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

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Presentation on theme: "Distribution. Where to sell? Price Target Market Positioning Inventory Channel relationship."— Presentation transcript:

1 Distribution

2 Where to sell? Price Target Market Positioning Inventory Channel relationship

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

4

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

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7 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

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

9 Three Distribution Strategies Intensive Selective Exclusive

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

11 Food SuperMarket SuperCenter Convenience Warehouse Club

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

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

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


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