Distribution Strategy Pertemuan 19 Matakuliah: J0114/Manajemen Pemasaran Tahun: 2008

Bina Nusantara Learning Outcome Students are able to draw conclusions on the urgency of distribution and its surrounding environment.

Bina Nusantara Material Outline: Distribution and marketing management Distribution participants The environment of distribution Behavioral processes in distribution

Bina Nusantara Distribution and Marketing Management The well known marketing mix strategy model provides the basic framework for viewing the distribution management. Marketing mix as a strategic blending of four basic controllable marketing variables to meet the demand of market segments to which the firm wishes to appeal. The basic marketing mix variables often referred as Product, Price, Place and Promotions

Bina Nusantara Distribution and Participants All participants: –Do they perform negotiatory functions? Member participants: –Contactual organization: Producers and manufacturers Intermediaries Final users Non member participants: –Facilitating agencies: Transportation firms Storage firms Financial firms

Bina Nusantara Distribution Participants All wholesale firms: –Independent middlemen: Merchant wholesalers Agents, brokers, and commission merchants –Manufacturer owned: Manufacturer’s sales branches Wholesalers should: –Develop a marketing plan for the sales force –Redesign the sales force compensation plans –Develop an effective career path training for the sales force –Evaluate technology and other productivity tools to assist in the sales force effort.

Bina Nusantara Distribution Participants Merchant wholesalers should perform: –Assuring product availability –Providing customer service –Extending credit and financial assistance –Offering assortment convenience –Breaking bulk –Helping customers with advice and technical support

Bina Nusantara Distribution Participants Facilitating agencies: –Transportation agencies, include all firms offering transportation service on a public basis –Storage agencies, consist mainly of public warehouses that specialize in the storage of goods on a fee basis –Advertising agencies, offer the channel member expertise in developing promotion strategy –Financial agencies, consist of firms such as banks, finance companies, and factors that specialize in discounting accounts receivable.

Bina Nusantara The Environment of Distribution Economic environment Competitive environment Socio-cultural environment Technological environment Legal environment

Bina Nusantara Behavioral Process in Distribution Distribution as a social system: –The system generated by any process of interaction on the sociocultural level, between two or more actors. The actor is either a concrete human individual or a collectivity

Bina Nusantara Behavioral Process in Distribution Causes of channel conflict: –Role incongruities: Franchisees are expected to operate in strict accordance with the franchisor’s standard operating procedures. –Resource scarcities: Sometimes conflicts stem from a disagreement between channel members over the allocation of some valuable resources needed to achieve their respective goals. –Perceptual differences: It refers to the way an individual selects and interprets environmental stimuli. Ex. The use of POP. –Expectational differences –Goal incompatibilites –Communication difficulties

Bina Nusantara Conclusions: Merchant wholesalers should perform: –Assuring product availability –Providing customer service –Extending credit and financial assistance –Offering assortment convenience –Breaking bulk –Helping customers with advice and technical support Distribution as a social system: –The system generated by any process of interaction on the sociocultural level, between two or more actors. The actor is either a concrete human individual or a collectivity