Distribution. Where to sell? Price Target Market Positioning Inventory Channel relationship.

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Presentation transcript:

Distribution

Where to sell? Price Target Market Positioning Inventory Channel relationship

Two types of Channels Direct to Consumer Indirect Channels – Agents/brokers – Wholesalers – Retailers Also, single channel vs Multichannel

Value of Channel Transactional – Contact and promotion – Negotiation – Risk Logistical – Physical distribution – Storing – Sorting

Problems in the channel Power  control/influence behavior of other channel members Control  one channel member intentionally affects another’s behavior Leadership  member who exercises authority and power over activities of other Conflict  clash between members – Horizontal – Vertical

Factors affecting channel choice Market – Customer behavior – Geography – Size Product – Complexity – PLC – Is product fragile

Three Distribution Strategies Intensive Selective Exclusive

Types of Retailers Food General Merchandise Service – AutoRental – Spas – Bank

Food SuperMarket SuperCenter Convenience Warehouse Club

General Merchandise Full-Line Discount Category Specialist Drug Specialty Department Off Price Extreme Value

Benefits of Stores Browse Touch/Feel Personal Service Cash and Credit Entertainment/Social Immediate Gratification Risk Reduction

Benefits of Online Presence Deeper and broader selection Personalization Insights into Customer Shopping Increase satisfaction and loyalty Expand Market presence