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Distribution channels
Customers offered a range of channels to purchase offerings
Multiple distribution channels
service different segments of consumers through different channels
Offer consumer multiple channel options to buy
i.e purchase online/in-store
Collaborative distribution
Types
physical internet
Co-loading
Continuous move routing
Backhaul
unified channel system - collab for mutual advantage
Channel members i.e suppliers & distributors
enables greater efficiency, expertise & reach
Allows organisations to offer products to customers as a 'value delivery network'
Functions provided by channel members
contact
financing
info
risk taking
physical distribution
storage of goods
negotiation
promotion
matching
Choosing which channel, is influenced by:
level of service being provided
Size of the company
Types of products
competition
STEEPLE
Traditional distribution
Manufacture
Wholesaler
Retailer
Consumer
Vertical Marketing System (VMS)
Manufacturer Wholesaler Retailer
Consumer
Exerting control through size/power
administered VMS
Contractual agreement
Contractual VMS
Owning other channel members
Corporate VMS
Unified system - leadership of one channel member
Agreements
Exclusive distribution/ exclusive dealings
Manufacturer requires distributors to sell only its products
Sales territories restrictions
prohibits distributors from selling products outside designated areas
Tying agreement
manufacturer ties distributors to taking more or all of its products
Where consumers purchase products or discover them
MARKETING MIX
