Professional Documents
Culture Documents
Marketing
Management
Marketing mix:
Place
Session: 10
Date:
00/09/2014
Distributions Function
The major purpose of marketing is to
satisfy human needs by delivering
products of various types to buyers when
and where they want them and at a
reasonable cost.
The when and where is the function of
Distribution
Contacts,
Experience,
Specialization,
Scale of operation.
Distribution
P
R
O
D
U
C
E
R
DISTRIBUTION
C
O
N
S
U
M
E
R
Financing
Financing
Ordering
Ordering
Negotiation
Negotiation
Communication
Communication
Risk
Risk Taking
Taking
Physical
Physical
Distribution
Distribution
Payments
Payments
Transfer
Transfer
Information
Information
Distribution
Distribution Channel
Channel
Functions
Functions
Typical Channels of
Distribution
ANUFACTURE
R
ONSUME
R
GENT
ETAILER
HOLESALER
Business-to-Business Channels
Direct
Wholesaler
Agent
Business-to-Business Channel
Trends
Disintermediation
Conventional Distribution
Channel vs. Vertical Marketing
Systems Vertical
Manufacturer
Wholesaler
marketing
channel
Manufacturer
Wholesaler
Conventional
marketing
channel
Retailer
Retailer
Consumer
Consumer
Contractual
Contractual
Contractual
Contractual Agreement
Agreement Among
Among
Channel
Channel Members
Members
Administered
Administered
Leadership
Leadership is
is Assumed
Assumed by
by One
One or
or
aa Few
Few Dominant
Dominant Members
Members
Corporate
Corporate
Common
Common Ownership
Ownership at
at Different
Different
Levels
Levels of
of the
the Channel
Channel
Types
Types of
of Vertical
Vertical Marketing
Marketing Systems
Systems
Administered - strong
leadership
Lot size
Waiting time
Spatial convenience
Product variety
Service backup
Distribution
Distribution
Intensity
Intensity
Selective
Selective
Distribution
Distribution
Exclusive
Exclusive
Distribution
Distribution
Intensive
Intensive
Distribution
Distribution
Choosing a Distribution
System
Intensive Distribution
Producer
Seeks
Seeks to
to obtain
obtain
maximum
maximum
product
product
exposure
exposure at
at the
the
retail
retail level
level
Retailer
Retailer
Retailer
Retailer
Retailer
Retailer
Retailer
Retailer
Retailer
Retailer
Retailer
Retailer
Retailer
Retailer
Retailer
Selective
Selective Distribution
Distribution
Producer
Product
Product is
is sold
sold
in
in aa limited
limited
number
number of
of
outlets
outlets
Retailer
Retailer
Retailer
Retailer
Retailer
Retailer
Exclusive Distribution
Product
Product is
is sold
sold in
in
only
only one
one outlet
outlet in
in
aa given
given area
area
Producer
Retailer
Distribution
Distribution Channels
Channels &
& the
the Marketing
Marketing Mix
Mix
Reward
Reward or
or
Coercive
Coercive
Power
Power
Legitimate
Legitimate
Power
Power
Economic
Economic
Power
Power
Managing
Managing the
the Channel
Channel of
of Distribution
Distribution
Channel
Channel Leader
Leader Power
Power
Selecting
Selecting Channel
Channel Partners
Partners
Developing Distribution
Tactics
Physical Distribution
Inventory
Inventory
Control
Control
Order
OrderProcessing
Processing
Received
Received
Processed
Processed
Shipped
Shipped
When
Whento
toorder
order
How
much
to
How much toorder
order
Transportation
Rail, Water,
Trucks, Air,
Pipeline,
Internet
Physical
Distributio
nFunctions
Materials
MaterialsHandling
Handling
Moving
MovingProducts
ProductsInto,
Into,
Within,
Within,and
and
Out
Outof
ofWarehouses
Warehouses
Warehousing
Warehousing
Number
NumberNeeded
Needed
Where
Where
What
WhatType
Type
Transportation Modes
Rail
Rail
Cost-effective
Cost-effectivefor
forshipping
shippingbulk
bulkproducts,
products,
piggy-back,
fishyback,
birdyback.
piggy-back, fishyback, birdyback.
Water
Water
Low
Lowcost
costfor
forshipping
shippingbulky,
bulky,low-value,
low-value,
non
nonperishable
perishablegoods,
goods,slowest
slowestform.
form.
Truck
Truck
Most
Mostimportant
importantcarrier
carrierfor
forconsumer
consumer
goods,
goods,flexible.
flexible.
Air
Air
High
Highcost,
cost,ideal
idealwhen
whenspeed
speedis
isneeded
neededor
or
distant
distantmarkets
marketshave
haveto
tobe
bereached
reached
Pipeline
Pipeline
Carry
Carrypetroleum
petroleumbased
basedproducts,
products,
very
verylow
lowcost,
cost,requires
requireslittle
littleenergy.
energy.
Internet
Internet
Web
Websites
siteshave
haveproducts
productsavailable,
available,used
used
especially
especiallyfor
forservices.
services.
Channel Relationships
Cooperation
Conflict
Power
Coercive
Expert
Legitimate
Thank You