ELEMENTS OF DISTRIBUTION

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Presentation transcript:

ELEMENTS OF DISTRIBUTION Marketing Management Session 9 November 4, 1998

COURSE OUTLINE Distribution: The origins of modern marketing Some common myths of distribution Managerial aspects of distribution Video: The Fresh Connection Guest speakers: Procter&Gamble

MYTH No. 1 The presence of middlemen increases the cost of the product to the consumer.

MYTH No. 2 Direct channels of distribution should be used for highly perishable goods.

MIDDLEMEN PROVIDE Form utility Place utility Time utility

IMPORTANT FACTORS OF DISTRIBUTION Direct vs. indirect channels Market coverage Type of middlemen Channel organization

IMPORTANCE OF DISTRIBUTION Long-term decision Costly decision Involving various departments Involving various firms Least controlable

TYPE OF CHANNELS Direct channels: conditions? Product category Customers Positioning, … Indirect channels: conditions? Positioning

MARKET COVERAGE Intensive distribution (mass distribution) Selective distribution Exclusive distribution

OTHER ASPECTS Logistics Retailing Transportation Warehousing Retailer part of the distribution channel As marketing company

TYPE OF MIDDLEMEN Wholesalers vs. retailers Merchants vs. intermediary Services provided

NEXT CLASS Pricing decisions, chapters 10 and 11 Pricing objectives Pricing flexibility Pricing strategies over the PLC Methods of price setting Case presentation: Canadian vs. Air Canada Video: Leader of the pack, What the market can bear