Week 10 notes - place (distribution) Flashcards
Define marketing logistics
Managing flow & storage of materials from point of origin to point of consumption meeting customer requirements.
What are the major logistic functions
Warehousing, Inventory management, transportation, logistics info management.
Define distribution channel.
Set of interdependent organisations involved in the process of making a product or service available to users in they form they want them.
What are the key functions of the marketing channel (that add value to production).
Info gathering. Product promotion. Contact buyers. Price negotiation Transportation Financing Risk sharing
List the types of intermediaries used in distribution channels.
Retailers. Classified by: amt of service, product lines sole, organisation type.
Wholesalers - merchant,
agent, broker - sells on behalf / brings parties together. Commission based no title.
Distributor - same as wholesaler but will carry product lines from different sometimes competing orgs.
Why is location important to manufactures, retailers, wholesalers?
Provides buyers access to products, sellers access to target markets.
What’s the role of store design & shelf position?
Emphasises products.
Leads customers through the store.
Keeps customers in the store.
Products at eye level are more prominent and likely to be successful.
Types of retailers
Amount of service (full/self/limited)
Product line sold
Organisation type`
Types of wholesalers
Merchant - independant, has title
Agent - represents, not title
Broker - brings buyers/sellers together, not title
Different types of marketing channels
Conventional - loose relationship, independent companies doing their bit
Vertical- parties work as a unified system
Horizontal - parties doing the same role work together to produce advantage or opportunity
Define retailers
Parties performing all activities involved in selling products directly to consunmers.
