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Published byRandolph Lambert Modified over 9 years ago
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Distribution
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Where to sell? Price Target Market Positioning Inventory Channel relationship
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Two types of Channels Direct to Consumer Indirect Channels – Agents/brokers – Wholesalers – Retailers Also, single channel vs Multichannel
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Value of Channel Transactional – Contact and promotion – Negotiation – Risk Logistical – Physical distribution – Storing – Sorting
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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
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Factors affecting channel choice Market – Customer behavior – Geography – Size Product – Complexity – PLC – Is product fragile
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Three Distribution Strategies Intensive Selective Exclusive
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Types of Retailers Food General Merchandise Service – AutoRental – Spas – Bank
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Food SuperMarket SuperCenter Convenience Warehouse Club
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General Merchandise Full-Line Discount Category Specialist Drug Specialty Department Off Price Extreme Value
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Benefits of Stores Browse Touch/Feel Personal Service Cash and Credit Entertainment/Social Immediate Gratification Risk Reduction
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Benefits of Online Presence Deeper and broader selection Personalization Insights into Customer Shopping Increase satisfaction and loyalty Expand Market presence
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