1 / 20

Distribution Channels and Strategies in Marketing

Explore the concept of distribution channels in marketing, from producers to consumers through different intermediaries. Learn about the importance of distribution activities in the marketing mix and various distribution strategies.

aschmitz
Download Presentation

Distribution Channels and Strategies in Marketing

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Unit 7: Distribution Mrs. Brink Marketing Principles

  2. What is distribution? • What do you think distribution is all about?

  3. Reading Activity • http://www.saylor.org/site/wp-content/uploads/2013/02/BUS203-PoM-Ch8.pdf • Pages 1-9 STOP AFTER BROKERS SECTION • 1. Why are marketing channel decisions as important as pricing and product feature decisions? • 2. Why do channel partners rely on each other to sell their products and services? • 3. How do companies add value to products via their marketing channels? • When you are done…. • Twitter Vocabulary Activity Chapter 13

  4. The 4 P’s • Product • Price • Place • Promotion The Seven Functions • Product Service Management • Market Information Management • Financing • Distribution • Pricing • Promotions • Selling

  5. The Importance of Distribution Activities • Distribution as an economic concept • Important for free enterprise • Influences supply and demand • PLACE UTILITY • Distribution is also an element of our Marketing Mix which is implemented throughout all marketing decisions!

  6. What is a Channel of Distribution? • The path a product takes from the producer to the final user. • All products have a channel!

  7. Channels of Distribution • Producer • Wholesaler • Agent • Retailer • Consumer/Industrial User Channel Members: help to move products through the path

  8. The Need for Distribution Channels • Adjusting differences between producers and consumers • Differences in quantity: must be able to adjust for large and small quantities • Differences in assortment: must get products from a number of sources • Differences in location: must get products to convenient locations • Differences in timing of production and consumption: different times of year require different distribution

  9. Industrial Users • Market consisting of all customers who make purchases for business purposes; also called the business-to-business market

  10. Consumers • Those who buy and actually use the product.

  11. Intermediaries • Intermediaries are channel members that help move products from the producer or manufacturer to the final user. • “Middlemen”

  12. Types of Intermediaries • Merchant Intermediaries • Wholesalers • Retailers • Agent Intermediaries • Independent Manufacturer’s Agents • Brokers

  13. Planning and Managing Channels of Distribution • Channel participants • Channel members • Direct channel • Indirect channel Chapter 13

  14. Distribution StrategiesDirect vs. Indirect Distribution • Direct - Goods or services are sold from the producer directly to the final user – no intermediaries are involved. • Indirect - Goods or services are sold through the use of intermediaries.

  15. Distribution Intensity • Intensive • Complete market coverage • All suitable outlets • Selective • Limited number of outlets • More control • Exclusive • Protected Territories • Franchises

  16. 5 Channels for Consumer Products • 1 : Direct sales from manufacturer to consumer – Avon • 2: Manufacturer to Retailer to Consumer • 3: Manufacturer to Wholesaler to Retailer to Consumer • 4: Manufacturer to Agent to Wholesaler to Retailer to Consumer – Small retailers, “Mom and Pop” type stores • 5: Manufacturer to Agent to Retailer to Consumer – Cookware, Meat, Cosmetics, Supermarkets

  17. Multiple Channels of Distribution Sometimes businesses opt to use a mixture of distribution channels Direct + Indirect=Multiple Channels Chapter 13

  18. Wholesalers & Retailers • Wholesalers • Buy large quantities of goods from manufacturers, store the goods, and resell them to other businesses. • Retailers • Sell goods to the ultimate consumer through their own stores.

  19. Who Needs Wholesaling? • Benefits of wholesaling • Specialize in storage • Cheaper • Purchases in efficient quantities • Wholesaling activities • Buying, selling, transporting, storing and financing • Wholesale clubs—SAM’S Club

  20. Types of Retailers Product mix • Limited-line retailers • Mixed merchandise retailers • Superstores • Service retailers Location • Brick and Mortar • Convenience stores • Shopping centers • Stand-alone stores • Non-store retailing • Online

More Related