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Marketing mix - Place (Choosing distribution channels (Type of product…
Marketing mix - Place
Choosing distribution channels
Level of service desired
Size of company
Type of product
intensive distribution
convenience products
selective distribution
Fewer / Selected outlets
exclusive distribution
speciality products
usually preclude distributors from selling rival products
may have tying agreements
short distribution
perishables
Environmental factors
ie, delivery in suburban areas
ie. phone ordering for those without internet
competitors
Collaborative Distribution
Backhaul
sharing opposite routes to fill empty capacity
Co-loading
sharing same routes to fill capcaity
Continuous move routing
replace seperate shipments with multistop trips
Physical Internet
shared networks of logistics
Distribution channels
Traditional
Manufacturer
wholesaler
retailer
consumer
Vertical Marketing system (VMS)
Manufacturer / Wholesaler / Retailer
Consumer
Corporate VMS
Own other channel members
ie Apple
Contractual VMS
Have contractual arrangements with other channel members
ie Franchises
administer VMS
Has control due to size
ie Tesco
Distribution channels
channel members
Can provide additional functions
information
can provide vital information to asssit with strategic planning
promotion
can communicate promotions for a project
contact
may have contact with consumers
can influence purchase decisions
matching
can influence aspects of product
may match customers needs mror closely
negotiation
agreeing price or terms to facilitate exchanges
financing
can provide funding for channel distribution
risk taking
take on some of the risk of distribution
offer a value delivery network
Omni-channel marketing
using all available channels on customer agenda to guarantee sale