MARKETING MIX: DISTRIBUTION

Principles of Marketing BUSI 141Professor Conrad

Our Discussion for Today•What is Distribution?•Channel Functions•Wholesaling Intermediaries•Types of Distribution Channels

•4 Steps of Developing a Distribution Strategy

•The Lowdown on Logistics

What is Distribution?The process of getting the right product to the right place at the right time for the right customer.

•Physical Distribution•Channel of Distribution•Channel Intermediaries

PHYSICAL DISTRIBUTION

The activities that move finished goods from the manufacturer to final customers, including

order processing, warehousing, materials handling, transportation and inventory control.

Types of Wholesaling Intermediaries•Independent

•Merchant Wholesalers•Merchandise agent or broker•Manufacturer-owned

Types of Distribution Channels

Channel

Strategy

Develop Objectives

Evaluate Environme

nt

Choose Strategy

Develop Tactics

Make produce available when, where and in quantities needed at

minimum cost.

Internal

External

Conventional

VerticalHorizontal

IntensiveExclusiveSelective

Select Channel Partners

Manage the Channel

Lowdown on LogisticsThe process of designing, managing, and improving the movement of products through the supply chain. Includes purchasing, manufacturing, storage and transport.

Order processing

The time between when an order comes in and the product goes out. < Time = < Money

Warehousing

Storing goods to match supply with demandAnticipating amount and time for transfer to next channel

Materials Handling

Moving products into, within and out o the warehouse

Transportation

DependabilityCostSpeedAccessibilityCapabilityTraceability

Inventory ControlProcess to ensure sufficient quantities to meet demands but not too much.