Why do you think GE is not selling their appliances directly? Consider issues of physical distribution and channel conflict.
I think that GE is not selling appliances because it does not have much of an incremental opportunity. While GE has successfully cut costs and invested in higher-price models, "at this point even the premium end of the business is limited." Marketing is defined as an exchange process. In relation to distribution, exchange poses two problems. First, goods must be moved to a central location from the warehouses of producers who make heterogeneous goods and who are geographically widespread. Second, the goods that are accumulated from diversified sources should represent a desired assortment from the viewpoint of customers. These two problems can be solved by the process of sorting, which combines concentration (i.e., bringing the goods from different sources to a central location) and dispersion (i.e., picking an assortment of goods from different points of concentration).
Two basic questions need to be answered here. Who should perform the concentration and dispersion tasks the manufacturer or intermediaries? Which intermediary should the manufacturer select to bring goods close to the customer? These questions are central to distribution strategies.
How might market coverage intensity affect GE's strategy for their web site?The globalization of the world economy combined with the development of the new technologies of information and communication has considerably increased the complexity of markets. For GE to remain competitive in the environment of the twenty-first century, GE is going to have to take it one step further today and move from a customer-oriented to a market-oriented culture. In today's turbulent environment, market orientation is too important to be left to the marketing department alone. In this new context, market-driven management is more important than ever but the marketing department as a separate...