WEEK 9 Flashcards
What is ‘place’
How to get the right product in the right quantities to your
target customers?
What is marketing channels
A marketing channel is the structure linking a group of individuals or organisations through which a product or service is made available to the consumer or industrial user
Distribution Channels for Consumer Goods
Producer –> agent –> wholesaler –> Retailer –> consumer
What are the types of Intermediary
- Agents and Brokers
- Franchisee’s
- Wholesalers
- Retailers
- Distributors and dealers
What effect do intermediaries have?
- Physically move goods
- Add margin to the price of goods
- Perform functions to earn margins
Functions of distribution channels
Information
Risk Taking
Financing
Physical distribution
Negotiating
matching
contact
promotion
Information
What is an intensive distribution channel?
Distribution through every reasonable outlet in the market
- Maximum number of outlets
- Maximum availability
- Convenience products
- High number of potential purchasers
- High purchase frequency
- Low level of planning for purchases
- Low price
Eg groceries, magazines,
household products
What is a selective distribution channel?
Distribution through multiple, but not all reasonable outlets in the market
- Number of outlets varies
- Specialist retailer knowledge
- Shopping products
- Medium number of potential purchasers
- Occasional purchase frequency
- Medium level of planning for purchases
- Medium price
Eg furniture, clothing,
watches
What is a exclusive distribution channel?
Distribution through a single wholesaling intermediary and/or retailer
- Few outlets
- Close retailer/consumer relationship
- Specialty products
- Low number of potential purchasers
- Low purchase frequency
- High level of planning for purchases
- High price
Eg cars, designer clothes
What is the physical distribution system
Physical distribution system
customer service inventory control Transportation
order processing warehousing Material handling
