#10 Place Flashcards
Marketing/ Distribution Channel
interdependent organisations involved in the process of making a product or service available for use or consumption by the consumer or business user
bridges the gap between the producer and the ultimate consumer by taking title, or assist in transferring title of the particular good or service, as itmoves from the producer to the consumer
Nature and Importance of Marketing Channels
Reduces number of channel transaction
Functions of the Marketing Channel
Pretty Cunts Must Not Pay for Risky Intercourse
o Promotion
o Contract
o Matching
o Negotiation
o Physical distribution
o Financing
o Risk taking
o Information
Level of Channels
number of levels of marketing intermediaries
e.g. zero-level or direct marketing channel
port services → port users
e.g. two-level marketing channel - tour packages
tour operators → general sales agent → travel agents → consumers (passenger)
Channel Behaviour and Organisation
most effective
* Each member is assigned tasks when it can do best.
* All members cooperate to attain overall channel goals and satisfy the target markets.
Channel conflict
Horizontal conflict
Vertical conflict
Types of Marketing Systems
Vertical Marketing System (VMS) :
Horizontal Marketing Systems
Hybrid Marketing Systems
Vertical Marketing System
Consists of producers, wholesalers, and retailers acting as a unified system.
Corporate
Common Ownership at Different Levels of the Channel
Contractual
Contractual Agreements Among Channel Members
Administered
Leadership is Assumed by One or a Few Dominant Members
Horizontal Marketing System
Two or More Companies at One Channel Level Join together to Follow a New Marketing Opportunity.
Example:
Banks in Grocery Stores
Hybrid Marketing System
A Single Firm Sets Up Two or More Marketing Channels to Reach One or More Customer Segments.
Example:
Retailers, Catalogs, and Sales Force
Channel Relationship
Physical flow
Title flow
Payment flow
Information flow
Promotion flow
Marketing Logistics and Supply Chain Management
planning, implementation and the control of the physical flows of material and final goods from points of origin to points of consumption to meet customer requirements at a profit
Provide a Targeted Level of Customer Service at the Least Cost.
Maximize Profits, Not Sales.
Major Functions of PD/Marketing Logistics
Order Processing
Warehousing
Inventory
Transportation
Costs
Role of Transportation in Physical Distribution
affects the price of goods
determines the condition of goods
affects time of delivery
largest cost component in Physical Distribution
Transportation Modes
Rail
Nation’s largest carrier, cost-effective
Truck
Flexible in routing & time schedules, efficient for short-hauls of high value goods
Flexible in routing & time schedules, efficient
Water
Low cost for shipping bulky, low-value,
non perishable goods, slowest form
Low cost for shipping bulky, low-value
Pipeline
Ship petroleum, natural gas, and chemicals
from sources to markets
Air
High cost, ideal when speed is needed or
distance markets have to be reached
