1. Mrs. Brink Marketing Principles
Unit 7: Distribution
Mrs. Brink
Marketing Principles

2. What is distribution?
What do you think distribution is all about?

3. Reading Activity
Pages 1-9 STOP AFTER BROKERS SECTION
1. Why are marketing channel decisions as important as pricing and product feature decisions?
2. Why do channel partners rely on each other to sell their products and services?
3. How do companies add value to products via their marketing channels?
When you are done….
Twitter Vocabulary Activity
Chapter 13

4. The 4 P’s Product Price Promotion The Seven Functions
Place
Promotion
The Seven Functions
Product Service Management
Market Information Management
Financing
Distribution
Pricing
Promotions
Selling

5. The Importance of Distribution Activities
Distribution as an economic concept
Important for free enterprise
Influences supply and demand
PLACE UTILITY
Distribution is also an element of our Marketing Mix which is implemented throughout all marketing decisions!

6. What is a Channel of Distribution?
The path a product takes from the producer to the final user.
All products have a channel!

7. Channels of Distribution
Producer
Wholesaler
Agent
Retailer
Consumer/Industrial User
Channel Members: help to move products through the path

8. The Need for Distribution Channels
Adjusting differences between producers and consumers
Differences in quantity: must be able to adjust for large and small quantities
Differences in assortment: must get products from a number of sources
Differences in location: must get products to convenient locations
Differences in timing of production and consumption: different times of year require different distribution

9. Industrial Users
Market consisting of all customers who make purchases for business purposes; also called the business-to-business market

10. Consumers
Those who buy and actually use the product.

11. Intermediaries
Intermediaries are channel members that help move products from the producer or manufacturer to the final user.
“Middlemen”

12. Types of Intermediaries
Merchant Intermediaries
Wholesalers
Retailers
Agent Intermediaries
Independent Manufacturer’s Agents
Brokers

13. Planning and Managing Channels of Distribution
Channel participants
Channel members
Direct channel
Indirect channel
Chapter 13

14. Distribution Strategies Direct vs. Indirect Distribution
Direct - Goods or services are sold from the producer directly to the final user – no intermediaries are involved.
Indirect - Goods or services are sold through the use of intermediaries.

15. Distribution Intensity
Intensive
Complete market coverage
All suitable outlets
Selective
Limited number of outlets
More control
Exclusive
Protected Territories
Franchises

16. 5 Channels for Consumer Products
1 : Direct sales from manufacturer to consumer – Avon
2: Manufacturer to Retailer to Consumer
3: Manufacturer to Wholesaler to Retailer to Consumer
4: Manufacturer to Agent to Wholesaler to Retailer to Consumer – Small retailers, “Mom and Pop” type stores
5: Manufacturer to Agent to Retailer to Consumer – Cookware, Meat, Cosmetics, Supermarkets

17. Multiple Channels of Distribution
Sometimes businesses opt to use a mixture of distribution channels
Direct + Indirect=Multiple Channels
Chapter 13

18. Wholesalers & Retailers
Buy large quantities of goods from manufacturers, store the goods, and resell them to other businesses.
Retailers
Sell goods to the ultimate consumer through their own stores.

19. Who Needs Wholesaling? Benefits of wholesaling Wholesaling activities
Specialize in storage
Cheaper
Purchases in efficient quantities
Wholesaling activities
Buying, selling, transporting, storing and financing
Wholesale clubs—SAM’S Club

20. Types of Retailers Product mix Limited-line retailers
Mixed merchandise retailers
Superstores
Service retailers
Location
Brick and Mortar
Convenience stores
Shopping centers
Stand-alone stores
Non-store retailing
Online