Distribution Management and Marketing Mix (Marketing)
Channel Participants
Participants participate in the performance of the flows
distribute the products to the actual users
The main objective of the marketing process is to
Distribution Management
The management of all activities which facilitates movement and coordination of supply and demand in the creation of time and place utility in goods.
possesion
When the consumer goes to the retail shop to buy the tube, he can pay for it and take it home whereby he becomes the owner of the product and thus the '__________' utility has also been provided for.
Fluidity
a function of changing demands of customers availability of Technology Entry of the new participants
Direct marketing channel
A marketing channel that has no intermediaries level.
Sorting
Accumulation, Allocation, Break bulk Assorting
Wholesaling
Activities involving resellers, institutions and commercial users
Retailing
Activities to deliver the offerings to the ultimate customer
Reverse Channels
Applicable both for the used materials and also the protective materials
Channel Participants
Assistance has to improve the performance for the end user
Distribution Management
Broad range of activities concerned with the efficient movement of finished products from the end of the production line to the consumer and in some cases it also includes the movement of raw materials from the source of supply to the beginning of the production line.
Improve Efficiency Sorting Reutilization Facilitator Search
Channel Roles (4)
Fluidity in the Channels
Channels always evolving
Indirect marketing channel
Channels containing one or more intermediaries
Channel Participants
Channels in a state of constant flux
1.Manufacturer -> Consumer Channel 2.Manufacturer -> Retailer -> Consumer Channel 3.Manufacturer -> Wholesaler -> Retailer -> Consumer Channel 4.Manufacturer -> Wholesaler -> Jobber -> Retailer -> Consumer
Customer Marketing Channels (4)
place
Distribution Management deals with the "_____" aspect of the marketing mix.
place utility, time utility and possession utility
Distribution Management provides _____, ____ and _________ to the customer.
Reverse Channels
Efforts to use the materials optimally
Channel Participants
End user can also be opted in as a participants
Marketing Flows
Functions have to be performed
place
If a consumer wants to buy a tube of Colgate Toothpaste, the distribution management in the company ensures that the toothpaste is made available to this consumer at a retail shop close to his residence-thus providing the "_____" utility.
time
If this consumer wants to buy this particular product at 8 pm on a Tuesday, the company in particular ensures that the tube is available at the retail counter at this chosen time of the consumer-thus providing the '____' utility.
Marketing Flows
Interdependence of the participants is the core
Channel Participants
Intermediaries include those who may not be obvious
Reverse Channels
Leads to the stress on return of the materials
place utility time utility possession utility (Nakacycle)
Major Role of an Intermediary (3)
place utility, time utility and possession utility
Major Role of an Intermediary (3)
Interdependent Organizations Orchestrated Networks Making Offerings for use
Marketing Channels (3)
Reverse Channels
Need of controlling waste
Channel Participants
New members can always move in
Marketing Channels
Primarily used to satisfy and also to stimulate
Improve Efficiency
Reducing Transactions
Fluidity in the Channels
Shifting power within the channels
Distribution Management
The art and science of determining requirements, acquiring them, distributing them and finally maintaining them in an operationally ready condition for their entire lives
Retailing vs. Wholesaling
The difference lies in motives
1.He/She must understand the retail and wholesale market and type of middlemen available in both. 2.He/She must understand the various conflicts which continually exist between and within the channel. 3.He/She must select the general channel to be used keeping in mind the goals of the company marketing programme and the job to be done by distribution system. 4.He/She must take decision regarding be intensity of the distribution (i.e. the number of middlemen) to be used each level and each market. 5.He/She must select the specific firms which will handle his product and then manage the day to day working relationship with them. 6.He/She must determine the methods and the procedure in firms (i.e. use of the transportation and warehouse facilities and services in firms making programme) in the physical distribution of the product.
The marketing executive must undertake to following steps in order to establish the channel of distribution for a company: (6)
Marketing Flows
These can be interchanged or changed among channel members, depending upon the specialization & division of labor
1. the creation of demand is made through the process of advertising and sales promotion activities 2. the distribution through the channels of distribution
These two functions are most important:
Distribution Management
This aspect of the marketing function provides place, time and possession utility to the customer.
Reverse Channels
This creates opportunity for fulfilling this function
distribute the products to the actual users
This function involves a number of sub-functions to be performed by a producer or manufacturer
1. Direct marketing channel 2. Indirect marketing channel
Types of Marketing Channels (2)
Marketing channels
are sets of independent organization involved in the process of making a product or service available for use or consumption.
Distribution Management
deals with the "place" aspect of the marketing mix.
Reutilization
to reduce bargaining and speeding up