Beruflich Dokumente
Kultur Dokumente
MANAGEMENT
PART 1: DISTRIBUTION CHANNEL SYSTEMS
I. CHANNEL CONCEPTS
MARKETING MIX
CHALLENGES
“THE FOUR P’S”
Limited ability to gain and hold competitive
PRODUCT
advantage
Price wars erode profitability & provide unstable
PRICE
basis for sustaining competitive advantage
PROMOTION Expensive and short-lived
PLACE Distribution channels support & enhance
(DISTRIBUTION) other Ps to meet demands of target markets
DISTRIBUTION STRATEGY
VARIABLE
CHANNEL LOGISTICS
STRATEGY MANAGEMENT
Definitions:
Manufacturer: the movement of the product through these various
intermediaries.
Intermediaries (wholesalers/retailers): the flow of the title to
the goods.
Consumer: a lot of middlemen standing between them and the
producer of the product.
1. Product flow
The interplay of the buying and selling functions associated with the
transfer of title (right of ownership).
3. Ownership flow
The movement of the title to the product as it is passed along from the
manufacturer to final consumers.
4. Information flow
The flow of persuasive commu. in the form of ad., personal selling, sales
promotion, and publicity.
All channel
participants
Do they
perform
negotiatory
functions?
Yes No
Producers and
manufacturers
Wholesale intermediaries
Commercial
Contactual
Intermediaries
Channels
Yes organization Retail intermediaries
(marketing channel)
Consumers Target
Final users Markets
Do they Industries
perform
negotiatory
functions?
Transportation firms
Storage firms
Advertising agencies
No Facilitating agencies
Financial firms
Insurance firms
lack of expertise
lack of economies of scale
lack of local knowledge
lack of country access
lack of resources
Intermediaries:
A)Merchant wholesalers
“The role of the retailer in the distribution channel, regardless of his size
or type, is to interpret the demands of his customers and to find and stock
the goods these customers want, when they want them, and in the way
they want them. This adds up to having the right assortments at the time
customers are ready to buy.”
Charles Lazarus, Chairman of Lazarus stores, US
Definition: “The broad principles by which the firm expects to achieve its
distribution objectives for its target markets.”
The higher the priority given to distribution, the higher the level at
which it should be considered in formulating the organization’s
overall objectives and strategies.
Competitive Parity
Distribution Neglect
But:
Because customers perceive channel members as an extension of the
manufacturer’s own organization, members should:
Reflect channel strategies the firm has developed to achieve its
distribution objectives
Be consistent with the firm’s broader marketing objectives &
strategies
Reflect the objectives & strategies of the organization as a whole