Chapter Preview keting mix tool—distribution. ter explores the nature of marketing channels and the marketer’s chan-
12 Chapter Preview keting mix tool—distribution. ter explores the nature of marketing channels and the marketer’s chan-
Marketing Channels
Delivering Customer Value
We now arrive at the third mar-
be good at partner relationship management. The first part of this chap-
Firms rarely work alone in creating value for customers and building nel design and management decisions. We then examine physical profitable customer relationships. Instead, most are only a single link in
distribution—or logistics—an area that is growing dramatically in impor-
a larger supply chain and marketing channel. As such, an individual tance and sophistication. In the next chapter, we’ll look more closely at firm’s success depends not only on how well it performs but also on how
two major channel intermediaries: retailers and wholesalers. well its entire marketing channel competes with competitors’ channels.
We start by looking at a company whose groundbreaking, customer- To be good at customer relationship management, a company must also
centered distribution strategy took it to the top of its industry.
Enterprise: Leaving Car Rental Competitors in the Rear View Mirror
Q try harder!” But if you said Hertz or Avis, you’re was working at a St. Louis auto dealership, and customers often
uick, which rental car company is number one? who simply wanted a different car for a short trip or a special Chances are good that you said Hertz. Okay, who’s
occasion.
number two? That must be Avis, you say. After all, It all started more than half a century ago when Enterprise for years Avis’s advertising said, “We’re #2, so we
founder Jack Taylor discovered an unmet customer need. He
about to be surprised. By any measure—most revenues, employ- asked him where they could get a replacement car when theirs ees, transactions, or number of vehicles—the number-one rental-
was in the shop for repairs or body work. To meet this need, car company in the world is Enterprise Holdings, which owns
Taylor opened a car-leasing business. But rather than compete and operates the Enterprise Rent-A-Car, Alamo Rent A Car, and
head-on with the likes of Hertz and Avis serving travelers at air- National Car Rental brands. Even more, this is no recent devel-
ports, Taylor located his rental offices in center-city and neigh- opment. Enterprise left number-two Hertz in its rearview mirror
borhood areas, closer to his target customers. These locations in the late 1990s and has never looked back.
also gave Taylor a cost advantage: Property rents were lower, and What may have fooled you is that the Hertz brand was for
he didn’t have to pay airport taxes and fees.
a long time number one in airport car rentals. However, with all This groundbreaking distribution strategy worked, and the of its combined brands and markets, Enterprise Holdings now
business grew quickly. As the Taylor family opened multiple captures 53 percent of the total rental car market with Hertz a
locations in St. Louis and other cities, they renamed the business
Enterprise Rent-A-Car after the U.S. Navy aircraft carrier on privately owned Enterprise is much more profitable as well.
distant second at 16 percent. 1 What’s more, by all estimates, the
which Jack Taylor had served as a naval aviator. Enterprise con- How did Enterprise become such a powerful industry
tinued to focus stead-
leader? The company might argue that it was through better
fastly on what it called
Thanks to an industry-
prices or better marketing. But what contributed most to Enter-
the “home city” market,
prise taking the lead was an industry-changing, customer-
primarily serving cus-
changing, customer-driven
driven distribution strategy. While competitors such as Hertz
tomers who’d been in
distribution strategy,
and Avis focused on serving travelers at airports, Enterprise
wrecks or whose cars
Enterprise left number-two
developed a new distribution doorway to a large and un-
were being serviced. En-
Hertz in its rearview mirror
tapped segment. It opened off-airport, neighborhood locations
terprise branch man-
more than a decade ago
that provided short-term car-replacement rentals for people
agers developed strong
and has never looked back.
whose cars were wrecked, stolen, or being serviced or for people
relationships with local
Parts
» | Marketing: Creating and Capturing Customer Value 3
» | Marketing: Creating and Capturing Customer Value 11
» | Marketing: Creating and Capturing Customer Value 13
» | Marketing: Creating and Capturing Customer Value 25
» | Marketing: Creating and Capturing Customer Value 29
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 37
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 41
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 43
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 51
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 55
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 57
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 63
» | Analyzing the Marketing Environment 65
» | Analyzing the Marketing Environment 71
» | Analyzing the Marketing Environment 73
» | Analyzing the Marketing Environment 77
» | Analyzing the Marketing Environment 79
» | Analyzing the Marketing Environment 81
» | Analyzing the Marketing Environment 85
» | Analyzing the Marketing Environment 87
» | Analyzing the Marketing Environment 89
» | Managing Marketing Information to Gain Customer Insights 97
» | Managing Marketing Information to Gain Customer Insights 99
» | Managing Marketing Information to Gain Customer Insights 103
» | Managing Marketing Information to Gain Customer Insights 109
» | Managing Marketing Information to Gain Customer Insights 111
» | Managing Marketing Information to Gain Customer Insights 113
» | Managing Marketing Information to Gain Customer Insights 115
» | Managing Marketing Information to Gain Customer Insights 127
» | Managing Marketing Information to Gain Customer Insights 131
» | Consumer Markets and Consumer Buyer Behavior 133
» | Consumer Markets and Consumer Buyer Behavior 137
» | Consumer Markets and Consumer Buyer Behavior 141
» | Consumer Markets and Consumer Buyer Behavior 143
» | Consumer Markets and Consumer Buyer Behavior 159
» | Consumer Markets and Consumer Buyer Behavior 163
» | Business Markets and Business Buyer Behavior 165
» | Business Markets and Business Buyer Behavior 175
» | Business Markets and Business Buyer Behavior 179
» What is Eaton’s value proposition?
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 189
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 193
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 197
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 203
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 205
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 207
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 209
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 211
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 213
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 219
» | Products, Services, and Brands: Building Customer Value 223
» | Products, Services, and Brands: Building Customer Value 225
» | Products, Services, and Brands: Building Customer Value 229
» | Products, Services, and Brands: Building Customer Value 237
» | Products, Services, and Brands: Building Customer Value 245
» | Products, Services, and Brands: Building Customer Value 247
» | Products, Services, and Brands: Building Customer Value 249
» | Products, Services, and Brands: Building Customer Value 251
» | Products, Services, and Brands: Building Customer Value 257
» | New Product Development and Product Life-Cycle Strategies 259
» | New Product Development and Product Life-Cycle Strategies 271
» | New Product Development and Product Life-Cycle Strategies 273
» | New Product Development and Product Life-Cycle Strategies 279
» | New Product Development and Product Life-Cycle Strategies 281
» | Pricing: Understanding and Capturing Customer Value 289
» | Pricing: Understanding and Capturing Customer Value 291
» | Pricing: Understanding and Capturing Customer Value 295
» | Pricing: Understanding and Capturing Customer Value 299
» | Pricing: Understanding and Capturing Customer Value 305
» | Pricing: Understanding and Capturing Customer Value 307
» | Marketing Channels: Delivering Customer Value 339
» | Marketing Channels: Delivering Customer Value 347
» | Marketing Channels: Delivering Customer Value 351
» | Marketing Channels: Delivering Customer Value 367
» | Retailing and Wholesaling 373
» | Retailing and Wholesaling 377
» | Retailing and Wholesaling 379
» | Retailing and Wholesaling 393
» | Retailing and Wholesaling 395
» | Retailing and Wholesaling 397
» | Retailing and Wholesaling 401
» | Retailing and Wholesaling 405
» | Communicating Customer Value: Integrated Marketing Communications Strategy 407
» | Communicating Customer Value: Integrated Marketing Communications Strategy 411
» | Communicating Customer Value: Integrated Marketing Communications Strategy 413
» | Communicating Customer Value: Integrated Marketing Communications Strategy 415
» | Communicating Customer Value: Integrated Marketing Communications Strategy 429
» | Communicating Customer Value: Integrated Marketing Communications Strategy 433
» | Advertising and Public Relations 435
» | Advertising and Public Relations 439
» | Advertising and Public Relations 441
» | Advertising and Public Relations 443
» | Advertising and Public Relations 445
» | Advertising and Public Relations 447
» | Advertising and Public Relations 449
» | Advertising and Public Relations 453
» | Personal Selling and Sales Promotion 463
» | Personal Selling and Sales Promotion 469
» | Personal Selling and Sales Promotion 471
» | Personal Selling and Sales Promotion 481
» How is the sales force at Nestlé Waters structured? outsells its top competitors.
» | Direct and Online Marketing: Building Direct Customer Relationships 495
» | Direct and Online Marketing: Building Direct Customer Relationships 499
» | Direct and Online Marketing: Building Direct Customer Relationships 507
» | Direct and Online Marketing: Building Direct Customer Relationships 509
» | Direct and Online Marketing: Building Direct Customer Relationships 515
» | Direct and Online Marketing: Building Direct Customer Relationships 525
» | Creating Competitive Advantage 527
» | Creating Competitive Advantage 529
» | Creating Competitive Advantage 537
» | Creating Competitive Advantage 549
» | The Global Marketplace 551
» | The Global Marketplace 553
» | The Global Marketplace 561
» | The Global Marketplace 573
» | Sustainable Marketing: Social Responsibility and Ethics 581
» | Sustainable Marketing: Social Responsibility and Ethics 583
» | Sustainable Marketing: Social Responsibility and Ethics 587
» | Sustainable Marketing: Social Responsibility and Ethics 595
» | Sustainable Marketing: Social Responsibility and Ethics 603
» | Sustainable Marketing: Social Responsibility and Ethics 605
» | Marketing by the Numbers A21
» | Marketing by the Numbers A27
Show more