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Dirección Comercial > Chapter 8: Commercial Distribution method > Flashcards

Chapter 8: Commercial Distribution method Flashcards

1
Q

Key functions in commercial distribution

A
  • Information
  • Promotion
  • Contact
  • Matching
  • Negotiating
  • Physical distribution
  • Financing
  • Risk taking
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2
Q

Key functions in commercial distribution: Information

A

Gathering and distributing marketing research information

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3
Q

Key functions in commercial distribution: Promotion

A

Developing and spreading persuasive communications about an offer

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4
Q

Key functions in commercial distribution: Contact

A

Finding and communicating with prospective buyers

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5
Q

Key functions in commercial distribution: Matching

A

Shaping and fitting the offers to the buyers needs

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6
Q

Key functions in commercial distribution: Negotiating

A

Reaching an agreement on price and other terms

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7
Q

Key functions in commercial distribution: Physical distribution

A

Transporting and storing goods

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8
Q

Key functions in commercial distribution: Financing

A

Acquiring and using funds to cover costs of channel work

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9
Q

Key functions in commercial distribution: Risk taking

A

Assuming the risks of carrying on the channel work

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10
Q

Function of intermediaries in distribution

A

Reduction of number of contacts between the manufacturers and the consumers

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11
Q

Classification of intermediaries in distribution

A

Commercial: They assume ownership of the goods
- Wholesalers
- Retailers
Non-commercial: They connect sellers with buyers in exchange for a commission
- Brokers

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12
Q

Distribution channel concept

A

Route by which products go from the producer to the final consumer

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13
Q

Direct distribution channel

A

Manufacturer —> consumer

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14
Q

Indirect distribution channels

A
  • Manufacturer —> retailer —> consumer
  • Manufacturer —> wholesaler —> retailer —> consumer
  • Manufacturer —> agent —> wholesaler —> retailer —> consumer
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15
Q

Consumer journey distribution ways

A
  • Pure online: search and buy online
  • Ropo: search online and buy offline
  • Pure offline: search and buy offline
  • Showrooming: search offline and buy online
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16
Q

Coverage strategies for positioning in an area

A

Evaluating the various segments of the marketplace and decide which ones to cover

  • Intensive
  • Selective
  • Exclusive
17
Q

Coverage strategies: Intensive

A
  • Largest number of points of sale
  • More sales potential
  • Low involvement products and frequent purchase
18
Q

Coverage strategies: Selective

A
  • Selects best points of sale
  • Requires minimum commercial services
  • Reflective, differentiated, branded and mid priced product for purchase
19
Q

Coverage strategies: Exclusive

A
  • A single point of sale in each area
  • Limited number of intermediaries
  • Highly differentiated speciality products
20
Q

Ways of distribution channel organization

A
  • Vertical integration
  • Horizontal integration
  • Multi-channel system
21
Q

Distribution channel organization: vertical integration

A

Manufacturers, wholesalers and retailers unite so they have more power
Two options:
- Corporate
- Contractual

22
Q

Distribution channel organization: vertical integration (advantages)

A
  • Easy control
  • Less conflicts
  • More efficient
  • Economies of scale
23
Q

Distribution channel organization: horizontal integration

A
  • Two or plus companies which are at the same level

- Companies may share: means, financial, production capabilities…

24
Q

Distribution channel organization: multi-channel system

A
  • One company establishes several channels to attend different public objectives
    Advantages:
  • Less dependence on a single channel
  • Markets with different needs change coverage
25
Q

Physical distribution concept and stages

A

It consists of moving the products along the channels

  • Transport
  • Storage
  • Information management
26
Q

Physical distribution: Transport

A

Hauling and delivering goods to be distributed to the appropriate means

27
Q

Physical distribution: Storage

A

The warehouse is the depositry of the distributed products. Objective is to optimize the use of space destined to the storage (maximization) and of the handling operations of the stock (minimization)

28
Q

Physical distribution: Information management

A

Processes information through specific systems that allow it’s correct transmission

29
Q

Trade marketing concept and types

A

Strategic and operational vertical alliance between manufacturer and distributor to retain consumer’s choice

  • Co-marketing
  • Common work
  • Performance commitments

Dirección Comercial (8 decks)

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