The Advisor Project a Study of Industrial Marketing Budgeting Non Technical
The Advisor Project a Study of Industrial Marketing Budgeting Non Technical
Gary Louis Lilien
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A Distribution Channel Norms In line with our objectives of modeling the entire market mix, we hypothesize that the selection of a channel strategy is influenced by product and market factors. In particular, we model the decision about whether a captive (Internal) or independent (external) means of distribu- tion should be used. The key variables affecting this decision are: - size of the firm - size of an average order - product complexity - stage in the life cycle - fraction of product sales ...produced to order - frequency of purchase decision - number of customers Our analysis provides norms on the likelihood of a captive versus an independent channel of distribution. 10 3. Using the results 3. 1. Computerized guidelines model The ADVISOR 2 results can be applied to specific products very easily by the use of a computerized guidelines model. A set of 19 questions are answered and provide the necessary input for the models. The program produces the typical level and common range of the following quantities: - advertising - personal/impersonal advertising - marketing - advertising change - personal/ impersonal change - marketing change - distribution channels Table A gives one line of a typical PAR report.
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