DISTRIBUTION

S E S S I O N    E I G H T

Use Down Arrow to Scroll through the Slides

MOSTAFA PURMEHDI

Role of Distribution

O B J E C T I V E S

MAKE AVAILABLE FOR CUSTOMERS

• The right product

• The right place

• The right timing

• The right quantities and assortments

distribution intermediaries

reduce gaps between needs of consumers and producers

T  H  E     R  A  T  I  O  N  A  L  E     F  O  R

LIFE LOOKS A LOT MESSIER WITHOUT THE MIDDLEMEN

1200

1~3

1200

1~3

R E T A I L E R

FUNCTIONSOF DISTRIBUTION INTERMEDIARIES

DIST RIBU TION

O  t  h  e  r mktng mix elements

PUSH STRATEGY

PULL STRATEGY

Promotion done through distribution intermediaries

Promotion directly addressing the final customer

Types of

Distribution Channels

O B J E C T I V E S

TRADERS

RETAILERS

AGENTS

FACILITATORS

T Y P E S  O F  I N T E R M E D I A R I E S

LENGTH OF A CHANNEL

VERTICALMARKETINGSYSTEMS

C O N T R A C T U A L     V M S

VERTICALMARKETINGSYSTEMS

F R A N C H I S E C R A S H C O U R S E

Selecting A Distribution Channel

O B J E C T I V E S

The basic question for marketing manager is to choose the right intermediary."

Selection Criteria

• Cost and Profitability
• Network Control
• Image of the Intermediary
• Compatibility with existing network
• Network Flexibility

S  E  L  E  C  T  I  N  G  A Distribution    Network

IntensityofDistribution

D  E  T  E  R  M  I  N  I  N  G  T  H  E

INTENSIVE

SELECTIVE

EXCLUSIVE

All appropriate points of sale

Multiple points of sale

Single point of sale in each geographic zones

Everyday consumer products and regular industrial goods

Shopping goods, specialized goods

Specialty products

The basic question for marketing manager is to choose the right intermediary."

Managing A Distribution Channel

O B J E C T I V E S

Multi-Channel Distribution

DISTRIBUTORS

SPECIALIZED

STORE

CONSUMERS

CONSUMERS

CONSUMERS

DEPARTMENT STORE AND NEWSSTAND

ADVANTAGES

• Broader market coverage
• Increase in sales
• Reduce risk
• Diversification of sources of revenue
• Set up entry barrier in the market
• Increase points of contact with customers
• Segmentation tool

MULTI-CHANNEL DISTRIBUTION

Types of

Multi-channel

CONFLICT

• Incompatibility of objectives

• Poorly defined roles and rights

• Difference in perception

C ON F L I C T RESOLUTION STRATEGIES:

• Marketing mix elements

• Institutional measures

• Economic incentives

COOPTATION

Win support of officers of other organizations by inviting them to your advisory boards and board of directors

COOPTATIONEXAMPLE