Dimensions of Marketing Strategy: Distribution Strategy · PDF fileDimensions of Marketing...
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Dimensions of Marketing Strategy:Distribution Strategy
Pages 402-408 in your textbook
What To Expect
Marketing Channels What paths do products take to get to
Intensity of Market Coverage How widely do you distribute products?
Physical Distribution What activities move products to customers?
A Marketing channel is the middleman that moves products from the producer to the consumer.
Retailers- Buy products from manufacturers and sell to consumers for household use, not for resale.
Wholesalers- Buy products from producers or other wholesalers to sell to retailers.
Supply Chain Management
Long term partnerships among marketing channel members who work together to reduce costs and make decisions to conveniently move products from supplier to manufacturer to wholesaler to retailer to consumer to satisfy customers
Creates alliances between channel members
Channels for Consumer Products Channel A: Producer to Consumer
Farmers selling fruit to consumer
Channel B: Producer to retailer to consumer
College textbooks, automobiles
Channel C: Producer, wholesaler, retailer, to consumer
Televisions, clocks, watches
Channel D:Producer, agent, wholesaler, retailer, consumer
Convenience products, Candy
Channels for Business ProductsMore than half of business products are sold through direct marketing channelsBusiness customers like to communicate directly with producers to gain technical assistance and assurance
Intensity of Market Coverage
How widely to distribute a product-how many and which outlets should carry the product?
Intrinsic distribution Makes product available in as many outlets as possible
Selective distribution Small number of outlets used to expose product
Exclusive distribution Gives one outlet the sole right to sell the product in a
Physical Distribution includes all activities relating to moving products to customers.
Transportation Railways: least expensive for heavy commodities,
food, raw materials, and coals Motor vehicles: greater flexibility to reach locations;
door-to-door service Inland Waterways: agricultural and industrial products Pipelines: petroleum, natural gas, wood chips,
chemicals Airways: speed and high dependability, most
expensive means of transportation
The design and operation of how facilities receive, store, and ship products
Companies often own and operate their own, some rent
Important so products are available for shipment to different geographic locations
Physical handling of products in warehousing and transportation
Efficiency improves customer service
Importance and Homework
Distribution Strategy can make or break your product and/or business.
Use your knowledge from today to complete the assignment being handed
out by the beginning of next class period.
Have a great day!