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Distribution Strategy - Coggle Diagram
Distribution Strategy
Channel Organisations
Horizontal Marketing Systems
Multi-channel Marketing Systems
Vertical Marketing Systems
Contractual VMS
Administered VMS
Corporate VMS
Nature and Importance of Channels
How Channel Members Add Value
If there are 3 Manufacturers and 3 Customers with no distributor, there will be 9 channels, hence not efficient.
If there are 3 Manufacturers and 3 Customers with a distributor, there will be 6 channels, hence it is efficient.
Channel Levels, Roles and Functions
Marketing Channel Functions and Roles
Some help to Complete transactions:
Contact
Matching
Promotion
Negotiation
Information
Some help to fulfil the completed transactions:
Financing
Risk Taking
Physical Distribution
Channel Levels
Consumer marketing channels
Possible Intermediaries
Jobber
Retailer
Wholesaler
Industrial marketing channels
Possible intermediaries:
Manufacturer's representatives or sales branch
Industrial Distributor
Marketing Logistics
Companies today are placing greater emphasis on logistics for several reasons:
The explosion in product variety has created a need for improved logistics management.
Ordering, shipping, stocking and controlling such a variety of products presents a sizeable logistics challenge.
Improved logistics can yield tremendous cost saving to both the company and its customers.
Improvements in IT have created opportunities for improving distribution efficiency.
Customer service and satisfaction have become the cornerstones of marketing strategy in many businesses, and distribution is an important customer service element. Companies can gain powerful competitive edge by using improved logistics to give customer faster delivery, better service or lower prices.
Retailing
Retailing Trends and Development
The growing importance of retailing technology
The rise of mega-retailers
New retail forms and shortening retail life cycle
Retail Convergence
Internationalisation of retailers
Growth of non-store retailing
Wholesaling
Wholesalers add value by using one or more of the following:
Transportation
Financing
Warehousing
Risk Bearing
Bulk-breaking
Market Information
Buying and assortment building
Selling and promoting
Management services and advice