Distribution

Question 1

Purpose of distribution

Answer 1

• To engage customers
• To create customer value
• To build profitable customer relationships

Question 2

The 4 p’s of marketing

Answer 2

• Product
• Price
• Place
• Promotion

All intersect at target market.

Question 3

How financial service products are distributed

Answer 3

1) Product provider’s direct sales force

2) Independent

3) Tied agents
- Only sell/recommend

4) Branch sites

5) Direct sales

6) Point of sale

7) Websites/apps
- possibly using Roboadvice tools and chatbots

~ Active distribution
~ Passive distribution

Question 4

Channel selection

Answer 4

1) Need to know who your target market is and what the customer needs from the channel

2) The nature of the product
- Product complexity
- Product gross margin: Product needs to sustain the costs of the distribution channel

3) Business objectives
- Expected sales, costs and profitability of the channel
- The ability to reach the target market
- The need for control of the customer relationship and service experience`