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Block 1: Session 6 - Place (Marketing distribution channels (Book)…
Block 1: Session 6 - Place
Marketing distribution channels (Book)
Needs to be
Easy to purchase by customers
Sufficient quantities
Appropriate outlets
Acceptable delivery costs
Channels
Kotler and Armstrong (2016)
Value delivery network
Value of this = Efficiency, expertise and reach
Complex set of channel members such as suppliers and distributors, that enable an organisation to offer its products to customers
Functions of channel members
Information
Promotion
Contact
Matching
Negotiation
Financing
Risk taking
Traditional distribution
1) Manufacturer
2) Wholesaler
3) Retailer
4) Consumer
Vertical marketing system (VMS)
Unified system under one leader
Corporate
E.g. Apple
Contractual
E.g. Franchises
Administered
E.g. Big supermarkets
Collaborative distribution
Unified channel systems - Horizontal - Work collaboratively
Types
Backhaul
Co-loading
Continuous moving routes
Physical internet
The sharing of distribution resources between two or more shippers to send their goods within a common logistics network
Multiple distribution channels
Physical stores
Online
Catalogues
Companies may offer different options to suit different customers
Choosing the right channel depends on
Level of service
Size of company
Type of product
Convenience
Intensive distribution - Widespread, convenient locations
Shopping
Selective distribution - Fewer, selected outlets
Speciality
Excluisive distribution - one or few exclusion outlets
Pershiable
Short distribution designs
Environmental factors (STEEPLE)
Exclusive
Distributors can only sell that manufacturers products