1. Distribution Strategy and The Strategic Selling Cycle
Chapter 7
Distribution Strategy and The Strategic Selling Cycle

2. “Distribution’s [main] role is to provide an effective link between production and the target consumer. In today’s environment, the main question is who will perform this task and how will it be executed given the new tools of technology and management.”
Cristina Tan
General Manager, Suy Sing Commercial

3. Edgar “injap” sia II
Mang inasal marketing’s program is like an archer who is aggressive, determined, confident, and precise in aiming at targets and with a speed like an arrow in reaching goals compared to those of the more established players.

4. Distribution strategy and the strategic cycle

5. Six Elements:
1. Coverage – Having the proper types of outlet in a geographical area is important.

6. Placement – A product has placement when it is carried in a store
Placement – A product has placement when it is carried in a store. Placement objectives or having a right target number of outlets ensure customer’s utmost convenience.

7. Volume – the right inventory level at the stores is critical.

8. Distribution Strategy and The Strategic selling Cycle
Chapter 7
Distribution Strategy and The Strategic selling Cycle

9. Distribution Mix Coverage
Having the proper types of outlet in Geographical.

10. Placement
Having a right target number of outlets to ensure customer’s utmost convenience
Place utility for consumer convenience calls for intensive distribution so that customers may get the product where they want them

11. Volume The right inventory level in the stores is critical
Too much inventory or “overloading” the outlets, is unhealthy as it goes against how a channel member normally earns a profit.
Small amount of inventory may result in out of stock situations

12. Display
The right shelf and off-shelf locations plus adequate display space assure marketers a higher probability that consumers will choose their brand over competition

13. PRICING
Having the right resale promotes healthy competition among dealers
Price wars are usually avoided, as dealers do not gain anything in the end

14. GOODWILL
Refers to the best relationship between a supplier and his channel members
Enables marketers to have good display space, and in some cases enables firms to have advanced notice about impending competitive promotional activities or price movements

15. DISTRIBUTION CHANNELS
Chapter 7

16. Distribution Channel performs the work of moving products from manufacturers to final consumers or business users.

17. DISTIRBUTION CHANNELS
Manufacturer
Distributor
Exhibit 7-2:
DISTIRBUTION CHANNELS
Wholesaler
Jobbers
Retailers
End Users

18. Distraibutors
Distributors are appointed to perform the distirbution function for manufacturers in making their products available.

21. Wholesaling
Wholesaling are activities of persons or organizations that sell to those who buy for resale or business use.

22. Located in Tondo, Manila
There are several wholesalers located in divisoria and some manufacturers because of their lenient credit policy.

24. Wholesalers who also provide warehousing space for manufacturers and distribution. they are usually appointed in areas where a firm does not have economies of scale.

25. a sales operation where the ex-truck salesman carries stocks in his van or small truck, saturates a given territory regularly by selling his stocks on “cash” basis and delivers the stocks immediately upon order. Ex-tuck selling is usually the entry-level activity of new salesmen.

26. Some manufacturers or wholesalers/distributors are using the feeder model. Here, instead of a two-man team of the ex-truck salesman and delivery helper saturating a territory with stocks.

27. An activity involving the sale of products or service directly to final consumer.

29. Distribution Channels (cont.)
Bryan kyle marajas
Bsba – 2c

30. FRANCHISING
An accelerated method to expand distribution coverage is thru franchising.
In this method, a franchise fee is paid to the franchise owner in exchange of an established brand name, a proven system of operation, training, and other infrastructure support.
It is said that franchising offers a high 90% success rate, but it must be based on having the right location.

31. FRANCHISING
In 2007, TGP took 3 years to build a chain of 1,000 stores what took industry leader Mercury Drug 6 decades to build.

32. DIRECT SELLING
Direct selling is the marketing and selling of products directly to consumers away from a fixed retail location.
Network Marketing (type of direct selling compensation scheme) is also known as the “People’s Franchise.”

33. DIRECT SELLING
Some members of the Direct Selling Association of the Philippines (DSAP):

34. DIRECT SELLING
The DSAP has over 2M “foot soldiers” acting as their distribution network.
They also try to protect consumer rights and fights pyramiding companies that use network marketing as their front. Others hide their scam by offering products of no real world value.

35. INTERNET
E-business has been widely known since the 90’s. No longer are companies limited to sell products through stores or direct sales.

36. INTERNET
Business-to-business marketing is also giving a different face to the selling process as companies realize that substantial money and time can be saved from the paperless e-marketplace.
The Philippines’
first internet-based
procurement exchange.

37. HOME DELIVERY
The process of home delivery:

38. Evaluation Distributions Channels
By :Katherine Olid

39. Cost Efficiency
It is important to estimate the long- term impact of having one`s own sales force and appointing a distributor. Once sales vol. increase to as economic level ,having one`s sales force may be cost-efficient.

40. Control
As distributors are not the company`s employees, they may have different priorities. Profit may be their main obj. while the firm`s obj. may be market shares.

41. Channel Modification
The marketplace is ever changing. The flexibility to modify distribution may be need.

42. BACKWARD DISTRIBUTION
Marketing channels usually describe forward movement of products from manufacturers to ultimate consumers.

43. Gray Marketing
Gray marketing or Parallel distribution is a term used to describe unauthorized importation and distribution of products bearing genuine brands across markets.

44. Global and Regional Market
One major trend in Business is the regionalization of markets , which will ultimately lead to the globalization of markets.