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