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Marketing Mix - Place (distribution channels) (Distribution channels…
Marketing Mix - Place (distribution channels)
Distribution channels
information – channel members can be a vital source of information about other stakeholders and forces in the marketing environment, which can help an organisation with its strategic planning
promotion – communicating promotions for a product
contact – some channel members will be in contact with potential
buyers or consumers and can influence their purchase decisions
matching – some channel members may influence aspects of the product
to enable it to match customers needs more closely
negotiation – agreeing price or terms to facilitate exchanges
financing – providing funding for channel distribution
risk taking – taking on some of the risks involved in channel
distribution.
A vertical marketing system (VMS) is one in which channel members act as
a unified system under the leadership of one channel member
owning the other channel members – corporate VMS
having contractual arrangements with them – contractual VMS
exerting control over them through superior size or power –
administered VMS
Collaborative distribution
backhaul – sharing opposite routes to fill empty capacity
co-loading – sharing capacity in the same direction to fill up loads
continuous move routing – replacing separate shipments with multistop
trips
physical internet – a shared network based on an interconnected
logistics system of shared facilities for transporting and storing freight.
Multiple distribution channels
convenience products typically use intensive distribution –
widespread, convenient locations
shopping products tend to use selective distribution – through
fewer, selected outlets
speciality products typically favour exclusive distribution –
through one or only a few exclusive outlets
perishable products may need to have short distribution designs
Omni-channel world