Intermediary Purchasing from the Producer of the Product
Obtain Steps: The Obtain steps include all activities preceding the selling of the product. These activities include the costs of identifying potential suppliers and stocking the product.
2. Emotional: Segment customers according to the personal emotional needs of the segment.
B. Needs to avoid sources of anxiety
3. Economic limitations: Segment customers according to the limitations set by their economic interests and concerns
Savings of potential product vs. current solution: Savings on customer building block costs:
Capital costs – Segment saves capital costs
No. | SIC | Year | Note |
1 | 2000 | 1992 | In 1992, P&G announced it would eliminate 15-25% of its slower-moving SKUs over 18 months. It was reacting to retailers' threats to drop slow-moving P&G SKUs. |
2 | 2200 | 1993 | Milliken found its retailers left with large overstocks in items that had been ordered at the beginning of the season. It created a new ordering system allowing retailers to make mid-season corrections in a series of separate reorder stages. |
3 | 2389 | 1995 | While it can take up to a month to get in new Levi's, VF's jeans generally arrive within three days of an order. |
4 | 2834 | 2005 | For years, the relationship between drug wholesalers and manufacturers centered on "speculative buying." Under this system, wholesalers could purchase drugs ahead of manufacturers' price increases, then hoard the drugs until higher prices kicked in. Drug |
5 | 3711 | 2004 | Some of the nation's biggest auto retailing groups citing higher interest costs and thinner margins will no longer crowd their lots with slow selling cars and trucks to help auto makers avoid production cuts. |
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