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    Unit 09 Place

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    Khan Ashfaque
    This document discusses distribution channels and channel management. It defines the key players in distribution channels as producers, users, and middlemen. It describes the main channel structures and functions such as transactional, logistical, and facilitating functions. It also discusses evaluating channel alternatives, specifying distribution tasks, evaluating performance, and approaches to support third party sales. Retail channels and types of retailers are covered as well as the differences between supply chains and marketing channels and the importance of integrated supply chain management.

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    Unit 09 Place

    Uploaded by

    Khan Ashfaque
    7 views20 pages
    This document discusses distribution channels and channel management. It defines the key players in distribution channels as producers, users, and middlemen. It describes the main channel structures and functions such as transactional, logistical, and facilitating functions. It also discusses evaluating channel alternatives, specifying distribution tasks, evaluating performance, and approaches to support third party sales. Retail channels and types of retailers are covered as well as the differences between supply chains and marketing channels and the importance of integrated supply chain management.

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    This document discusses distribution channels and channel management. It defines the key players in distribution channels as producers, users, and middlemen. It describes the main channel structures and functions such as transactional, logistical, and facilitating functions. It also discusses evaluating channel alternatives, specifying distribution tasks, evaluating performance, and approaches to support third party sales. Retail channels and types of retailers are covered as well as the differences between supply chains and marketing channels and the importance of integrated supply chain management.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    7 views20 pages

    Unit 09 Place

    Uploaded by

    Khan Ashfaque
    This document discusses distribution channels and channel management. It defines the key players in distribution channels as producers, users, and middlemen. It describes the main channel structures and functions such as transactional, logistical, and facilitating functions. It also discusses evaluating channel alternatives, specifying distribution tasks, evaluating performance, and approaches to support third party sales. Retail channels and types of retailers are covered as well as the differences between supply chains and marketing channels and the importance of integrated supply chain management.

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    © All Rights Reserved
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    Principles of Marketing

    Module 12: Place: Distribution Channels


    Channel Partners

    • The producer of the product: a craftsman,


    manufacturer, farmer, or other producer
    • The user of the product: an individual,
    household, business buyer, institution, or
    government
    • Middlemen at the wholesale and/or retail
    level
    Channel Functions

    • Transactional functions: buying, selling, and risk assumption


    • Logistical functions: assembly, storage, sorting, and transportation
    • Facilitating functions: post-purchase service and maintenance, financing, information
    dissemination, and channel coordination.
    Channel Structures

    While channels can be very complex, there is a set of channel structures that can be identified
    in most transactions:
    • Direct channel
    • Retail channel
    • Wholesale channel
    • Agent channel
    Evaluate and Select Channel Alternatives

    There are four considerations for channel alternatives:


    1. Number of levels
    2. Intensity at the various levels
    3. Types of intermediaries at each level
    4. Application of selection criteria to channel alternatives
    In addition, it is important to decide who will be in charge of the selected channels.
    Marketing Channels for Consumer Products
    Distribution Channels

    • Distribution channels cover all the activities needed to transfer the ownership of goods and move
    them from the point of production to the point of consumption
    • These activities include:
    • product flow
    • negotiation flow
    • ownership flow
    • information flow
    • promotion flow
    Five Flows in the Marketing Channel for Monster Beverages
    Channel Management: Analyze the Consumer

    • First, to whom shall we sell this merchandise immediately? Second, who are our ultimate
    users and buyers?
    • In both cases, certain basic questions apply: There is a need to know what the customer
    needs, where they buy, when they buy, why they buy from certain outlets, and how they buy
    • Manufacturers must also discover buying specifications for resellers
    Channel Objectives

    What must the channel achieve?


    Examples:
    • Growth in sales by reaching new markets and/or increasing sales in existing markets.
    • Maintenance or improvement of market share
    • Achieve a pattern of distribution by a certain time, place, and form
    • Reduce costs or increase profits by creating an efficient channel
    Specify Distribution Tasks

    What functions does the channel need to perform? Examples:


    • Store inventory
    • Deliver goods
    • Provide credit
    • Handle product returns
    Evaluate Channel Member Performance

    It is important to evaluate the performance level of the channel members, but channel members
    are independent business firms, rather than employees and activities under its control, these
    firms may be reluctant to change their practices
    Approaches to Support Third Party Sales Success

    • Understand and align incentives


    • Provide exceptional sales support
    • Create demand for your product
    Common Service Outputs

    • Special convenience: Can I get the product at or near the location where I want it?
    • Timing of availability: Do I need the product immediately or am I willing to wait?
    • Quantity: Am I willing to buy in bulk or buy multiple items?
    • Assortment and variety: Do I have a very particular need or a flexible need? Am I looking
    for one or many options?
    • Service: Do I require assistance or support through the purchase process?
    • Information: Do I need information to make a purchase?
    Retail

    • Retailing involves all activities required to market consumer goods and services to ultimate
    consumers who are purchasing for individual or family needs
    Types of Retail

    • Online
    • Catalog
    • Franchise
    • Supermarket
    • Malls and shopping centers
    • Chain store
    • Department store
    • Warehouse store
    Supply Chain vs. Marketing Channel

    The supply chain and marketing channels can be differentiated in the following ways:
    • The supply chain is broader than marketing channels.
    • Marketing channels are purely customer facing.
    • Marketing channels are part of the marketing mix.
    Supply Chain Management

    • The supply chain includes everything from product development, sourcing of materials,
    actual production, and transportation logistics
    • Supply chain management activities maximize customer value and allow the company to
    gain a competitive advantage
    Integrated Supply Chain Management

    Within the supply chain organization sourcing, demand planning, inventory planning,
    warehousing, logistics, and order-fulfillment functions must work together
    Quick Review

    • What are channels of distribution? Why do organizations use them?


    • How do channels affect the marketing of products and services?
    • What are the types of retailers? How are they used as a channel of distribution?
    • How does integrated supply chain management support an effective distribution strategy?

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