Distribution Flashcards
Purpose of distribution
- To engage customers
- To create customer value
- To build profitable customer relationships
The 4 pβs of marketing
- Product
- Price
- Place
- Promotion
All intersect at target market.
How financial service products are distributed
1) Product providerβs 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
Channel selection
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`