Distribution Decisions. Marketing channel: A set of interdependent organizations involved in the process of making a product or service available for.

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Presentation transcript:

Distribution Decisions

Marketing channel: A set of interdependent organizations involved in the process of making a product or service available for use or consumption.

Functions Information: Collection and dissemination of marketing research information in the marketing environment. Promotion: The development and spread of persuasive communications about the offer to customers. Negotiation: The effort to reach final agreement on price and other terms ease the transfer of ownership or possession. Ordering: The backward communication of intentions to buy by the marketing- channel members to the manufacturer.

Financing: The collection and allocation of funds required to finance inventories at different levels of the marketing channel. Risk taking: The assumption of risks related with carrying out the channel work. Physical possession : The successive storage and movement of physical goods from raw materials to the final customers. Payment: Buyers’ payment of their bills through financial institutions. Title: The transfer of ownership from an organization or a person to another. Functions [ continued … ]

Types of Intermediaries: Agent Middleman Wholesaler Retailers

Channel Alternatives Consumer product

Industrial product

Distribution Decisions Multiple متعددة Channel International الدولية Distribution – Export تصدير – Contractual عقد Agreement – Direct مباشرة Investment Channel for Services

Channel Design Decisions

Evaluating تقييم Major Channel Alternatives » Economic الاقتصادية criteria » Control criteria » Need for flexibility المرونة

Factors influencing selection حدد of Channel Members » Number of years in business » Product lines carried » Growth النمو » Profit record » Solvency الملاءة » Cooperativeness التعاون » Reputation بائع » Quality of sales force » Stores locations المكان » Future growth potential إمكانات النمو في المستقبل

Evaluate تقييم Channel Members Sales quota achievement Average inventory level Customer delivery time Action on damaged goods and lost goods Cooperation in promotional and training programs Modify تعديل Channel Arrangements Changes in consumer spending pattern, market grow, innovative distribution channels exist End