MKTG1501 Lecture Notes - Lecture 11: Relative Price, Microcomputer, Harvey Norman
MKTG1501 Placement – distribution and retailing
*Placement
- putting the right product in right timing and right place in correct quantity to
the customers
- factors influence the placement decisions: speed, dependability (delivery on
time), capability (ability to handle different kinds of product), cost, availability
(geographic area served), and flexibility
*Channel levels and channel conflict
- when each of the channel processes, there is a reduction in risk
*Channel organisation
1) conventional network: manufacturer- wholesaler- retailer- consumer
2) vertical network: where manufacturer, wholesaler and retailer all work in
conjunction and then deliver to the consumers
- vertical example: Audi acts as the manufacturer and retailer
- the degree of direct control is usually greater in the beginning and lesser at
the end
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Document Summary
Putting the right product in right timing and right place in correct quantity to the customers. Factors influence the placement decisions: speed, dependability (delivery on time), capability (ability to handle different kinds of product), cost, availability (geographic area served), and flexibility. When each of the channel processes, there is a reduction in risk. *channel organisation: conventional network: manufacturer- wholesaler- retailer- consumer, vertical network: where manufacturer, wholesaler and retailer all work in conjunction and then deliver to the consumers. Vertical example: audi acts as the manufacturer and retailer. The degree of direct control is usually greater in the beginning and lesser at the end. *identifying the major distribution strategies: exclusive distribution: giving a limited number of dealers the exclusive tight to distribute the company"s products in the territory. Eg, sony group for harvey norman and few dealers, lexus, toyota: intensive distribution: the stocking of the products in as many outlets as possible. The level of the exposure for three strategies.
