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Maximizing Distribution Channels for Cultural Products: Strategies and Impact

Explore the significance of distribution channels, physical distribution, and commercial location in distributing cultural products. Learn about distribution strategies, different types of channels, and the influence of commercial location on consumer demand.

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Maximizing Distribution Channels for Cultural Products: Strategies and Impact

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  1. MQM 328E & The Arts Chapter 7 The Place Variable

  2. Three Elements to the Place Variable • Distribution Channels • Physical Distribution • Commercial Location

  3. Cultural Products • Consumers form of consumption determines the product’s mode of distribution • Collective consumption • Individual consumption

  4. Possession • Possessing the technical dimensions of a product give the consumer greater flexibility

  5. Distribution • Use of agents or intermediaries • Distribution agreements are both defining and limiting • Sell directly to end consumer?

  6. Functions of an Intermediary • Reduce contacts necessary for success • Aid in handling logistics • Help a company adjust the quantity and variety of a product

  7. Types of Distribution Channels • Direct • Short • Long • Ultra Long

  8. Distribution Strategies • Intensive • Maximum distribution of a product to all • Selective • Selecting retailers according to specific criteria • Exclusive • Carefully choose distributors

  9. Distribution Strategies • Push • Offering higher profit margins to your retailers, get them to push product • Pull • Massive investments in advertising, get your customers to demand product

  10. Physical Distribution • Where will the product be sold? • How will it get there? • Shipping, warehousing, inventory management, order processing, merchandise handling and packaging

  11. Commercial Location • Trading area • Primary, includes customers from the main population served by the sales unit (i.e. the densest population) • Secondary—here sales hover between 20% and 40% of the sales volume • Tertiary– a residual zone, holding 10% to 20% of the clientele

  12. Trading Area Usefulness • Estimate demand in $ • Estimate future demand • Decide on long term, short term and medium term markets • Measure the impact of competition • Better understand the socio-economic profile of the area

  13. Trading Area Configuration • The Product • The Company’s Marketing Strategies • Consumer’s Perceptions

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