Distribution Channels Lesson 4.1. The Distribution Function “Marketing” relatively new term…only used in last 50 – 60 years. Prior to “marketing,” companies.

Slides:



Advertisements
Similar presentations
Place (Distribution).
Advertisements

Producing and Marketing Goods and Services
Channels of Distribution
THE CONTEXT OF LOGISTICS. Cycle of Supply and Demand Customers Other Inputs Other Outputs Operations Demand for Products Supply of Products passed to.
Deciding on a Distribution Channel. Lesson Goals: Learn different methods of distribution Recognize continuous nature of marketing methods Obtain information.
Distribution Customer Service and Logistics For use only with Perreault/Cannon/McCarthy or Perreault/McCarthy texts. © 2008 McGraw-Hill.
Channels of Distribution Chapters 15, 16 Any series of firms that participate in the flow of goods from producer to final user.  Short: producer → consumer.
Presented by Diego Ruiz Jeffery Botwinick Karina Ramos Yanmi Wang
THE PLACE. MARKETING MIX PROMO- TION PRODUCT PRICE PLACE MARKETING MIX How the goods get from the producer to the customer.
UNIT F MANAGEMENT OF DISTRIBUTION, PROMOTION, AND SELLING
3.05 QUICK QUIZ.
Principles of Business & Finance
Channel of Distribution
Target Markets and Channel Design Strategy
10-3 Pricing Factors DO NOW: When purchasing an item how do you determine whether the asking price is a good value?
2 pt 3 pt 4 pt 5pt 1 pt 2 pt 3 pt 4 pt 5 pt 1 pt 2pt 3 pt 4pt 5 pt 1pt 2pt 3 pt 4 pt 5 pt 1 pt 2 pt 3 pt 4pt 5 pt 1pt Channels of Distribution Vocabulary.
3.3.3 PLACE. Central Question How do you decide how and where to sell your product/service?
Channel Management / Distribution
© 2012 Cengage Learning. All Rights Reserved. SLIDE MARKETING (part 2) Price and Distribute Products Goal 1Discuss how the selling price of a product.
Distribution and Planning The 4 th P of the Marketing Mix - Place.
Ind – Acquire the foundational knowledge of channel management
“Distribution” Importance of Distribution Intermediaries Wholesalers Retailers Types of Channels Transportation Methods Unit 4.
Marketing Basics Chapter 10-1.
MARKETING THROUGH DISTRIBUTION
Introduction to Business 3e 13 Part V: Marketing Copyright © 2004 South-Western. All rights reserved. Distributing Products.
Channels of Distribution From the Manufacturer to the Customer.
Channels of Distribution Chapter 21. Ch 21 Sec Distribution The concept of a channel of distribution Who channel members are The different non-store.
© 2009 South-Western, Cengage LearningMARKETING 1 Chapter 13 GETTING PRODUCTS TO CUSTOMERS 13-1Marketing through Distribution 13-2Assembling Distribution.
Channel and Distribution Tactics
Principles of Business, Marketing, and Finance Wholesalers in a Private Enterprise System Copyright © Texas Education Agency, All rights reserved.
Principles of Business, Marketing, and Finance Lesson Eleven Wholesalers in a Private Enterprise System UNT in partnership with TEA, Copyright ©. All rights.
Chapter 21 Product Development and Distribution 1 Chapter 21 Product Development and Distribution ©2008 Thomson/South-Western.
Product Development and Distribution
Distribution: Customer Service
1 Unit 2 -- Distribution. 2 Unit Objectives b Define channels of distribution. b Identify channel members. b Describe merchant intermediaries. b List.
Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Chapter 5.
1 Agribusiness Library LESSON: L Selling Agricultural Products and Services.
Distribution Chapter 13. What is distribution? Determining the best methods and procedures so that prospective customers can locate, obtain, and use a.
CHAPTER 10 MARKETING.
MARKETING MARKETING © South-Western Thomson CHAPTER 13 Get the Product to Customers 13.1 Marketing Through Distribution 13.2 Assembling Channels of Distribution.
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 10 SLIDE Marketing Basics Develop Effective.
Lesson 3- Distribution.
2 2 distribution Components to distribution physically distributing goods through those channels selecting, developing, and managing distribution channels.
Our Business Requirements Grandmother’s Books - II.
Marketing Principles of Business & Marketing. Marketing Basics  Marketing may be the most visible set of business activates to consumers, yet is also.
IGCSE Business Studies Unit – Placement (Distribution) i-study.co.uk.
Marketing 36 Foundations of Technology. Marketing Today, there are thousands of products available to each of us. These product must be marketed. Potential.
Explain the nature and scope of cHannel management
Channels of Distribution Unit 2, Lesson 3 Copyright © Texas Education Agency, All rights reserved.
BUSINESS 1 Marketing in a Changing World: Creating Customer Value and Satisfaction.
Principles of Business & Finance
Unit 3 - The Marketing Mix
Principles of Business & Finance
Distribution in the Fashion Industry
Distribution #73- Explain the concept of distribution
Channels of Distribution
Place (Distribution).
4.08 CHANNEL MANAGEMENT & ITS ROLE IN MARKETING
Topic: Management of Distribution Unit: Distribution
Common Learning Blocks
Chapter 12 Marketing Channels and Channel Members
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 10 SLIDE Marketing Basics Develop Effective.
Principles of Business & Finance
Unit 6: Logistics and the Supply Chain
Unit 2 -- Distribution.
DO NOW What are some advantages of purchasing items from a farmer’s market in your town?
Distribution.
Distribution #73- Explain the concept of distribution
Product and Distribution Strategies
Principles of Business & Finance
Presentation transcript:

Distribution Channels Lesson 4.1

The Distribution Function “Marketing” relatively new term…only used in last 50 – 60 years. Prior to “marketing,” companies focused on distribution when they wanted to improve exchange process. Today, distribution is just one of many marketing activities.

The Distribution Function Distribution involves determining the best methods and procedures to use so prospective customers can locate, obtain, and use a business’s products and services.

Reducing Discrepancies The goal of marketing is the successful exchange of products and services between businesses and their customers.

Reducing Discrepancies Several discrepancies exist: Producers produce LOTS of a FEW products. Producers manufacture products at a specific time and place. Consumers want FEW of a LOT of products. Consumers’ time and location do not match producers.

Direct and Indirect Distribution Channels of Distribution are the routes products follow in moving from the producer to the consumer, including all related activities and participating organizations. May be short and simple OR long and complex Direct Distribution – when producers sell directly to the consumer Indirect Distribution – when distribution involves other businesses besides the producer.

Direct and Indirect Distribution ++ Adding businesses to the channel makes it more complex and difficult to control However, using specific businesses with expertise in transportation, product handling, or other distribution activities may result in improved distribution or actual cost savings. $$$$$

Direct Channels Direct distribution (direct marketing) – producer sells and distributes its product to consumers. May include:  salespeople  warehouses  trucks  order-processing procedures  customer service

Indirect Channels Indirect Channel – when producers cannot or choose not to perform all marketing activities. What if you had to locate and contact each manufacturer, agree on a price, and find a way to get the product from the business to your home? TOO MUCH TIME! Most common business with indirect channels: Wholesalers (ex, Costco) and Retailers (ex, Belk)

Distribution Activities  Where will the customer want to be able to obtain the product?  Where will the customer use the product?  Are there special requirements to transport, store, or display the product?  When should distribution occur?  Who should be responsible for each type of distribution activity?

Select a Channel of Distribution Producers generally prefer to use as few channels and channel members as possible. 1, 2, 3…

Factors to Consider Distance – if customers are located very close to producer, there is less need for channel members. Perishability – products that require rapid and careful handling (seafood, fresh fruit, flowers) Select a Channel of Distribution

Factors to Consider (continued) Special Handling – if product is delicate or easily damaged, likely to pass through as few channels as possible (medical equipment) Number of customers – greater the number of customers, the more channel members there usually will be (and vice versa)

Transportation Businesses must determine how to physically transport products from producer to consumer. Factors to Consider Size of goods Shape of goods Weight of goods Cost

Product Handling Product handling is important in order to avoid delayed, lost, or damaged shipments. Most products are handled several times on their way from producer to consumer. Businesses need efficiency in packaging, packing and unpacking, handling and storing products. KEEPING TRACK OF THE PRODUCT IS IMPORTANT!

Storage Consumers typically do not buy products as soon as they are produced. Warehouses and distribution centers are needed.  More chance for damage  Expensive  Companies now use mechanical equipment and robots to handle products.

Order Processing Customers place orders in a number of ways… retail store salesperson mail telephone online fax Most companies now have automated order processing.