Distribution+f2012
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The document discusses distribution channels and decisions. It describes the roles of different intermediaries like wholesalers, retailers, brokers and logistics providers in distribution. It also outlines considerations for distribution decisions related to customer needs, product characteristics, company resources and competitors. Finally, it discusses the importance of logistics and supply chain management in distribution.
Distribution+f2012
- 1. Distribution • Distribution channels • Role of intermediaries • Distribution decisions • Retailing
- 2. Distribution Channels • Manufacturer/service provider • Intermediaries – Wholesalers – Merchant wholesalers/industrial distributors – Agents/brokers – Logistics providers – Retailers
- 3. Channels for Consumer Products Direct Retailer Wholesaler Agent/Broker Channel Channel Channel Channel Producer Producer Producer Producer Agents or Brokers Wholesalers Wholesalers Retailers Retailers Retailers Consumers Consumers Consumers Consumers 3
- 4. Channels for Business Products Direct Direct Industrial Agent/Broker Agent/Broker Channel Channel Distributor Channel Industrial Channel Producer Producer Producer Producer Producer Agents or Agents or Brokers Brokers Industrial Industrial Distributor Distributor Industrial Govt. Industrial Industrial Industrial User Buyer User User User 3
- 5. Role of Intermediaries • Physical distribution – Transportation and storage (temporal and spatial discrepancies) – Breaking bulk (discrepancy of quantity) – Accumulating bulk (discrepancy of quantity) – Creating assortment (discrepancy of assortment) – Specialization – Transaction reduction (transactional functions) • Contacting, negotiating, transporting, financing, etc.
- 7. Role of Intermediaries • Communication – Marketing research – Selling role for manufacturer/service provider • IMC • Personal selling • Point-of-Sales (POS) • After-sale service – Buying role for customers • Likes/dislikes • Returns
- 8. Distribution Decisions • Channel(s) – Structure – Traditional/alternative • Intensity – Intensive – Selective – Exclusive • Control – Partnering – Vertical integration – Conflict
- 9. Distribution Decisions • Considerations – Customer needs • Convenience • Speed • Assortment • Add-on services – Product characteristics • Perishability, bulk – Company characteristics • Size, financial resources • Core competencies, reputation – Intermediary characteristics – Competitor characteristics • Duplicate • Avoid
- 10. Distribution Decisions • Logistics – Supply chain management – Materials management – Order processing/fulfillment – Inventory management – Warehousing – Transportation – Enterprise Resource Planning (ERP)