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Principles and Practice of Marketing fourth edition
DAVID JOBBER Chapter 17 Distribution 1 1
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How a channel intermediary increases distribution efficiency
P C 1 2 3 4 5 6 7 8 9 Direct distribution P = Producer C = Customer Number of Contacts = Number of Producers X Number of Customers
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How a channel intermediary increases distribution efficiency
P C I 1 2 3 Distribution using a channel intermediary P = Producer C = Customer I = Channel intermediary Number of Contacts = Number of Producers + Number of Customers
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Distribution channels for consumer goods
Producer Consumer Producer Retailer Consumer Producer Wholesaler Retailer Consumer Producer Agent Wholesaler Retailer Consumer
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Distribution channels for cosmetics in Japan
Manufacturer Manufacturer’s own marketing companies or contracted dealers Specialist cosmetics wholesalers Marketing companies with branches Specialist retailers tied by franchise Agreements (cosmetics shops) Sales personnel Secondary wholesalers Retail shops Department stores Super- markets Beauty salons Pharmacies Food Consumers
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Distribution channels for industrial goods
Industrial Consumer Producer Industrial Consumer Producer Agent Distributor Industrial Consumer Producer Distributor Industrial Consumer Producer Agent Distributor
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Distribution channels for services
Consumer or industrial customer Service provider Service provider Consumer or industrial customer Agent
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Distribution intensity
Channel strategy Channel strategy Channel selection Channel integration Distribution intensity
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Channel management Channel management Selection Motivation Training
Evaluation Managing conflict
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Components of the physical distribution system
Customer service Inventory control Transportation Order processing Warehousing Materials handling
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Inventory control Time Inventory Lead Time Inventory level Maximum
Order point Safety stock level Order placed Order received Time
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Determining the economic order quantity
Total costs Cost per unit Inventory cost Order processing cost Economic order quantity Order quantity
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