Distribution Flashcards
Distribution
The way in which consumers access and obtain the product or service
The channels through which these goods and services and distributed to consumers
Marketing (Distribution) Channel
The structure linking a group of individuals through which a product or service is made available to the consumer or industrial user.
How do channel members add value?
Intermediaries (channel members) offer producers greater efficiency in making goods available to target markets
They enable marketers to offer ‘utility’ for their customers
Through their contacts, experience, specialisation, and scale of operations, intermediaries can offer the firm more than it can achieve on its own.
How do channel members add value
Value added services
Facilitating value - Financing, training, information, after sales
Transactional value - Risk, marketing, Administration
Logistical value - Assortment, storage, sorting, bulk breaking and transportation
Types of intermediries
Wholesalers Franchisees Agents and brokers Retailer Distributors and dealers
What do retailers and wholesalers do?
Assemble a range of goods Provide storage and transportation Give advice and information Transfer title Provide an appropritae environment
What are the three channel strategies?
Intensive distribution
Selective distribution
Exclusive distribution
Intensive distribution
Maximum number of outlets Maximum availability Conveinece products High number of potential purchases High purchase frequency Low level of planning for purchases Low price
Selective distribution
Specialist retailer knowledge Shopping products Occasional purchase frequency Medium level of planning for purchases Medium prices
Exclusive distribution
Few outlets Speciality products low number of potential purchases Close customer relationships High price
Name 5 influencers of channel strategy
Organisational Market Product Buying Enviromnet Buying
Multi-channel marketing
Marketing through various channels.
Product - distributor - retailer - dealers - consumer segment 1/2
Channel strucutres
Independent manufacturers
Competition in channels
Horizontal
Intertype
Vertical
Channel system
VMS
Vertical marketing systems
