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C8. PLACE STRATEGY - DISTRIBUTION STRATEGY - Coggle Diagram
C8. PLACE STRATEGY - DISTRIBUTION STRATEGY
Channel design Decisions:
5 steps
Location
Transportation
Inventory
Information
Production
Number of Channel levels
Direct marketing channel (Zero-level)
: manufacturer to final cus.
Indirect marketing channel
: Channel containing
one or more
intermediary levels.
2-level
: Manufacturer -> wholesaler -> retailer -> cus.
3-level
: Manufacturer -> wholesaler -> jobber -> retailer -> cus.
1-level
: Manufacturer -> retailer -> cus.
Channel Systems
Horizontal marketing systems
:
two or more unrelated companies
put
together
resources or programs to exploit an emerging marketing opportunity.
Intergrating multichannel marketing system
: Adding more channels gives companies 3 important Benefits: increased market coverage, lower channel cost, more customized selling.
Vertical marketing system (VMS)*
includes the producer, wholesaler(s), and retailer(s)
acting as a unified system.
3 types
Corporate VMS
: under single ownership... through common ownership.
Administered VMS
: through the size and power of one of the members.
Contractual VMS
: through contracts.
The franchise organization
is the most common type of contractual relationship, includes: Manufacturer-sponsored retailer, Manufacturer-sponsored wholesaler, and Service-firm-sponsored retailer.
Conventional marketing channel
: consists of an independent producer, wholesaler(s), and retailer(s) ....
separate biz
,
maximize its own profits
.
Place
: includes company activities that make a product available to target consumers.
Marketing channel (Distribution channel)
: A set of
interdependent organizations
that help make a product & service available for
use or consumption
by the c
onsumer or biz user.
Channel level
: A layer of intermediaries that performs some work in bringing the product & its ownership closer to the final buyer.
4 criteria to chose a distribution channel
Evaluating the major alternatives
Identifying major alternatives
: Exclusive distribution (limite), Selection distribution (willing to), Intensive distribution (possible).
Setting channel objectives
Analysing consumer needs
Channel conflict
: disagreement. Types: Horizontal, Vertical, Multichannel.