Tuesday, September 8, 2015

Chapter 12 - Distribution and Supply Chain Management

Distribution and Supply Chain Management

Distribution includes all activities related to the transfer of goods and services from one business to another or a business to a consumer.

Distribution planning: A systematic decision making process regarding the physical movement and transfer of ownership of goods and services
An intermediary offers producers of goods and services the advantage of being able to make goods and services readily available to target markets

The Structure of Distribution can go from all or none of these depending on the channel length and width.
Manufacturer- Agent – Wholesaler- Retailer – Consumer

Distribution Channels and Competitive Advantage – New Channel strategies as a means of gaining competitive advantage

            Multi-Channeling : different kinds of intermediaries are used at the same level in the distribution channel
            Direct Marketing :
            Contract Marketing or business to business marketing

The factors considered when selecting a distribution channel
Product and Service Characteristics
Competition
Company Resources
            Intensive Distribution – product is available in the widest channel of dist
            Selective Distribution – a few outlets in a particular market
            Exclusive Distribution – only one outlet in a geographic location
Channel Relationships
Horizontal Conflict  and Vertical Conflict entails conflict that occurs what a channel member feels another member at the same level or a different level is engaging inappropriately

Channel Control has Manufacturer Control, Distributor Control, and Retailer Control.

Vertical Marketing System and Horizontal Marketing Systems



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