MKT 100 Chapter Notes - Chapter 12: Complete Control, Management System, Barcode
28 Jun 2018
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MKT Chapter 12 - Marketing Channels: Distribution Strategy (Place)
A well thought out distribution strategy that is well integrated with other elements
of the marketing mix can results in increased revenues
Distribution channel - the institutions that transfer the ownership of and move
goods from the point of production to the point of consumption
Supply chain management - refers to a set of approaches and techniques firms
employ to efficiently and effectively integrate their suppliers, manufacturers,
warehouses, stores and transportation intermediaries into a seamless value chain in
which merchandise is produced and distributed in the right quantities, to the right
locations and the right time
Wholesalers - those firms engaged in buying, taking title to, often storing and
physically handling goods in large quantities, and then reselling the goods (usually
in smaller quantities) to retailers or industrial or business users
Retailers - sell product directly to consumers
Logistics management - the integration of two or more activities for the purpose of
planning, implementing and controlling the efficient flow of raw materials, in-
process inventory and finished goods form the point of origin to the point of
consumption
Distribution channels are composed of various entities that are buying, selling or
helping facilitate the exchange
Designing distribution channels
Channel structure
Direct distribution
oAllow manufacturers to deal directly with consumers
Indirect distribution
oOne or more intermediaries work with manufacturers to provide G
and S to consumers
oPush or pull strategy
Multichannel distribution
oCombination of direct and indirect
Customer expectations
oKey part in any strategy is to determine customer expectations
Channel member characteristics
oThe larger and more sophisticated the channel member, the less likely
that it will use intermediaries
Distribution intensity - the number of channel members to use at each level of the
supply chain
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Document Summary
Mkt chapter 12 - marketing channels: distribution strategy (place) A well thought out distribution strategy that is well integrated with other elements of the marketing mix can results in increased revenues. Distribution channel - the institutions that transfer the ownership of and move goods from the point of production to the point of consumption. Wholesalers - those firms engaged in buying, taking title to, often storing and physically handling goods in large quantities, and then reselling the goods (usually in smaller quantities) to retailers or industrial or business users. Distribution channels are composed of various entities that are buying, selling or helping facilitate the exchange. Direct distribution: allow manufacturers to deal directly with consumers. Indirect distribution: one or more intermediaries work with manufacturers to provide g and s to consumers, push or pull strategy. Multichannel distribution: combination of direct and indirect. Customer expectations: key part in any strategy is to determine customer expectations.
