Distribution Flashcards
upstream partners
raw materials, components, finances
downstream partners
wholesales and retailers
marketing channel
a set of interdependant organisations involved in the process of making a product or sevice availible to users
why are marketing intermediaries used
- intermediaries are more efficient in getting products to the targett market
- they facilitate mass distribution
maketing channel functions
- infomation
- promotion
- contact
- matching
- negotiation
- physical distribution
- financing
- risk taking
information function
gathering and distributing maketing research and infoormation that a company needs for planning and facilitating exchange
promotion function
developing and communicating info about a product or service
contact function
finding and communicating with prospective buyers
matching functioon
shaping and fitting the offer oo the buyer’s needs in manufacturing, importing, assembling and packaging
negotiation functiooon
reaching an agreementt on prrice and oother terms of the offer so that ownership or possesion can be transferred
vertical marrketing networrks
a distribution channel in which producers, wholesalers, and retailers act as a unified network
why are verticle marketing networks used
to control channel behaviou and manage channel conflict
different types of verticle maketing nettworks
- corporate
- contractual
- administered
coperate VMN
integrrrates sucessive stages of production/distribution under single ownership
contractual VMN
independant firms at different levels of production and distribution who join together through contracts to obtain more economies of scale than they could on their own
Administered VMN
coordinates successive stages of production and distribution through the size and power of one of the partiess
horizontal marketing network
two or moe companies at oone level join together to follow a new marketing opportunity
multtichannel network
a single firm sets up two or more marketing channels to reach one or more marketing segments
logistics
the strategic management of thee flow of materials and associated information between suppliers and customers with the aim of maximizing customer value in the long term at the lowest possible cost
how does logistics add value
- product deisng, manufacturing and orderring
- warehousing
- transport
- information
why is inventorry needed
- prorduction economies
- seasonality
- contingencies
- transport savings
channel design
designing effective marrketng channels by analysis of customer needs, setting channel objectives, identifying major channel alternatives and evaluating them
how to identify major channel alterrnatives
- types of intermedaries
2. number of intemediaries
how to evaluate major channel alternatives
- economic criteria
- control criteria
- adaptive criteria
- intenational marketing channels
economic critteria
- levels of sales and costs
2. estimate the cost of selling different volumes through each channel
different channel management decisiomns
- selecting channel members
- motivating channel members
- evaluating channel membes
- rrisk
- power
- conflict
