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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