1. ELEMENTS OF DISTRIBUTION
Marketing Management
Session 9
November 4, 1998

2. COURSE OUTLINE Distribution: The origins of modern marketing
Some common myths of distribution
Managerial aspects of distribution
Video: The Fresh Connection
Guest speakers: Procter&Gamble

3. MYTH No. 1
The presence of middlemen increases the cost of the product to the consumer.

4. MYTH No. 2
Direct channels of distribution should be used for highly perishable goods.

5. MIDDLEMEN PROVIDE
Form utility
Place utility
Time utility

6. IMPORTANT FACTORS OF DISTRIBUTION
Direct vs. indirect channels
Market coverage
Type of middlemen
Channel organization

7. IMPORTANCE OF DISTRIBUTION
Long-term decision
Costly decision
Involving various departments
Involving various firms
Least controlable

8. TYPE OF CHANNELS Direct channels: conditions?
Product category
Customers
Positioning, …
Indirect channels: conditions?
Positioning

9. MARKET COVERAGE Intensive distribution (mass distribution)
Selective distribution
Exclusive distribution

10. OTHER ASPECTS Logistics Retailing Transportation Warehousing
Retailer part of the distribution channel
As marketing company

11. TYPE OF MIDDLEMEN Wholesalers vs. retailers Merchants vs. intermediary
Services provided

12. NEXT CLASS Pricing decisions, chapters 10 and 11 Pricing objectives
Pricing flexibility
Pricing strategies over the PLC
Methods of price setting
Case presentation: Canadian vs. Air Canada
Video: Leader of the pack, What the market can bear