Distribution
Distribution decisions
Lesson 3
Objectives
•
Explain why companies use marketing channels and discuss the functions these channels perform.
•
Discuss how channel members interact and how they organize to perform the work of the channel.
•
•
Identify the major channel alternatives open to a company.
•
Discuss the nature and importance of marketing logistics and integrated supply chain management.
•
Discuss the future of retailing
Explain how companies select, motivate, and evaluate channel members.
13- 2
Structure of the lesson
3.1. Concept and functions of the marketing channel: intermediaries 3.2. Types and importance of marketing channels
3.3. Channel behaviour and organization
3.4. Channel design decisions
3.5. Channel management decisions
3.6. Marketing logistics and supply chain management
Appendix: Future of retailing
13- 3
3.1. Concept and functions of the marketing channel: intermediaries
VALUE DELIVERY NETWORK
Company, suppliers, distributors, and customers who partner with each other to improve the performance of the entire system
Objective
13- 4
PALM has created a value delivery network to provide its customers with greater value 13- 5
3.1. Concept and functions of the marketing channel: intermediaries
VALUE DELIVERY NETWORK
Marketing channel
- It
is the “downstream” part of the value delivery network: the connection between companies and its customers - Interdependent
organizations that help make a product or service available for use or consumption
13- 6
3.1. Concept and functions of the marketing channel: intermediaries
INTERMEDIARIES
Wholesalers and retailers
Agents and brokers Others
Physical distributions firms
Financial intermediaries…
13- 7
3.1. Concept and functions of the marketing channel: intermediaries
Basic function of the marketing channel:
Make the product available for consumers and businesses
(in terms of place, time and product quantity)
“Availability”
Marketing channels
With distributors
Without
Lesson 3
Objectives
•
Explain why companies use marketing channels and discuss the functions these channels perform.
•
Discuss how channel members interact and how they organize to perform the work of the channel.
•
•
Identify the major channel alternatives open to a company.
•
Discuss the nature and importance of marketing logistics and integrated supply chain management.
•
Discuss the future of retailing
Explain how companies select, motivate, and evaluate channel members.
13- 2
Structure of the lesson
3.1. Concept and functions of the marketing channel: intermediaries 3.2. Types and importance of marketing channels
3.3. Channel behaviour and organization
3.4. Channel design decisions
3.5. Channel management decisions
3.6. Marketing logistics and supply chain management
Appendix: Future of retailing
13- 3
3.1. Concept and functions of the marketing channel: intermediaries
VALUE DELIVERY NETWORK
Company, suppliers, distributors, and customers who partner with each other to improve the performance of the entire system
Objective
13- 4
PALM has created a value delivery network to provide its customers with greater value 13- 5
3.1. Concept and functions of the marketing channel: intermediaries
VALUE DELIVERY NETWORK
Marketing channel
- It
is the “downstream” part of the value delivery network: the connection between companies and its customers - Interdependent
organizations that help make a product or service available for use or consumption
13- 6
3.1. Concept and functions of the marketing channel: intermediaries
INTERMEDIARIES
Wholesalers and retailers
Agents and brokers Others
Physical distributions firms
Financial intermediaries…
13- 7
3.1. Concept and functions of the marketing channel: intermediaries
Basic function of the marketing channel:
Make the product available for consumers and businesses
(in terms of place, time and product quantity)
“Availability”
Marketing channels
With distributors
Without