Distribution decisions
Marketing intermediaries = middlemen that link producers to other intermediaries or ultimate consumers through contractual arrangements or through the purchase and resale or products
physical distribution firms
marketing services agencies
resellers/wholesalers/distributors/retailers
financial intermediaries
Physical distribution (logistics) = activities used to move products from producers to consumers and other end users
materials handling
warehousing
inventory management
transportation
order processing
outsourcing = the contracting of physical distribution tasks to third parties
Distribution = the decisions and activities that make products available to customers when and where they want to purchase them
Marketing channel = a group of individuals and organisations that produce products for, and deliver products as middlemen to, customers
direct = owned and managed by a single channel member to supply a target market segment
indirect = comprised of several independently owned channel members who work together to serve a market segment
functions: marketing information, marketing management, facilitating exchanges, promotion, price, physical distribution
multiple = a combination of direct and indirect channels whereby each channel is used to reach a different target market
hybrid = a combination of direct and indirect channels whereby different channels are used to reach the same target market segment
Retailing = all transaction in which the buyer intends to consume the product through personal, family or household use
General merchandise retailer = a retail establishment that offers a variety of product lines that are stocked in considerable depth
Specialty retailers = stores that carry a narrow product mix product mix with deep product lines. traditional specialty stores, category killer, off price retailers
Retailer = an organisation that purchases products for the purpose of reselling them to ultimate consumers
issues in retailing = location, store image, atmospherics, category mismanagement
Direct marketing = the use of telecommunications and non-personal media to introduce products to consumers who then can purchase them via mail, telephone or the internet (catalogue marketing, telemarketing, television home shopping, online retailing)
Direct selling = the marketing of products to ultimate consumers through face to face sales presentations at home or in the workplace
Franchising = arrangement in which a supplier (franchiser) grants a dealer (franchisee) the right to sell the franchiser's products in exchange for some type of consideration
Wholesaling = transaction in which products are bought for resale, for making other products or for general business purposes
Merchant wholesalers take title, assume risk and buy and resell products to other retailers, wholesalers or other business customers (full service/limited service)
Agents and brokers = do not take title to products and are compensated with commissions for negotiating exchanges. Agents represent either buyer or seller, usually on a permanent basis. Brokers bring buyers and sellers together on a temporary basis
Wholesaler = an individual or organisation that sells products that are bought for resale...
Strategic issues in marketing channels
channel cooperation
channel conflict
channel leadership
channel integration
selecting marketing channels
type of organisation
competition
product attributes
marketing environmental forces
customer characteristics
characteristics of intermediaries
channel captain = dominant leader of a marketing channel or supply chain who organises and controls the channel (may be a producer, wholesaler or retailer)
channel power = the ability of one channel member to influence another member's goal achievement. channel captain must possess channel power
leads to greater trust and more satisfying relationship among channel members and improves the overall functioning of the channel
can improve by directing efforts toward common objectives that are agreed on and given precise definitions
speeds up inventory replenishment, improves customer service and cuts the cost of bringing products to consumer
self interest creates misunderstanding about role expectations, there is increased use of multiple channels, intermediaries over emphasise competing products
resolve conflict by: specifying role of each channel member, allocating different brands or markets among resellers, leadership and benevolent exercise of control are essentiall
vertical = combining two or more stages of marketing channel under one management
horizontal = combining organisations at the same level of operation under one management