1. The Nature of Distribution

2. Distribution’s Function bThe major purpose of marketing is to satisfy human needs by delivering products of various types to buyers when and where they want them and at a reasonable cost. bThe “when and where” is the function of Distribution

3. Distribution PRODUCERPRODUCER CONSUMERCONSUMER DISTRIBUTION

4. Channel of Distribution bAll intermediaries involved in the exchange process bExcludes pre-manufacturing (raw materials or component parts) bFacilitate movement of physical goods and title PRODUCER INTERMEDIARIES CONSUMER

5. Channel Functions Physical distribution Communication & transaction Facilitating

6. Transporting & storing Reducing transactions Physical Distribution Functions Breaking bulk Accumulating bulk Creating assortments

7. Communication & Transaction Functions Gather & Disseminate Information 1 9 24 1 37 2 3 57 Buying & Selling Personal Selling Advertising Sales Promotion Transfer of Ownership

8. Facilitating Functions Extra ServicesCredit ServicesRisk Taking

9. Typical Channels of Distribution ANUFACTURER ONSUMER HOLESALER ETAILER GENT

10. Business-to-Business Channels Direct Wholesaler Agent

11. Business-to-Business Channel Trends Infomediaries & Vertical Exchange

12. Vertical Marketing Systems bCorporate systems - total ownership bAdministered - strong leadership bContractual - legal relationships

13. Planning the Channel of Distribution bDetermining the structure bMarketing mix strategy bOrganizational resources bExternal environmental factors bMarket characteristics bConsumer preferences and behavior bThe nature and availability of Intermediaries bOther environmental factors

14. Intensive Distribution Seeks to obtain maximum product exposure at the retail level Producer RetailerRetailerRetailer Retailer RetailerRetailer Retailer Retailer RetailerRetailerRetailer Retailer RetailerRetailerRetailer

15. Selective Distribution Product is sold in a limited number of outlets Producer RetailerRetailerRetailer RetailerRetailerRetailer

16. Product is sold in only one outlet in a given area Producer Retailer Exclusive Distribution

17. Channel Relationships bCooperation bConflict bPower bCoercive bExpert bLegitimate

18. Other Distribution Management Issues bReverse distribution One Coca Cola Distributor One thousand retailers OK Difficult bEthical, Political, & Legal

19. thx