I agree. Because online marketing shops offer products at a lower price due to virtual place, they do not need to pay rent and save more in employee wages. And many customers want to buy products at a lower price and even the online products could be more convenience because they don't need to go out but the products would deliver to their home.
And they could spent more money for promotion because of low cost.
2) Disintermediation will ultimately lead to channel conflict. Discuss.
The disintermediation is to describe the sell product by removing the middleman. It is used to decribed the internet shops that sell products to customers directly instand traditional retailers.
This would not lead to channel conflict due to some reasons. The first one is people believe physical evidence more than virtual products; the second is most people like shopping, they like the feeling of buying products by walking a lot of shops; third one is people need communication.
http://www.webopedia.com/TERM/D/disintermediation.html
3) What are the five elements of promotion and what are some examples of combining online/offline promotion?
The five elements of promotion are:
- Advertising
-online: website advertising
-offline: leaflet
- Sales Promotion
-online: direct e-mails to customers
-offline: door to door promotion
- Personal Selling
-online: online shops
-offline: physical shops
- Public Relations
-online: news public online to show the companies' images
-offline: how public tools the companies used such as newspapers and TV programs
- Direct Marketing
-online: e-mail catalog s
-offline: telephone marketing
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