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Lecture 10

MKT 100 Lecture 10: MKT 100 Week 11 Notes

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Ryerson University
MKT 100
Hamed Mehrabi

Marketing Week 11 Lecture/Textbook Notes Recall: The Marketing Plan Place: Distribution Channels Distribution Components • supply chain management system - a set of techniques and approaches to market products Direct Distribution • greater control over everything (branding, cost, etc) • lower cost • direct contact with customer needs - change quickly to consumer wants • quicker response or changes in marketing mix • internet makes direct distribution easier Indirect Distribution • facilities the exchange process by cutting the number of contacts necessary • standardizes exchange transactions • facilitates search Supply Chain adds value • each new link in the chain adds value to the product • intermediaries have transactional function; logistical functions and facilitating functions Multichannel/Hybrid Model • combining direct and indirect distribution • need to be careful not to sell same products as retailers Push vs. Pull Strategy Distribution Intensity • intensive - selling a product through as many responsible and suitable outlets as possible; ex. convenience goods (goods purchased based on habit) • exclusive - selling through only one middlemen in a particular geographic area; ex. speciality goods (maintain reputation and prestige; used if do not have the capacity to satisfy demand • selective - selling through retailers who will give the product special attention Managing Channels • each member plays a specialized role in the channel • channel conflict occurs when members disagree on roles, activities or rewards Conventional vs. Vertical Marketing Systems
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