University of Technical Education University of Sunderland: Ho Chi Minh City - 2009
University of Technical Education University of Sunderland: Ho Chi Minh City - 2009
University of Technical Education University of Sunderland: Ho Chi Minh City - 2009
University of Sunderland
Chapter 9
OUTLINE
1- Place
2- Distribution channels
3- Points in the chain of
distribution
4- Selection of distribution channel
5- Physical distribution
1- Place
Distribution: process of getting
products to consumers.
Chain of distribution: the process
which enables the flow of goods
between the producer and the
consumer.
Distribution channel: the means of
getting the goods to the consumer.
3
Perishability
Number
Size
of organisation
Bulk
Geographic
Product
mix dispersion
Product
standardisation
Past
Purchasing
patterns
channel
mix
Service
support
Buyers
susceptibility
to
Past
channel
mix
requirement
different selling
experience
Unit
value
methods.
4
3
Retailer
Consumer
Next
Next
Retailer
Wholesalers (offer a range of
products)
Distributors and dealer (offer
narrower product range)
Agents (earn a commission)
Franchisees (under the name
of a parent organisation)
Multiple stores (supermarkets)
Direct selling
8
Manufacturer
Manufacturer
Manufacturer
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Wholesaler
Consumer
Retailer
Consumer
Retailer
Consumer
Channel decision
What types of distributor are to be used?
How many of each type will be used?
Who will carry our specific marketing
tasks?
How will performance of distributors be
evaluated?
11
Supplier A
Supplier B
Supplier C
Supplier D
Intermediary
Intermediary
Customer A
Customer B
Customer C
Customer D
12
5- Physical distribution
Transportation
Location of warehouses
Logistics management
13
Modes of transport
Road transport
14
Modes of transport
Rail transport
15
Modes of transport
Water transport
16
Modes of transport
Air
transport
17
Location of warehouse
Selecting the area (market
potential)
Choosing the site (local transport
facilities, its geographical
position)
18
Logistic management
Customer benefits
Cost savings
Trends
19
21