel systems? How would you
like to see channels integrated? Do you use multiple channels from the retailers? Why?
Student answers will differ depending upon their favorite retailers. However, all answers should
include the definition of channel integration:
Customers expect channel integration characterized by the following features:
1. The ability to order a product online and pick it up at a convenient retail location.
2. The ability to return an online ordered product to a nearby store of the retailer.
3. The right to receive discounts based on total online and off-line purchases
Marketing Excellence: Amazon.com
1. Why has Amazon.com succeeded online when so many other companies have failed?
2. Will the Kindle revolutionize the book industry? Why or why not?
3. What’s next for Amazon.com? Is cloud computing the right direction for the company? Where
else can it grow?
Marketing Excellence: Costco
1. What is unique about Costco’s channel management process? What components can other retailers
borrow or implement?
This process eliminates several steps such as using a distributor and other intermediaries,
eliminating costs associated with storage, additional freight, and handling.
At the warehouse, shipments are often taken directly to the floor, unwrapped, and left on the
Costco accepts only debit cards, cash, checks, and American Express—no credit cards.
Costco’s success has come from focusing on a handful of business practices: sell a limited
2. Where can Costco improve? Should it offer more products or advertise more? Why or why
not?