Distribution+f2012

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Distribution+f2012

  1. 1. Distribution• Distribution channels• Role of intermediaries• Distribution decisions• Retailing
  2. 2. Distribution Channels• Manufacturer/service provider• Intermediaries – Wholesalers – Merchant wholesalers/industrial distributors – Agents/brokers – Logistics providers – Retailers
  3. 3. Channels for Consumer Products Direct Retailer Wholesaler Agent/Broker Channel Channel Channel Channel Producer Producer Producer Producer Agents or Brokers Wholesalers Wholesalers Retailers Retailers Retailers Consumers Consumers Consumers Consumers3
  4. 4. Channels for Business Products Direct Direct Industrial Agent/Broker Agent/Broker Channel Channel Distributor Channel Industrial Channel Producer Producer Producer Producer Producer Agents or Agents or Brokers Brokers Industrial Industrial Distributor Distributor Industrial Govt. Industrial Industrial Industrial User Buyer User User User3
  5. 5. Role of Intermediaries• Physical distribution – Transportation and storage (temporal and spatial discrepancies) – Breaking bulk (discrepancy of quantity) – Accumulating bulk (discrepancy of quantity) – Creating assortment (discrepancy of assortment) – Specialization – Transaction reduction (transactional functions) • Contacting, negotiating, transporting, financing, etc.
  6. 6. Role of Intermediaries1
  7. 7. Role of Intermediaries• Communication – Marketing research – Selling role for manufacturer/service provider • IMC • Personal selling • Point-of-Sales (POS) • After-sale service – Buying role for customers • Likes/dislikes • Returns
  8. 8. Distribution Decisions• Channel(s) – Structure – Traditional/alternative• Intensity – Intensive – Selective – Exclusive• Control – Partnering – Vertical integration – Conflict
  9. 9. Distribution Decisions• Considerations – Customer needs • Convenience • Speed • Assortment • Add-on services – Product characteristics • Perishability, bulk – Company characteristics • Size, financial resources • Core competencies, reputation – Intermediary characteristics – Competitor characteristics • Duplicate • Avoid
  10. 10. Distribution Decisions• Logistics – Supply chain management – Materials management – Order processing/fulfillment – Inventory management – Warehousing – Transportation – Enterprise Resource Planning (ERP)

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