The Internet for Distribution Instructor: Hanniya Abid Assistant Professor COMSATS Institute of Information Technology Lecture 15 E-Marketing.

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Presentation transcript:

The Internet for Distribution Instructor: Hanniya Abid Assistant Professor COMSATS Institute of Information Technology Lecture 15 E-Marketing

Objectives After this lecture, you will be able to: Describe the three major functions of a distribution channel. Explain how the Internet is affecting distribution channel length. Discuss trends in supply chain management and power relationships among channel players. Outline the major models used by online channel members. Highlight how companies can use distribution channel metrics.

Dimensions of e-Commerce

Distribution Channel Length and Functions Channel length refers to the number of intermediaries between the supplier and the consumer. Direct distribution channels have no intermediaries. Indirect channels have one or more intermediaries. Eliminating intermediaries can potentially reduce costs. Disintermediation describes the process of eliminating traditional intermediaries.

Functions of a Distribution Channel Channel functions can be characterized as follows: Transactional Logistical Facilitating

Transactional Functions Transactional Functions include: Making contact with buyers. Marketing communication strategies. Matching products to buyer’s needs. Negotiating price. Processing transactions.

Logistical Functions Logistical functions include physical distribution activities, such as: Transportation Inventory storage Aggregation of products Logistical functions are often outsourced to third- party specialists such as UPS or FedEx.

RFID

The Last Mile Problem 25% of deliveries require multiple delivery attempts. 30% of packages are left on doorsteps, with possibilities for theft. Innovative firms are introducing solutions. Smart box. Retail aggregator model: delivery at convenience stores or service stations. E-stops, storefronts for customer package pickups. Order online for offline retail delivery.