Distribution Channels

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PRODUCT PLACING

DISTRIBUTION CHANNEL
DISTRIBUTION CHANNELS OR MARKETING
INTERMEDIARIES
• IS A SET OF INTERDEPENDENT ORGANIZATIONS THAT HELP MAKE PRODUCTS AVAILABLE
FOR USE OR CONSUMPTION BY THE FINAL CONSUMERS.
• IMAGINE THIS: IF THE MANUFACTURER SELL ITS PRODUCT DIRECTLY TO CUSTOMERS, IT
WILL HAVE TO DEAL WITH EACH CUSTOMER INDIVIDUALLY, INCREASING ITS CONTACT
WITH CUSTOMERS. THE CUSTOMERS WILL ALSO HAVE TO GO TO DIFFERENT
MANUFACTURERS IN ORDER TO BUY THE GOODS THEY NEEDS
• ON THE OTHER HAND, BY EMPLOYING DISTRIBUTION CHANNELS OR MARKETING
INTERMEDIARIES, A MAANUFACTURER ONLY DEALS WITH ONE OR A FEW DISTRIBUTORS,
AND THE CUSSTOMERS CAN BUY THEIR FAVORITE ITEMS FRON ONE OR TWO STORES ONLY
DISTRIBUTION CHANNELS OR
INTERMEDIARIES THAT BENEFITS THE
MANUFACTURERS.
• INFORMATION PROVIDER
• PRODUCT PROMOTION
• PHYSICAL DISTRIBUTION

BENEFIT CUSTOMERS
• MATCHING DEMANDS AND SUPPLIES
• MERCHANDISING
• SALES PROMOTION
CHANNEL LEVELS

• DIRECT MARKETING CHANNEL- HAS NO INTERMEDIARY LEVELS BECAUSE


COMPANY SELLS DIRECTLY TO CONSUMER USING THEIR OWN STORE OR ONLINE
STORE.
• INDIRECT MARKETING CHANNEL-INVOLVES ONE OR MORE INTERMEDIARIES
• A. MANUFACTURERS MAY BRING THEIR PRODUCTS DIRECTLY TO RETAILERS OR
MAY GO THROUGH DISTRBUTORS.

manufaturer retailer consumer


CHANNEL LEVELS

• MAUFACTURER MAY BRING THEIR PRODUCTS THROUGH TWO INTERMEDIARIES


(WHOLESALER AND RETAILER)

manufacturer wholesaler retailer conssumer


SUPPLY CHAIN MANAGEMENT

• IS THE MANAGEMENT OF UPSTREAM AND DOENSTEAM VALUE ADDED FLOWS OF


MATERIALS, FINAL GOODS, AND RELSTED INFORMATION AMONG SUPPLIER,
COMPANY, RESELLER AND FINAL CONSUMERS.
• MAJOR LOGISTICS FUNCTIONS
• 1. WAREHOUSING
• 2. INVENTORY MANAGEMENT
• 3. TRANSPORTATION
RETAILING

• INCLUDES ALL ACTIVITIES INVOLVED IN SELLING PRODUCTS OR SERVICES TO FINAL CONSUMERS


FOR THEIR PERSONAL OR HOUSEHOLD USE.
• RETAILERS-BUSINESS WHOSE SALES COMES PRIMARILY FROM RETAILING

RETAILERS’ MARKETING MIX DECISIONS


1. PRODUCT DECISION
2. PRICE DECISION
3. PLACE DECISION
4. PROMOTION DECISION
TYPES OF RETAIL OPERATION
AMOUNT OF SERVICES
1. SELF-SERVICE RETAILERS
2. LIMITED-SERVICE RETAILERS
3. FULL-SERVICE RETAILERS
PRODUCT LINES
1. SPECIALTY STORE
2. DEPARTMENT STORES
3. SUPERMARKETS
4. CONVENIENCE STORES
5. SUPERSTORES
6. SERVICE RETAILERS
RELATIVE PRICES
1. DISCOUNT STORES
2. OFF-PRICE RETAILERS
3. WAREHOUSE CLUB

GREEN RETAILING- ADAPT ENVIRONMENTALLY SUSTAINABLE


PRACTICES.
-THEY PROMOTE ENVIRONMENTAL FRIENDLY AND ORGANIC PRODUCT
-CREATE PROGRAMS TO ENCOURAGE CONSUMERS TO TAKE PART IN THEIR
ADVOCACY.
WHOLESALING
INCLUDES AL ACTIVITIES INVOLVED IN SELLING GOODS AND SERVICES
FOR RESALE OR BUSINESS USE OR FOR FURTHER PROCESSING.

TYPES OF WHOLESALERS
A. MERCHANT WHOLSALERS
-FULL-SERVICE MERCHANT WHOLESALERS
-LIMITED –SERVICE WHOLESALERS
B. BROKER AND AGENTS
C. MANUFACTURERS’ AND RETAILERS’ BRANCHES AND OFFICES
DISTRIBUTION CHANNEL DECISIONS

• CHOOSING INTERMEDIARIES
• MOTIVATING INTERMEDIARIES
• INTERNATIONAAL DISTRIBUTION CHANNELS

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