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The Marketing Mix- Place (Vertical Marketing System(VMS) (VMS is a system…
The Marketing Mix- Place
distribution channels
channel members
suppliers
distributors
provide storage and physical distribution of goods
channel members perform the following
information
contact
promotion
matching
negotiation
financing
risk taking
choosing the right distribution channel
how choices are influenced
type of products
convenience
intensive distribution/ easy locations
shopping
selective distribution/ fewer selected outlets
speciality
exclusive distribution/one or a few exclusive outlets
perishable
shorter channels
competitors
size of the company
how much distribution the firm itself can provide
Environmental factors (STEEPLE)
level of service they wish to provide
collaborative distribution
hauliers
shippers
merge
several types:
continuous move routing
physical internet
co-loading
backhaul
tradtional distribution channels
wholesaler
retailer
manfacturer
consumer
Vertical Marketing System(VMS)
wholesaler
retailer
manufacturer
consumer
VMS is a system under the leadership of one channel member
Contractual VMS
franchises- KFC
administered VMS
major super markets
corporate VMS
apple- flexibility and control over its manufacturing
service distribution
direct
provider
consumer
how conflicts in channels arise
lack of communication- misunderstanding
poor performance by channel members
restrictions manufacturers place on distributors
tying agreements
sales territories restrictions
rise to legal issues
restrain trade
create monopolies
restrict competition
expectations between channel members are breached
