lecture 7 distribution

8/13/2019 Lecture 7 Distribution

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Distribution

Lecture 7


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Distribution channels / members

Distribution planning

Physical distribution


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Channel of distribution

is the path a product takes from

its producer or manufacturer to

final user (an industrial user /

consumer)


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Intermediaries (involved in sales

transactions, move products

from the manufacturer to the

final user)

Wholesalers (rack jobbers, drop

shippers)

Retailers (brick-and-mortar

retailers, e-tailers)


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Direct distribution

1. Selling products at the production site.

2. Having a sales force call on consumers

at home.

3. Using catalogs or ads to generate sales.

4. Having sales representatives callconsumers on the telephone (telemarketing

5. Using the Internet to make online sales


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Distribution planning involves decisions

about a productsphysical

movement and transfer of ownership

from producer to consumer.

multiple channels

control versus costs intensity of distribution desired

involvement in e-commerce


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Distribution intensity (how widely

a product will be distributed)

Three levels of distribution

intensity: exclusive, selective,

and intensive.


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Exclusive distribution involvesprotected territories for distribution ofa product in a given geographicarea.

Prestige, image, channel control,and a high profit margin for both themanufacturer and intermediaries

Integrated distribution - themanufacturer acts as wholesaler andretailer for its own products.


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Selective distribution means that a

limited number of outlets in a given

geographic area are used to sell the

product. The goal is to select channel

members that can maintain the

image of the product and are good

credit risks, aggressive marketers,and good inventory planners.


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Intensive distribution - the

use of all suitable outlets to sell

a product.

The objective is complete

market coverage, and the

ultimate goal is to sell to as

many customers as possible,wherever they choose to shop.


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Physical distribution (logistics)comprises all the activities that helpto ensure that the right amount ofproduct is delivered to the right placeat the right time.

order processing

transporting

storing stock handling

inventory control


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Transportation is the marketing

function of moving a product from

the place where it is made to the

place where it is sold. Trucking

Railroads

Marine shipping Papelines

Air Cargo Services


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Literature

Kotler, Philip. Principles of marketing

/ Philip Kotler2nd European ed.:

Prentice Hall Europe, 1999. (pp.

895-936)

Blythe, Jim Essentials of marketing /

Jim Blythe- 3rd ed. Harlow :

Financial Times Prentice Hall, 2005.

(pp. 189-212)
http://catalogue.brookes.ac.uk/TalisPrism/doOpenURLSearch.do?sid=Prism:Talis&pid=Key%3A913792%3BArtifactType%3ATalisWork%3BsearchLocation%3Atalislmshttp://catalogue.brookes.ac.uk/TalisPrism/doOpenURLSearch.do?sid=Prism:Talis&pid=Key%3A913792%3BArtifactType%3ATalisWork%3BsearchLocation%3Atalislmshttp://catalogue.brookes.ac.uk/TalisPrism/doOpenURLSearch.do?sid=Prism:Talis&pid=Key%3A913792%3BArtifactType%3ATalisWork%3BsearchLocation%3Atalislmshttp://catalogue.brookes.ac.uk/TalisPrism/doOpenURLSearch.do?sid=Prism:Talis&pid=Key%3A913792%3BArtifactType%3ATalisWork%3BsearchLocation%3Atalislms

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